Widowed & no mortgage insurance

Formyfriend

My friend is over 60, doesn't work & is just recently widowed. Husband hasn't left a will or savings.
There's 10 years left on their joint mortgage but after visiting the mortgagee with his death certificate, she has discovered there isn't an insurance policy in place to cover it.
Bu Soc has said she can extend the mortgage to reduce the payments but she will still have to pay it off.
She has a very small amount in savings, which will have to be used to pay for his funeral & no income other than a small pension.
What should she do?

CloudCuckooLand

Sell and downsize ?
Sell and rent ?
Get a job and try to keep it ?

beecher2

That's about the only three options I can think of too.

notisis

Does your friend claim pension credit? Or any other benefits? If so, she should investigate if she is entitled to anything further. It may well be she can claim support for mortgage interest which would at least pay something towards the mortgage. Take a look at the Benefits and Tax Credits board as to what she may be entitled to.

CloudCuckooLand

Wouldn't it be ageist not to offer beyond retirement ?
Not actually clear if it is beyond retirement on second read.

Any death-in-service/pension for the deceased needs checking out.

noh

CloudCuckooLand wrote: »

Sell and downsize ?
Sell and rent ?
Get a job and try to keep it ?

Rent a room to a lodger?

maninthestreet

How big is the mortgage?

Wh05apk

A final resort could be equity release if she does not want to move, and there are no other options.

serious_saver

As Cloudcookoo has said she should definitely check his pension if he was still working. In the mean time should should contact the lender and explain that she cannot guarantee to meet the payments. They will then be fully aware of the situation and she may be able to negotiate a mortgage break or temporary reduced payments.

My OH's gran was in a similar situation when her husband died but they were able to take further action because they had been badly mis-advised. They were led to believe that the mortgage was was for 10 years when actually it was 25! She is 82 now and would have been paying it off until she was 93. We still haven't figured out why any lender would want to give a couple in their 70's a mortgage at all let alone a 25 year one. I suppose it's an example of the recklessness that went on in the boom.

Formyfriend

No benefits at all but good advice, many thanks notisis

Wh05apk

serious_saver wrote: »

We still haven't figured out why any lender would want to give a couple in their 70's a mortgage at all let alone a 25 year one. I suppose it's an example of the recklessness that went on in the boom.

Why not? if they have the pension income to support it, are you saying lenders should not lend beyond a certain age?