Law of Property Act 2000
106Mortgagee accepting interest on overdue mortgage not to call
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106 Mortgagee accepting interest on overdue mortgage not to call up without notice (a) the mortgagor has made default in payment of the principal sum at the expiry of the term of the mortgage or a period for which it has been renewed or extended; (b) the mortgagee has accepted payment of interest on the sum for a period of not less than 3 months after the default was made; and (c) the mortgagor continues to perform and observe all covenants expressed or implied in the mortgage other than the covenant for payment of the principal sum, the mortgagee is not entitled to: (d) take proceedings to compel payment of the sum or for foreclosure; (e) enter into possession; or (f) exercise a power of sale, without giving to the mortgagor not less than 30 days notice of the mortgagee's intention to do so. (2) No purchaser from a mortgagee exercising the mortgagee's power of sale is to be concerned to inquire whether the mortgagee has accepted interest because of a default referred to in subsection (1). (b) applies only if default has occurred after the commencement (c) has effect despite any term of a mortgage to the contrary.