Mortgage Shortfall

A lender is not obliged to waive a mortgage shortfall when the borrower owes the debt and the lender has provided correct information about repayment obligations.

A lender is entitled under mortgage terms to pursue a shortfall debt arising from a property sale in possession, and doing so is not inherently unfair.

A lender may pay outstanding service charges and ground rent on behalf of a borrower and add them to the mortgage account when there is documented agreement and court authority for doing so.

A financial business is liable for compensation for misleading information only to the extent it caused reasonably foreseeable loss, and compensation awards should be fair to both parties rather than punitive.

A lender is contractually entitled to apply an early repayment charge as agreed in the mortgage terms, even if doing so creates a shortfall, and is not required to waive it on grounds of proportionality or loss mitigation.

A borrower remains jointly and severally liable for a mortgage shortfall debt regardless of whether they occupied or controlled the property after separation from a co-borrower.