mortgage payments if partner dies

if you're sharing a mortgage, what generally happens if your partner dies?
What's it going to be, eh?

Replies

  • SKIPPYSKIPPY Forumite
    294 Posts
    Part of the Furniture 100 Posts Combo Breaker
    Forumite
    Providing you have insurance the mortgage gets paid off by this. If you have an endowment mortgage, this policy pays it off. If you have a repayment mortgage you should also take out an insurance policy which will pay off the mortgage should anything happen to either one of you.
  • ailuro2ailuro2 Forumite
    7.5K Posts
    Part of the Furniture Combo Breaker
    we chose not to have this insurance because our mortgage had become so low, and we have good death-in-service benefits from our employers should the unthinkable happen. We then put the extra money towards paying off the mortgage quicker.

    Everyone's circumstances are different, though, so think carefully.
    Member of the first Mortgage Free in 3 challenge, no.19
    Balance 19th April '07 = minus £27,640
    Balance 1st November '09 = mortgage paid off with £1903 left over. Title deeds are now ours.
  • Trying_to_be_goodTrying_to_be_good Forumite
    2K Posts
    Part of the Furniture 1,000 Posts
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    The important bit is that the mortgage still has to be paid - an insurance policy or death-in-service benefit may cover the liability but otherwise the mortgage still has to be paid. (Some lenders I think used to charge Early Repayment Charges if the mortgage was paid off due to death, but I hope have stopped now)
    Mortgage Free thanks to ill-health retirement
  • getmore4lessgetmore4less Forumite
    46.8K Posts
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Forumite
    That will depend on how the mortgage and ownership have been set up.

    The living person becomes liable for the debt if there is no provision to pay it off, insurance etc or the estate cannot pay its share.

    The house may not automaticly go to the living person, it may be come part of the estate of the dead person so they may need to buy the equity if they want to keep it.
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