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Mortgage & Title Deeds after death of a Spouse

(9 Posts)
LondonSuperTrooper Wed 15-Jun-16 10:31:52

Hello, this is a bit long so please do bear with me.

My father very sadly passed away recently. He & my mum had a joint mortgage which is still outstanding & the title deeds is in both of their names. My family are now saying that the existing mortgage arrangement cannot continue as my mum has to be reassessed on whether she can get a new mortgage. My mother doesn’t work and her only income is her pension. My father has left her well provided but unfortunately it seems that all his account are in brother’s name & I’m pretty certain that the mortgage company will not accept this. I have been to the bank with her & informed them of his passing and transferred the direct debit so she’s paying it now (& has done for the past 2 months).

My family now think that the bank will not accept this arrangement & have booked an appointment with the mortgage provider at the bank hmm My brothers want to take out a mortgage but keep the title deeds in her name as they feel that this is the only solution. I am pretty uneasy about this. Can they claim ownership if the title deeds are in my mum’s name? Will the bank accept such an arrangement? Legally, can they claim ownership should (God forbid) my mum passes away?

HopeArden Wed 15-Jun-16 10:39:37

I thought that with a joint mortgage ownership passes to the survivor automatically. I would think that so long as the mortgage continues to be paid the mortgage company are unlikely to care who by - their priority is repayment of the mortgage. The mortgage is owed by both your parents, not just your dad. I do not think your family should be making appts with the mortgage co without the full involvement of your mother and would be very surprised if they could actually discuss your mothers mortgage without her express permission. Why did your dad leave his accounts to your brother?

MarlowWills1 Wed 15-Jun-16 11:03:27

I'm sorry for your loss. Agree with HopeArden. On the presumption that the property was held as joint tenants, your mother is the sole owner now.

If there was any life insurance, it would usually be used to clear any outstanding mortgage. Was there any insurance?

It's very odd that your dad's accounts were held in his brother's name, why was that?

CuntingDMjournos Thu 16-Jun-16 09:13:24

I'm puzzled by the statement that your Dad left your mum well provided for yet didn't leave sufficient to repay the mortgage which is common. It's very usual to have life insurance to cover the outstanding mortgage on death - and it used to be a compulsory condition of mortgages, that there was sufficient life insurance and used to have to be assigned to the mortgage co ie earmarked to lay the mortgage although that may have changed - did he not have any?

CuntingDMjournos Thu 16-Jun-16 09:13:57

If your brothers are going to pay a mortgage they may get a beneficial interest in the property yes

HopeArden Thu 16-Jun-16 10:01:35

If they are paying the mortgage from your dad's accounts perhaps your mum should speak to a solicitor about whether the will should be challenged. Hard to say without knowing your family circumstances but did he leave assets to your brothers which might be considered marital assets and therefore your mother's property by rights.

LondonSuperTrooper Thu 16-Jun-16 15:04:53

Hi all,
Many thanks for your replies- really appreciate it. I promise to respond to all your queries tonight- currently I'm at work with a tight deadline.
Thank you

LondonSuperTrooper Fri 17-Jun-16 13:16:47

Hi all,

Thanks again for your replies. I'm very relieved to say that the bank hasn't asked my mother to apply for a new mortgage. They are happy for mum to carry on paying it off as the mortgage has 2 guarantors one of which is me smile

MarlowWills1 Sat 18-Jun-16 10:38:40

Great. Now she really needs to get those accounts in her name!

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