Inheriting a mortgaged property

BillieS

My ex-husband, aged 59, has taken out a 30 year buy-to-let mortgage in order that he can leave something to our children (he doesn't own the property in which he lives). He does not intend to take out insurance (it is too expensive because of his age and because he is a smoker).
Given that house prices are currently falling, and if I understand correctly, mortgage payments pay off the interest before the capital begins to be repaid, I am concerned whether our children could be left with a debt? What if my ex-husband dies and the property is in negative equity?
Thank you.

glentoran99

BillieS wrote: »

My ex-husband, aged 59, has taken out a 30 year buy-to-let mortgage in order that he can leave something to our children (he doesn't own the property in which he lives). He does not intend to take out insurance (it is too expensive because of his age and because he is a smoker).
Given that house prices are currently falling, and if I understand correctly, mortgage payments pay off the interest before the capital begins to be repaid, I am concerned whether our children could be left with a debt? What if my ex-husband dies and the property is in negative equity?
Thank you.

They wont inherit the debt don't worry, If debts outweigh assets the debt dies with the person

Pixie5740

Mortgage payments don't pay the interest first and then the capital. Repayment mortgage payments pay the interest and a bit of the capital until eventually the capital is repaid. Interest only mortgage payments only pay the interest and a separate repayment vehicle is required for the capital.

If, when your ex-husband dies, the outstanding mortgage is greater than the value of the property your children won't be left with the debt, they might be left its nothing but not less than nothing.