A Default Notice (DN) is a legal document issued by a lender to a borrower in the UK housing market in order to initiate legal action against them for failing to repay a loan or mortgage. It is a formal warning that a borrower has failed to comply with the terms of their loan agreement and that the loan should be paid in full within a specified period of time, usually 14 days. The purpose of a Default Notice is to give borrowers a chance to pay back their loan before the lender takes further action, such as repossession of their property, to recover the money owed. The scope of the Default Notice applies to all types of loan agreements, including mortgages and secured loans, and is designed to protect the lender’s rights while giving borrowers the opportunity to avoid more serious legal action.