Published 8 February 2018 · Last reviewed 1 May 2026
What happens to a mortgage after the death of a family member?
Existing lender wanting their money back on a property and don’t want to sell we can help.
Mortgage Lenders can show their ruthless side in the event of death and an inherited property but what can you do if you need to mortgage a property left to you. Factually they can call the repayment in if the deceased was the only applicant. Sometimes the time constraint is unrealistic and forces a quick sale at a “fire sale” price. This can be financially unpalatable on top of the misery and stress of losing a loved one so it’s vital you speak to the right mortgage broker if you need advice on Mortgage for an inherited property
If you want to mortgage a property left to you the first place to start is by contacting the existing lender and finding out your options some can be very good others not so flexible.
The Lenders’, in my experience by speaking to clients, that are the most inflexible are those that have had hardship themselves, such as those that sold on their mortgage books to a third part administrator who are fundamentally tasked with maximising profit and reducing their debt liability.
The names that have been mentioned to me in this regard include Mortgage Express, GMAC RFC Victoria Mortgages, Mortgages plc, DB Mortgages, Amber Homeloans, Preferred Mortgages and SPML. And to be fair, ultimately it’s their prerogative to run their business how they see fit but greater breathing space before the court is engaged would appear to be a more sensitive approach.
Anyhow, the good news is I have helped customers with these foreclosure threats. Transferring the finance into their names so that the property can be kept.
The process is a little complex but is proven and I will take time to explain all the steps and costs involved before any commitment is made. In fact, I’ll go a stage further and not charge a penny until the funds are released and the existing lender is paid off.