Glossary · Liability letter

Liability letter: what it means in a property-transfer file

A liability letter provides the lender’s stated liability information for its specified purpose. In a sale involving a mortgage, it is part of the evidence used to plan the settlement process. It is not, by itself, proof that the mortgage has been released.

Read it in context

Check the borrower, relevant facility or property information, amount basis, addressee and any validity or conditions. Confirm with the bank that the document is the correct output for the proposed transaction.

Do not treat the figure as a permanent balance independent of the stated date and conditions.

Keep the stages distinct

Liability information supports the settlement planning. Payment evidence concerns the payment actually processed. Release evidence supports the relevant later step. The bank and authorised channel confirm what is required for each part of the file.

See the mortgage discharge guide for the full distinction.

If the intended date changes

Ask whether the letter, amount or instructions need updating. Keep the replacement document as the current version and retain the earlier version as history. Do not edit the date or amount yourself.

If the letter is outstanding

Use the request reference to ask what information or action is missing. Name the exact document needed and the transaction step depending on it. The bank-delay guide includes a focused request.

Where it fits in our services

The seller’s lender dependency is relevant to mortgage-to-cash and mortgage-to-mortgage coordination. The bank remains responsible for its own requirements and outputs.