Mortgage Reinstatement Request Letter Template for England and Wales

When your mortgage falls into arrears, a Mortgage Reinstatement Request Letter provides the formal pathway to restore your loan to good standing. This document serves as your official communication to your lender, demonstrating both your commitment to resolving the situation and your ability to maintain future payments under England and Wales mortgage law.

When do you need this document?

You need a Mortgage Reinstatement Request Letter when your mortgage payments have fallen behind and you want to avoid repossession proceedings. This might occur after experiencing temporary financial difficulties such as job loss, illness, or reduced income that prevented you from maintaining regular payments. The letter is essential when your lender has issued default notices or commenced possession proceedings, as it formally requests reinstatement of your mortgage agreement. It's particularly crucial if you've received a notice of intended possession action, as responding with a comprehensive reinstatement request can demonstrate to courts that you're taking positive action to resolve the arrears.

Key legal considerations

Your Mortgage Reinstatement Request Letter must comply with FCA Mortgage Conduct of Business Rules (MCOB), which require lenders to consider reasonable payment proposals from borrowers in financial difficulty. The letter should include complete financial disclosure, showing your current income and expenditure to prove affordability of the proposed arrangement. You must provide realistic timescales for clearing arrears while maintaining ongoing payments, as unrealistic proposals may be rejected. Include references to relevant consumer protection under the Consumer Credit Act 1974 and your rights under the Financial Services and Markets Act 2000. The letter should acknowledge the current arrears amount and demonstrate understanding of the seriousness of the situation while showing genuine commitment to resolution.

Legal requirements in England and Wales

Under England and Wales law, your letter must comply with the Pre-Action Protocol for Possession Claims, which requires lenders to consider alternative arrangements before pursuing possession. The Law of Property Act 1925 governs the fundamental mortgage relationship, while the Mortgage Credit Directive Order 2015 provides additional consumer protections for residential mortgages. Your request must include all required financial information as specified under MCOB rules, including income evidence and expenditure details. The FCA's Treating Customers Fairly principles require lenders to give proper consideration to reasonable requests, meaning your letter should be comprehensive and demonstrate genuine affordability. Include specific references to any relevant circumstances that may qualify for forbearance under regulatory guidance, such as payment holidays or temporary hardship provisions.