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Mortgage Company refusing to accept redemption on deceased mortgage.
eh2nt
Posts: 8 Forumite
Hi. I wonder if any one can offer some advice please.
My mum passed away leaving a very small mortgage £6k outstanding. The mortgage is accruing interest at around 83 pence a day so not a huge amount but works out at nearly 5% interest. There was no will so i will be sorting out the letters of probate / administration and the estate is below the Inheritance tax threshold. I'm fortunate enough to have some savings (not paying 5% interest) to be able to pay the mortgage off and have them release their charge. We can then decide what to do with the property sell or rent at our leisure. When i phoned them today to make the payment they are refusing to accept a payment until i get the letter of probate /administration. Not sure how they can refuse payment and continue to charge the estate interest? There are no fixed rates or anything just a bog standard variable rate. Can anyone help please? Thank you
My mum passed away leaving a very small mortgage £6k outstanding. The mortgage is accruing interest at around 83 pence a day so not a huge amount but works out at nearly 5% interest. There was no will so i will be sorting out the letters of probate / administration and the estate is below the Inheritance tax threshold. I'm fortunate enough to have some savings (not paying 5% interest) to be able to pay the mortgage off and have them release their charge. We can then decide what to do with the property sell or rent at our leisure. When i phoned them today to make the payment they are refusing to accept a payment until i get the letter of probate /administration. Not sure how they can refuse payment and continue to charge the estate interest? There are no fixed rates or anything just a bog standard variable rate. Can anyone help please? Thank you
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Comments
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I believe that is standard practice and according to the article in the following link it is a legal requirement to obtain probate / letters of administration before an administrator can pay of the mortgage.
https://www.thisismoney.co.uk/money/experts/article-2853209/My-mother-died-unexpectedly-leaving-unpaid-mortgage-house-meet-repayments-sell-it.html
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