Advice with Mortgage Review after death of spouse

moneymanager

My parents took out a mortgage about 15 years ago. They basically took it out on a housing executive house they had been living in for years. Their mortgage was interest only. Unfortunately my dad passed away 11 years ago and mum has just never contacted them to inform them. I think she was afraid to. Also unfortunately at the time they could only afford to take out insurance on one of them and mum decided to take it out on herself. So she still is left to pay the mortgage. Mum got help with paying the interest of her mortgage but that has all stopped now so she is has to pay her interest herself which is fine.

However she is now really worried that she has not put anything to her capital so a few weeks ago I contacted the providers to ask them for a new deal on the interest rate so that she is paying less to allow her to pay some overpayments. She just wants to do this for a while so that she can afford to go repayment when she can afford to. To cut a long story short, they need to do a mortgage review which we have been told that she needs to bring her ID and also a pension statement for both her and my dad.

I just want to know if I told them my dad has passed away will this affect her mortgage review? She wants to pay more than she already is but we are afraid that they will reprocess the house because there is no income from my dad. My mum is 73 years old.

We are based in Northern Ireland.

silvercar

They can't repossess if your Mum has kept up with repayments.

The mortgage review should look at her income and how much she can afford. They may encourage her to move to a repayment mortgage to ensure that the mortgage is cleared at the end of the term.

ACG

Your dad passing away will not affect the Mortgage.

Who is the Mortgage with? A broker may be able to switch the product with less hassle than the bank.

moneymanager

Its with Halifax.

It's not that she can not make the payments its just that at the moment she can't afford what the repayment monthly payments are. At the moment her interest rate is 3.99% and going up to 4.24% as of the 1st of September which would bring her monthly payments to approx £83. When I asked for a new deal they were giving me it at 2.74% and monthly payments would go down to £53 and she planned on paying an extra £50 on top of that as an overpayment. She currently has a credit card which will be paid out in a year or so and plans on adding that to the overpayments too.

I am just off the phone with her and she has told me she has informed them that he has passed away and they just said to bring his death certificate.