What happens to your mortgage when your spouse dies?
When your spouse passes away, your mortgage can take a whole new shape. Read on to find out what to do, if the worst should happen.
The passing of your partner or spouse is never an easy time and will require you to carefully adjust to your life without them. One aspect you may have to readjust is your mortgage. However, if you’ve found yourself in this situation we’re to help. Read on for any mortgage and remortgage advice that will help make your current situation a little easier from our expert mortgage advisers.
Firstly, we recommend that you speak to your mortgage lender so that they are aware of your spouse’s passing and how this may affect your finances. This can also have a large influence on the remortgage advice that they will offer. This is largely because your mortgage payments may be significantly to pay by yourself. Once you have received advice from your mortgage lender then it’ll be time for you to make a plan of action. Here’s what you can do.
Consider what options your lender has given you:
In normal circumstances, a mortgage is one of the first debts that will be settled out of the estate once someone has passed away. Alternatively, if you have life insurance or mortgage payment protection insurance this can also be utilised to settle any outstanding mortgage payments.
However, if you’ve read that and are left racking your brains thinking that you still won’t be able to cover your mortgage then don’t worry. We’ve got you covered. One option for you to consider is to get some remortgage advice and take out a mortgage in your own name.
While you won’t be able to simply transfer the mortgage that you’re currently on into your name, there are options for you which can make the process much more simple. For example, you may have to go through a review process like you would do if you it was a fresh mortgage application. Your lender may be able to assist by extending your loan term or switching you to an interest only payment option for a short term.
What will the review process involve?
First of all you’re going to need to prove evidence of all of your finances to your lender. This will be vital for them to give you the right remortgage advice. Then, once your lender has assessed your finances and your ability to keep up your repayments then you can work on a plan to start your new mortgage application.
Alternatively, if you’re still unable to pay for your mortgage then you may have to sell your home to pay off the existing debt.
We know this probably sounds scary and being backed into a corner to potentially sell your home isn’t what you had in mind. However, as we said earlier, we’re here to help you. At Mortgages Online we can offer free, objective advice on the property market. This means that if you’re looking to remortgage then we can compare a whole host of mortgage deals from different lenders for you. All you have to do is either get in touch with us or check out some of the articles on our website. It’s really that simple.
At MO, it’s our aim to make understanding mortgages easier. So, we have tonnes of resources on mortgage advice, interest rate rises, remortgage tips, information on bad credit mortgages, standard variable rate and offset mortgages and so much more. Our mortgage search tool and articles are all free for you to use, so put that credit card back in your wallet! We’re here to offer the ideal mortgage deals for you which, ultimately, saves money for you. Find out how Mortgages Online can help you.