## Facts

- Mr. Moss, the borrower, defaulted on loan repayments to Abbey National plc.
- Abbey National plc began possession proceedings to repossess and sell the mortgaged property.
- Mr. Moss sought a postponement of the sale, citing his wife's serious illness and arguing that a rapid sale would cause her hardship and threaten her health.
- The principal dispute focused on whether the lender was obliged to consider the borrower's personal circumstances when executing a sale.

## Issues

1. Whether a lender is required to consider a borrower’s personal circumstances, such as serious illness in the family, when exercising the statutory power of sale after default.
2. The extent to which a lender’s duty to obtain a reasonable price requires consideration of borrower’s interests and personal hardship.
3. Whether a short delay for humanitarian reasons could be justified against the lender’s duty to recover debt.

## Decision

- The Court of Appeal held that lenders must act fairly and strive for the best possible price, but are not obligated to prioritise the borrower's interests over their own.
- It was found unjustifiable for Abbey National to disregard the borrower's request for a brief delay due to the wife's illness, as such a delay was unlikely to materially affect the lender’s financial position.
- The court determined that fairness can require consideration of personal circumstances where hardship would be caused or the sale adversely affected, but unjustified or indefinite delays are not permitted.
- Each case must be decided on its individual facts.

## Legal Principles

- The power of sale by a lender is conditioned by an obligation to act fairly and obtain an appropriate market price.
- Lenders should consider personal circumstances that may materially affect the sale process or result in undue hardship.
- The requirement of fairness does not mean all personal circumstances justify delay; lenders must individually assess each situation, balancing their rights with meaningful borrower hardship.
- The principles affirm lenders' rights must be exercised fairly, taking into account the impact on vulnerable borrowers when warranted.

## Conclusion

Abbey National plc v Moss confirms that lenders exercising a power of sale after default must act fairly and, in appropriate cases, consider the borrower's significant personal circumstances, especially where a short delay would not prejudice the lender. The case remains influential in shaping the balance between lender rights and borrower hardship in mortgage repossession proceedings.


Abbey National plc v Moss [1993] 26 HLR 249