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Is this interest statute barred? Please help!


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Hi

I had a house repossessed in 1994; I paid the mortgage shortfall but the lenders then demanded £60,000 in interest. I made a few payments then wrote to tell them that my current circumstances made it impossible to continue the payments. My last contact with them was in 1998.

 

I have moved address a few times since then. I have now recently received several letters from solicitors representing them, sent to my new address, the latest one threatening that should they not hear from me, they will be taking me to court.

 

Can someone please confirm whether this debt, for interest only, is now statute barred and also tell me which section of the Limitation Act applies. Also, should I now write to them (using one of the statute barred template letters from this site), or just continue to ignore them.

 

Thanks for your help

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Hi Braska and welcome to the CAG Forums :)

 

It is my understanding that mortgage shortfalls are not statute barred until a period of twelve years has elapsed since payment or acknowledgement was last made.

 

We have a mortgage forum specifically aimed at helping people who have mortgage issues where I'm sure you will find your answer (the "Sticky" at the top of that forum is particularly relevant too).

 

Have a good read through the threads in there and if you still can't find what you're looking for, you can always post a new thread and ask for advice (simply copy and paste from your post above).

 

http://www.consumeractiongroup.co.uk/forum/mortgages-secured-loans/

 

Good Luck

 

Bo :)

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