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    What happens to my mortgage if I die?
    • #1
    • 31st Dec 08, 9:17 AM
    What happens to my mortgage if I die? 31st Dec 08 at 9:17 AM
    Settle an argument for me....

    I own my flat, solely in my name and have a mortgage. The flat is currently in negative equity.

    Mentioned to OH last night that I never bothered with life assurance to pay out the mortgage if I die, because I was single and if I died the flat could just be sold - it's not like my mum would have wanted it.

    He said that with it in negative equity, if I died they could chase my family for the debt.

    I said no way - personal debt (not (a) in joint names or (b) with a guarantor) dies with you. They'd sell the flat, take any other cash etc I had, but if there was any shortfall HSBC would have to lump it.

    He said, so if the flat had equity your family would get it but if it has negative equity the bank lose out? I said yep. He said that doesn't seem fair to the bank. I wasn't too upset by that fact. :rolleyes: If I banked with George Bailey maybe I'd make provisions for if I died but I think HSBC can handle a £5k or so loss. I also said it'd serve them right for being stupid enough to give me a 100% mortgage near the top of the market.

    I'm sure I'm correct on this, because ISTR when I bought my flat asking on here what would happen if I died and there was a shortfall. My mum had asked before I bought lol. But just checking - anyone know?

    I also said that if someone got themselves into £50k worth of credit card debt (again in sole name) and then topped themselves their poor family wouldn't have to stump up the cash, and same applied with the mortgage.

    Carrying it on a bit - OH moved in in November. Under cohabitation law, if I died after say a year, even though everything's in my name would he ever become liable for that debt? He pays half the mortgage and bills - just gives me a lump sum each month and I pay all the bills myself.
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