Form N123: Lender's Mortgage Pre-Action Protocol Checklist
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If you are a lender bringing a possession claim based on mortgage arrears, or a borrower facing one, Form N123 is a document you need to understand. It is the checklist the court uses to see whether the lender has followed the Pre-Action Protocol for Possession Claims Based on Mortgage or Home Purchase Plan Arrears.
In plain terms, it is a short tick-box record showing what the lender did before asking a judge to take possession of someone's home. The protocol has been in place since October 2009 and exists to encourage lenders and borrowers to talk, to explore alternatives, and to treat court as a last resort.
This page explains what the form covers, who fills it in, when it needs to be produced, and the issues that tend to come up in practice.
What this document is
Form N123 is a two-page checklist that sits alongside the main possession claim paperwork in the County Court. It is not the claim form itself. Rather, it is evidence from the lender, or their solicitor or agent, confirming that the steps required by the Mortgage Pre-Action Protocol have actually been taken before the matter reached the hearing.
The form asks the claimant to confirm whether the protocol applies, what notices and information have been given to the borrower, whether the borrower has made any application for Support for Mortgage Interest or a mortgage rescue scheme, whether there is a live complaint with the Financial Ombudsman Service that could affect proceedings, what discussions have taken place about repaying the arrears, and whether the borrower has mentioned selling the property. A statement of truth at the end must be signed by the claimant or their legal representative. Getting it right matters because judges rely on it to decide whether the lender has behaved reasonably.
How to use this document
- Check whether the protocol applies to your claim. The Mortgage Pre-Action Protocol covers possession claims brought by lenders or home purchase plan providers against borrowers who have fallen into arrears. If the claim falls within its scope, the first part of Form N123 needs to confirm this clearly, because the rest of the checklist flows from that answer.
- Record the notices and information provided to the borrower. The claimant must set out what written communication has been sent to the defendant, including arrears notices and information about the consequences of the arrears building up. Keep copies of letters and reference dates accurately, as the court will want to see that the borrower had a fair opportunity to respond before proceedings started.
- Note any welfare or rescue scheme applications. If the borrower has applied for Support for Mortgage Interest, a local authority mortgage rescue scheme, or any similar assistance, this needs to be flagged on the form. Ongoing applications can sometimes justify the court adjourning or postponing the possession hearing, so accuracy here is important for both sides.
- Summarise discussions about repaying the arrears. The form asks for an overview of attempts made in the three months before the hearing to agree a way forward with the borrower. Record whether repayment proposals were made, whether they were accepted or rejected, and the reasoning. Blank or vague answers tend to draw unhelpful questions from the judge.
- Sign the statement of truth and bring copies to court. The claimant or their representative must sign the statement of truth at the end of the checklist. At least two copies of the completed form should be available on the day of the hearing, one for the court and one for the defendant, along with supporting documents referred to in the checklist.
Common questions
Q Who is responsible for completing Form N123?
The form is filled in by the claimant, which in a mortgage possession case is the lender or home purchase plan provider. In practice, it is almost always completed by the lender's solicitors or in-house legal team. The borrower does not complete Form N123, although they can challenge what is recorded on it if they disagree with the lender's account of events.
Q When does Form N123 need to be produced?
The checklist should be completed before the possession hearing and brought to court on the day. Judges typically expect at least two copies to be available so that the court and the defendant each have one. Producing it late, or turning up without it, can cause delay and may lead the judge to question whether the protocol has been taken seriously.
Q What happens if the lender has not followed the protocol?
If the court is not satisfied that the lender followed the Pre-Action Protocol, the judge may adjourn the hearing, refuse to make an immediate possession order, or take compliance into account when deciding costs. The protocol is not optional window dressing. It reflects the expectation that lenders treat possession as a last resort after genuine attempts to reach agreement.
Q Can a pending Financial Ombudsman complaint stop possession?
An unresolved complaint to the Financial Ombudsman Service relating to the arrears or the lender's handling of the account can, in some cases, justify the court postponing the possession hearing. It is not an automatic stop on proceedings, but the checklist requires the lender to disclose any such complaint so the judge can take it into account.
Q Does Form N123 apply to buy-to-let mortgages?
The pre-action protocol was designed mainly for residential borrowers living in the property, and its application to pure buy-to-let lending is narrower. That said, many lenders will still follow reasonable pre-action steps in commercial style lending. If you are unsure whether the protocol applies to a particular loan, it is worth taking advice before assuming either way.
Q What if the borrower says they are selling the property?
The checklist asks specifically whether the defendant has told the lender that the property is being sold or is about to be sold. A genuine, progressing sale can be a reason for the court to suspend possession for a short period to let the sale complete. The form exists partly so that the judge can weigh this up with accurate information in front of them.
Q Is Form N123 the same as the claim form?
No. The claim itself is usually started using Form N5 (the possession claim form), supported by particulars of claim. Form N123 is an additional checklist that sits alongside the claim bundle. It is specific to mortgage possession cases and its job is to show the court that the pre-action protocol has been complied with before the hearing takes place.
Sources
This guide is based on primary UK law and official guidance.
- Guidance · UK GovForm N123 – Mortgage pre-action protocol checklist (gov.uk)gov.uk
- Guidance · HMCTSPre-Action Protocol for Possession Claims Based on Mortgage Arrears (Justice.gov.uk)justice.gov.uk
- Guidance · UK GovRepossession – help if you are struggling with mortgage payments (gov.uk)gov.uk
Legal disclaimer
This article is for general information only. It is a tool to help you find your way — not legal advice, and not a substitute for speaking to a qualified adviser about your situation.