Debt Questions forum. General questions on debt issues.

Moderators: TalbotWoods, JaneClack

By grover
#7140 Hello all,
I am currently being challanged by a debt agency of Bournemouth, on behalf of the halifax reguarding a shortfall on a mortage of which the last payment was made on 15th December 1995 and the property was sold 21st Feb 1997.

The original advance from The halifax, was for 76,000 GBP. The property was sold for 56,000GBP and they had recieved payments of 31,510GBP.
I am now being chased for a supposed shortfall of 55,000GBP which is mainly interest on the account of 47,000GBP between 19/07/90 to 21/02/97. Am i correct in thinking/believing that this interest cannot be now sought as it has been inexcess of 6 years since the time of the debt?
Or does the 12 year rule still apply?

Any help would be appreciated.

many thanks
User avatar
By JaneClack
#7145 No, the first amount of money taken is for the interest owed and any surplus to the shortfall in capital and they are very canny. 12 years from the date of the last payment for the capital. However the Council of Mortgage Lenders have an unofficial agreement they will not chase shortfalls of any kind after six years of no contact. Any payment however small or admission of the debt restarts the clock. If they are members of the CML contact them but we have seen this happen before and no doubt will again.