What happens to someone’s mortgage after they die?

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Part 1

Notifying the mortgage provider of the death

There are around twenty-one organisations that you will need to contact and notify following a loved one’s death. You can notify several governmental organisations at once through the government’s Tell Us Once service.

One of the non-governmental organisations that will need to be notified is your loved one’s mortgage provider. You should contact them by phone or email as soon as possible after the date of death and inform them of your circumstances and how the property was owned: solely by the deceased, by joint tenants, or by tenants in common.

The sooner you begin communicating with the mortgage provider, the sooner they can decide. The period after a loved one’s death is extraordinarily stressful, made worse by the many responsibilities you must undertake. If you can get a head start on these tasks, you will thank yourself in the future.

If this sounds like too much stress for you during an already difficult time, you might consider hiring a probate solicitor or service such as Kwil to take care of these responsibilities for you. With our full estate administration service, we will handle everything from the probate application to the distribution of assets, and we will communicate with mortgage providers on your behalf so that you can rest assured that your loved one’s estate is being handled with care.

Part 2

What happens to the mortgage?

If you owned your property as joint tenants with someone who died, the property will automatically be passed on to you. If there is an outstanding mortgage and you can afford to take it on, the mortgage will likely pass on to you as well. The same is true if the property was owned solely by the deceased and is due to be inherited by someone who can afford to take the mortgage on.

If the property is due to be transferred to someone who cannot afford to take on the burden of an outstanding mortgage, it is likely that the property will have to be sold and the equity released into the estate.

Ultimately, what happens with the mortgage is down entirely to the mortgage providers, and they can make this decision at their own discretion.