When I was single and got my mortgage I had to demonstrate it'd be paid in the event of my death
I remember other friends having to do the same. Mortgage companies don't like the idea of the estate being unable to cover the cost of the mortgage which could easily happen if there were other debts, the property had fallen into disrepair etc. I guess it could depend on the lender though.
( garold you're on mute I SAID YOU'RE ON MUTE, Fri 20 Dec 2024, 12:01, Reply)

Depends on the lender
Interest Only mortages have 'sale of property' as a valid capital repayment plan, dunno why C&I ones can't have the same thing.

In any event, like I said, if the borrower dies and there's no TA in place then they just take possession and sell. Easier for all parties for that not to happen, and decreasing term is so cheap it's a no brainer

Still, these things do happen.
(Smegg Wallace The O.G. Q.R., Fri 20 Dec 2024, 12:07, Reply)

So, if there are greater claims on the estate than realisation of assets will achieve
how does it work? Wasn't anywhere near an issue with the estate I wound up as the mortgage was £40k, other debts about £6k and we got in £190k from death in service and a further £250k from the sale of the house.

If, say, the property had a mortgage of £200k, but had to be sold for £180k and there were £20k in debts, what happens then? I'm guessing there would be nothing to pay to the beneficiaries but what's the hierarchy of creditors? What if there were legal fees?

I'm just curious.
( garold you're on mute I SAID YOU'RE ON MUTE, Fri 20 Dec 2024, 13:09, Reply)

Dunno

(Smegg Wallace The O.G. Q.R., Fri 20 Dec 2024, 14:20, Reply)