If a loved one has passed away, it is useful to understand what happens to their debts, including and most importantly any mortgages.
There are lots of variants to consider, such as who was on the mortgage, who legally owns the house – how is the house owned, what were the instructions of the deceased. Most importantly, when you purchase a house it’s important to review the insurance available to you to protect your loved ones from dealing with these questions.
Upon the death of a sole mortgage holder, it’s likely the mortgage lender will want the mortgage redeemed, paid back and in extreme circumstances this can mean the sale of a family home.
It’s important now more than ever to ensure that when to take out a mortgage, you think about the other side. How would it be repaid? Who would have to repay it? How would they afford it?
If you are a joint mortgage holder, think about how you would manage if your partner were to pass away during the term of your mortgage, or how they could manage if you passed away.
Not always the nicest of conversations, but a little bit of planning and understanding now can put you and your family in a secure position in the future should something happen.
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