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What will happen to my mortgage if I die without life insurance?

If you still have a mortgage when you die, it doesn’t simply get wiped. Any debts you owe need to be paid off and, usually, the money for that comes from the deceased’s estate and/or their life insurance policy.

When you don’t have life insurance, your mortgage still needs to be paid as a matter of priority – before any beneficiaries of your will receive any assets. You may find that your possessions need to be sold in order to clear the debt. If someone directly inherits your property, they’ll still need to be financially secure enough to continue paying your mortgage.

If there aren’t enough funds in your estate to cover your mortgage, then your lender may request your house is sold on the market in order for them to recoup the cost. Alternatively, your lender may freeze repayments until a person is appointed to deal with the estate.

Many people have a joint mortgage with someone else; in this situation your partner is still liable to continue paying the mortgage. They may be required to remortgage the property or sell any assets you have in order to keep up with repayments. In some cases, if the debt can’t be paid off then they may be required to sell the property.

It’s important to note that each mortgage lender will have their own procedures in place for when someone passes, so it’s therefore best they’re notified about the death as soon as possible.

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