Limitation periods for suing on mortgage debts

Bristol and West plc v Bartlett and others, 31 July, 2002 (Court of Appeal).

The Court of Appeal has ended an element of uncertainty as to the correct limitation period in respect of mortgage debts in cases where the mortgagee, having exercised the power of sale, is suing the mortgagor for a shortfall.

The limitation period for the enforcement of a debt secured by a mortgage made by deed is governed by section 20 of the Limitation Act 1980 and is twelve years from the date the cause of action accrued in relation to the principal. In relation to payments of interest it is six years from the date the interest became due. The fact that the mortgagee has exercised its power of sale, does not affect the position.