Notifying a Mortgage Company of a Death
09 October 2019
If a homeowner dies and they had an outstanding mortgage, then it's important to notify the mortgage company of the death as soon as possible. We explain the simplest way to notify a mortgage provider of a death.
What Will Happen to The Mortgage after a Homeowner's Death?
When someone dies who had an ongoing mortgage, there are often questions around what will now happen to the mortgage. This may be of particular concern if there are other family members living in the house.
What will happen to the mortgage will ultimately be up to the mortgage provider to decide and this will often depend on the individual circumstances surrounding the matter.
If there is someone who is entitled to inherit the property and they can afford to take on the mortgage in their name, then the mortgage provider may agree to transfer the mortgage into their name. If the mortgage is held jointly as joint tenants, then when one owner dies, the property and the outstanding mortgage debt will transfer to the surviving joint owner. In other situations, the only option available may be to sell the home and release the equity into the Estate.
Ultimately, this decision lies with the mortgage provider, but the most important thing to do is to notify them of the death as soon as possible and open up a line of communication with them. They can then make arrangements for outstanding and upcoming mortgage payments and they will be able to explain what options are available.
So, how do you notify the mortgage company of a homeowner's death?
How to Notify a Mortgage Provider of a Death
When someone dies, there are a number of organisations and institutions that will need to be notified of the death. These include the deceased's bank, their utility companies, their insurance provider, their pension provider and their mortgage provider, amongst others.
On average, 21 separate organisations will need to be notified of the death. This will need to be done either via a phone call or by post, meaning that notifying each of these individual organisations can be arduous and time consuming. This will also come at a time when friends and family also need to be informed of the death, funeral arrangements need to be made and the Probate process is beginning, so there's a lot to think about.
But there is an easier way. With one phone call to our Bereavement Notification Service, our Advisors can notify all of these organisations for you. This service is completely free, and in addition to notifying organisations of the death, we can also:
- Stop unwanted junk mail from being sent to the deceased
- Help you to close down any social media accounts the deceased held
- Explain how to secure the property and ensure that it is properly insured
- Provide advice and guidance on the coroner and inquest process, if the coroner is involved
- Advise on whether Probate will be needed, and explain the first steps if so
This free service is designed to take away some of the stress you may be facing during what is likely to be a difficult time. So let us help you to navigate some of the practical matters that will need to be taken care of when a loved one has passed away.