Nationwide to add late husbands loan & c/card balance to mortgage,advise please.

Sophie44

Hello there...I am new to this website so please excuse any errors! My husband sadly passed away 8 weeks ago leaving a mortgage balance with Nationwide (in his name) of £15,500. He also had a loan of £5,000 with them and a credit card also with Nationwide with a balance of just under £1,000. He has left the house to me in his Will and once Grant of Probate has been granted I will be able to sell the house as Executor. However, with my son and daughter in laws help we were hoping to be able to repay the mortgage. Nationwide have now contacted me saying they will add the loan balance and credit card balance to the mortgage which makes it almost impossible for me to repay as I am almost 68 years of age.
Can anyone please advise if Nationwide can do this as the loan was an unsecured loan.....how can they add it to a secure mortgage loan? also the credit card, how can they add that as well especially as it could be that I would benefit from moving the mortgage arrears to another bank....what would happen then? As you can appreciate, I am finding this so distressing and worrying at a time when I cam still finding it hard to come to terms with losing him. Any advice would be welcome please....many thanks.

Hanky_Panky

My condolences at this very difficult time for you.

To try and answer your questions - there are two possibilities:
1) They may have what they call an 'All monies charge' - essentially this means that whatever money is owed by your late husband 'can' be included in the charge on the property and therefore has to be paid off.
2) Any debt owed should be settled from his estate and presumably there is some equity in the property. I'm not certain about this one though as I also believed that when passing directly from husband to wife the property doesn't form part of the esatate so you may be able to fight this one.

Whichever way this goes I wish you the best of luck.

Sophie44

Thank you so much for replying Hanky. I think you may well be right regarding your 2nd point as I have heard from another credit card company that they are not interested in the house left in which the widow lives. I suppose the best thing I can do for now is obtain a copy of the original agreement/contract my late husband signed with them then seek advice. I am supposing that Nationwide must be able to do what they propose, can't see they would say such a thing to me if it wasn't possible. So if I choose to move the mortgage owed to another mortgage provided will this still include the loan and credit card debt....many thanks.

fannyadams

Condolences to you and your family at this difficult time.
Forgive my ignorance but I thought that if you died then the mortgage got paid off by some kind of life insurance thing (which I thought you HAD to have to have a mortgage).
I hope you can get this sorted out.
{{{{Sophie44}}}}

CLAPTON

You may need to get expert advice (maybe see a solicitor or CAB)

The unsecured debts need to be paid from the estate; the house forms part of the estate
The fact it's been willed to you makes no difference.

It would seem to me that N/W are being very reasonable in just adding it to the mortgage rather than demand it is paid immediately

CLAPTON

Hanky_Panky wrote: »

My condolences at this very difficult time for you.

To try and answer your questions - there are two possibilities:
1) They may have what they call an 'All monies charge' - essentially this means that whatever money is owed by your late husband 'can' be included in the charge on the property and therefore has to be paid off.
2) Any debt owed should be settled from his estate and presumably there is some equity in the property. I'm not certain about this one though as I also believed that when passing directly from husband to wife the property doesn't form part of the esatate so you may be able to fight this one.

Whichever way this goes I wish you the best of luck.

I think you may be confusing the situation where a property is owned as joint tenants; in this case the house would not form part of the estate for probate purposes
however that wouldn't necessarially mean the unsecured debts couldn't be pursued.

kingstreet

The deceased's debts, whether secured or unsecured, should be cleared from his estate. All assets held in his sole name form part of his estate, so the property should be sold by the executor and all debts and Inheritance Tax cleared.

Once that has taken place, the net value of the estate is distributed among the beneficiaries.

As Clapton says, the property would not form part of the estate if it was jointly owned (joint tenancy) with the spouse. If it is soley owned, it would.

PhishFood_2

kingstreet wrote: »

As Clapton says, the property would not form part of the estate if it was jointly owned (joint tenancy) with the spouse. If it is soley owned, it would.

I think it depends on what is in the title deeds and whether there is a survivorship clause. My friends Mum passed away recently, she left her half of the house to her son in her will, his Dad still lives in the house. The 1/2 value of the house formed part of the estate for the purposes of probate, even though the house was jointly owned and the spouse was going to continue to live in the property.

If there had been a survivorship clause in the title deeds then this would have invalidated the will. Well this is what the solictor said anyway.

OP, my condolences on your loss. I think the best bet would be for you to get legal advice.

CLAPTON

PhishFood wrote: »

I think it depends on what is in the title deeds and whether there is a survivorship clause. My friends Mum passed away recently, she left her half of the house to her son in her will, his Dad still lives in the house. The 1/2 value of the house formed part of the estate for the purposes of probate, even though the house was jointly owned and the spouse was going to continue to live in the property.

If there had been a survivorship clause in the title deeds then this would have invalidated the will. Well this is what the solictor said anyway.

OP, my condolences on your loss. I think the best bet would be for you to get legal advice.

a joint tenancy means that both parties own the property jointly and severally ( like a joint bank a/c; both own everything and can spend everything in the a/c)

so half the house can't be left to anyone else as it is already 100% owned by the survivor


in your circumstances it looks like the house was owned as tenants in common ; this would allow half the house to be left to some-one other than the survivor

in any case, it looks in this situation that the house was solely owned by the deceased.

PhishFood_2

CLAPTON wrote: »

a joint tenancy means that both parties own the property jointly and severally ( like a joint bank a/c; both own everything and can spend everything in the a/c)

so half the house can't be left to anyone else as it is already 100% owned by the survivor


in your circumstances it looks like the house was owned as tenants in common ; this would allow half the house to be left to some-one other than the survivor

in any case, it looks in this situation that the house was solely owned by the deceased.

Must just be the different terms that are used, his parents definitely jointly owned the house and half the house definitely passed to him as I helped fill out the confirmation forms, which was granted. Maybe it's different in Scotland? The solicitor only said we needed to check for a survivorship clause and there was none, this was just a few months ago.

Anyway, off topic as you say.

bankhater_1965

Sophie44 wrote: »

Hello there...I am new to this website so please excuse any errors! My husband sadly passed away 8 weeks ago leaving a mortgage balance with Nationwide (in his name) of £15,500. He also had a loan of £5,000 with them and a credit card also with Nationwide with a balance of just under £1,000. He has left the house to me in his Will and once Grant of Probate has been granted I will be able to sell the house as Executor. However, with my son and daughter in laws help we were hoping to be able to repay the mortgage. Nationwide have now contacted me saying they will add the loan balance and credit card balance to the mortgage which makes it almost impossible for me to repay as I am almost 68 years of age.
Can anyone please advise if Nationwide can do this as the loan was an unsecured loan.....how can they add it to a secure mortgage loan? also the credit card, how can they add that as well especially as it could be that I would benefit from moving the mortgage arrears to another bank....what would happen then? As you can appreciate, I am finding this so distressing and worrying at a time when I cam still finding it hard to come to terms with losing him. Any advice would be welcome please....many thanks.

were you a 2nd cardholder user on the cc ?