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Occupiers deed of consent

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My wife and I need a small mortgage. We can only get a mortgage in my name and the mortgage Company requires my wife to fill out an occupiers deed of consent.
My question is  “if I die before the mortgage is paid, what happens to my wife”. Will she be able to stay in the house and still keep paying the mortgage or will the house have to be sold to pay off the debt.

Comments

  • user1977
    user1977 Posts: 17,789 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    edited 18 June 2021 at 10:58AM
    The default is that your executors have to repay your debts, so if your wife wouldn't be able to afford her own mortgage (and doesn't want to risk having to sell the house) you'd be better to get life insurance to cover the balance due. Doesn't have much to do with the deed of consent though.
  • If I die can she still just keep paying the mortgage so it’s not defaulted 
  • user1977
    user1977 Posts: 17,789 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    18101956 said:
    If I die can she still just keep paying the mortgage so it’s not defaulted 
    In practice she might be able to, but she won't be legally entitled to if she's not a joint borrower.
  • MWT
    MWT Posts: 10,214 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    In the circumstances you describe it would be far safer to make sure you have sufficient life insurance in place or other assets within your estate that could pay-off the mortgage.

    You cannot rely on the lender allowing her to take over a mortgage on which she is not listed as a borrower.
  • kingstreet
    kingstreet Posts: 39,256 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    The consent form has no bearing so deal with that and then;-

    write a will leaving the property to your wife
    write sufficient life cover in trust for your wife to repay the outstanding mortgage

    so she has both the legal and financial means of continuing to live in your home if you die.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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