Does a Mortgage Die with You?

Mortgage may literally mean death pledge, in a medieval concoction of Latin and Old French, but it doesn’t go away when you die.

Some lenders are happy to suspend repayments while personal representatives wait for the grant of probate. But be aware that some companies do insist on receiving their monthly instalments regardless of the situation. If it’s the latter, ways may need to be found to raise the money to continue the payments.

Whatever happens, though, the debt has to be repaid from the estate. If there is a mortgage on a house, the person legally entitled to dispose of the deceased’s money and property needs to write to the bank or building society concerned with full details and enclose a copy of the death certificate.

The personal representative, whether it be either an executor or an administrator, should ask for a statement of the outstanding value of the mortgage. If the deceased had life assurance or a mortgage protection policy, this needs checking to see if it covers the repayments and whether there is a surplus.

For professional help with the probate process, contact Heritage Will Writing on 02380 879243.