Partner passed away, maturity ends june 2012 not sure how to deal with situation?

Collie_Collie

Dear Chelsea503,
I was in a similar position to you about 18 months ago.
It's a terrible time and I send you my condolences.
I know how it seems that suddenly, when you can hardly function from shock and sadness, you are faced with making sense of these riddles.

It sounds as if you may be assuming the worst. I'm assuming you wish to stay in the house. (Possibly a way to raise your income may be to rent out a room? There is a special scheme ... Although you may not really want a stranger around at the moment.)

Did your partner use an accountant or bookkeeper? It sounds as if first you need to establish the facts but with just potentially 18,000 outstanding on a 4bedroom house, and given the circumstances I'd hope the bank would offer you at least a reasonable alternative or breathing space for a while until you have probate etc finished.

When you speak to them, perhaps take along your bookkeeper or an accountant if you feel unsure the bank is really looking after your interests.
If you pay someone they should look after your interests, if they work for the bank well, listen but be cautious.

My own experience with banks and insurance companies immediately after my partner's death was not good and I felt they just wanted to know what my situation was so they could target any money I might have. One bank was helpful and honest, one was not so be cautious and get a second opinion before you sign anything but first collect all the facts and find out what your situation really is, what the options are and then take your time to decide.
A bank having a special department to deal with recently bereaved people is no guarantee of good treatment. But some banks are good.

Gather the facts, analyze the situation or get someone else to.

Perhaps you are entitled to bereavement or widows pension?
http://www.widowspension.org.uk/
http://www.findlaw.co.uk/law/estate_...aved/8776.html

And this organisation gives advice about financial matters after a death.http://www.bereavementadvice.org/about-us.php

Local hospices also often have volunteers not just for psychological support but for financial and tax planning after a death even if they were not involved in your situation.

I hope perhaps something here might help you. Be gently with yourself and dont be forced into making decisions.

jamesd

The mortgage lender will not look to repossess immediately if there is a shortfall. Instead they will see if it's possible to set up a reasonable replacement mortgage at a level of repayments that would be affordable to you long term. Given your circumstances they may accept extending interest only terms for a while until the situation becomes clearer. Possibly less for a while. The amount owed on a four bedroom house will be a very low loan to value so there is ample safety margin for them to give you time to sort things out.

If you haven't already let the mortgage company know the changed situation, do tell them and let them know that you're working through your options and whether you have any requests of them at the moment. It's good to communicate with a mortgage lender even if nothing is changing immediately. Ask them what options they can offer to you should you need them later.

Don't immediately use any payments you get to clear the mortgage. It's likely to be in your best interest to have a replacement mortgage on repayment terms or even to move. It's also important that you do retain a significant emergency fund.

Do answer the questions from dunstonh. Part of what you need to be sorting out is what the life assurance element will pay, if anything. Was the policy in one name or both? If one name, yours or your partner's?

You should expect that most people you deal with will be understanding and helpful in this situation. Not for unlimited time, but for long enough for you to sort things out.

Longer term you might find that you prefer not living in a place with so many memories. Not something that you need to think about today, don't be surprised if it happens eventually, though. It may happen, or not, people differ.