mortgage on joint account

[londonandwhere]

I have a joint account with my husband. All our income come into our joint account and all direct debits are debited on the same account including direct debits for mortage on my husband's name.

Because we reply on his income 100% for our living, I was a bit concerned what would happen to his debts or bills on his name if my husbands died. The bank confirmed I would have an authority to cancel all our direct debits. We dont live in this property so I would want to return it the lender if it happened.

I understand I dont have liability to pay his direct debit anymore once I cancel it? And I dont need to pay his outstanding mortage as well? If the lender take his property and sell it at lower price than outstanding mortage, they wont come to me to chase, will they?

Can I move all they money on joint accout to my sole account once I cancel all direct debits? Then I guess it's best to take the process of changing to joint name to my sole name.

Sorry to give you too many questions, I'd appreciate if you would be able to answer any of the above questions!

We have a life insurance on his name but I dont think I will use it to pay off his mortage and it could not cover the whole mortage depending on when I receive due to deceasing term policy.

Although no one can bequeath their debt to another, the debts of an estate are settled out of the assets of the estate. Therefore although you can walk away from the mortgage, and the life policy proceeds might be payable to you if you are the owner (you'd have to check with your IFA/insurance broker), you can't take any of your H's assets on his death and expect the mortgage company for suffer the shortfall on sale.

Are you planning to bump him off then?

titchy, No. I just was scared to be left alone with debts if my husband would die. That's all.

Thank you Collaborate, ''If you are the owner'', did you mean the owner of the property?

Well you won't have any debts, but then again neither will you have a big lump sum from him life assurance to spend.

As an aside you really both ought to have enough life cover to cover the mortgage/childcare costs.

Oh and it is NOT simple to just hand the keys back to the lender I'm afraid. Is it rented out if you don't live there?

It's been on sale for a while but due to lease extension problem we have been struggling to sale although we've had a few buyers. If we dont sort out lease exteion, would the mortage lender still be able to sell it?

Oh they'll be able to sell it alright, everything has a price. It just won't be a high one that's all.

The owener of a life or endowment policy is the person entitled to receive the proceeds in the event of a payout. Sometimes this is the deceased (or rather their estate) and sometimes it is a 3rd party (usually a family member).