Mortgage shortfall

CPAG

Newer version available

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Debt Advice Handbook Scotland 1st ed - with new material

Mortgage shortfall

If any balance remains after the sale or repossession of a client’s home, the lender has 20 years to recover the capital amount owed and five years to recover any interest owed.1s8(2) PL(S) Act 1973

Note that the lender/creditor only has five years from the date of sale or possession to decide and inform the client of their intention to pursue them for recovery of any shortfall.

Advisers should be mindful of the Financial Conduct Authority’s rules under The Mortgages and Home Finance: Conduct of Business Sourcebook (MCOB). MCOB 13 is concerned with how firms administer a regulated mortgage contract, administer a home purchase plan and administer a sale shortfalls.2

1 s8(2) PL(S) Act 1973 »

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Debt Advice Handbook Scotland - 1st edition

Written in partnership with Citizens Advice Scotland and Money Advice Scotland, CPAG is delighted to announce the first edition of the Debt Advice Handbook Scotland. Based on CPAG’s best-selling Debt Advice Handbook, it details the stages of the debt advice process in Scotland and the key skills needed to give good advice. No money adviser should be without this essential guide. This online edition is funded by the Scottish government.

The Handbook provides the most comprehensive information needed by advisers on the tools and strategies to help clients with their financial difficulties. It details the key stages of money advice, including interviewing clients, establishing liability, prioritising debts, preparing a financial statement, negotiating with creditors and dealing with sheriff officers. Emphasis is placed on taking due care of vulnerable clients and making sure that any payment arrangements agreed are appropriate. There is a focus on sustainable credit arrangements that do not affect a client’s ability to pay essential living expenses and priority debts.

It is the go-to tool for specialist debt advisers as a first step in accessing primary legislation and regulations and is also a reliable guide and training aid for the new debt adviser. Advisers who undertake debt advice alongside other sorts of advice work or other professional disciplines – such as social workers and housing officers – will find this handbook an indispensable resource.

Fully indexed and cross-referenced to law, official guidance and to court and tribunal decisions, tactical guidance and examples are included throughout.

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CPAG

Print publication date Jun, 2024

This content was last updated:2024-07-01

Word count175,160

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