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Original poster

Mortgage in DH name - future proofing

14 replies

funnyoldonion · 06/10/2023 18:20

Would be grateful for some advice! My husband has just taken a mortgage out on our house in his sole name. I couldn’t be added on due to currently being on a Debt Management Plan which started this Summer and will last til 2029. The plan is to add me on when we remortgage and my credit rating has recovered.

I just wondered if the worst happened and he passed away would i automatically continue to be able to live here with my children or would I have to take out another mortgage in my name?

Although there is 60k equity in the property, my credit rating / earnings probably wouldn’t allow me to do this.

So is it just a case of adding me on the deeds at the solicitors now or how would I ensure that in the event of his death my home would be secure? Thanks in advance!

OP posts:

Weedoormatnomore · 06/10/2023 18:34

Why don't you take out a insurance policy that would pay of the mortgage if he passed away.

Wibblywobblylikejelly · 06/10/2023 18:36

You would have to take on a mortgage independently.

Deeds and mortgage are two separate things. You'd have to plan how to continue to pay for the house if you wanted to stay there.

Defiantlynot41 · 06/10/2023 18:47

Has he got life insurance? A death in service benefit from work? And if so, is that sufficient to pay off the mortgage?

If not, or not enough, you need to take out life insurance on his life. Might also be worth looking at some life insurance for yourself too as he may not be able to continue to work or work his current job if anything happens to you.

Unless you are older or have health conditions, term insurance (for the term of the mortgage) can be pretty cheap

Original poster

funnyoldonion · 06/10/2023 21:01

Thank you for your replies. We are both 41 and he has life insurance and I don’t yet as I’ve had quite a few MH problems in the past that have made it tricky but it’s something I am looking to do ASAP.

He has death in service too and I do. So with those in place and if I myself go and get life insurance will that be enough?

OP posts:

PuttingDownRoots · 06/10/2023 21:07

Make sure DH leaves the house to you in his will!
have life insurance/death in service covering the balance of the mortgage so you can pay it off.

TicTacNicNak · 06/10/2023 21:14

We took out two policies with our mortgage - critical illness and life cover.

My husband has cancer so we've cashed in the critical illness. If either one of us dies, the life cover will pay off the mortgage balance.

I'd strongly recommend you look into some insurance.

Toooldtoworry · 06/10/2023 21:22

funnyoldonion · 06/10/2023 21:01

He has death in service too and I do. So with those in place and if I myself go and get life insurance will that be enough?

Make sure his life insurance is in trust with you as a named beneficiary.

Also make sure he has an up to date will and the house is left to you.

Mental health issues do not necessarily prevent a life insurance policy, but you may need to speak with a broker.

Clemally · 06/10/2023 21:26

Speak to a solicitor, I think that after 5 years of marriage all assets become assets of the marriage.

I know that I lost my first time buyer status as DH owned our home, it’s a complex legal matter!

Nix32 · 06/10/2023 21:28

You can still be on the deeds without being on the mortgage - that's the situation we're in. The mortgage is in my name but my husband is on the deeds.

Original poster

funnyoldonion · 07/10/2023 11:33

So the remaining amount on the mortgage is 90k over a 28 year term. His life is insured for another 21 years for 200k and we both have death in service at work.

So really would it not matter if I’m on the deeds / mortgage at all?

I will get life insurance and have asked him to make a will leaving the house to me. Does that cover us?

sorry I’m really not that good with these types of matters!

OP posts:

Brabraboo · 07/10/2023 22:41

@Nix32 Is this true for scotland? Currently trying to find out if I can be named on deeds without being part of the mortgage

TallulahG · 08/10/2023 19:48

Brabraboo · 07/10/2023 22:41

@Nix32 Is this true for scotland? Currently trying to find out if I can be named on deeds without being part of the mortgage

This is how it is for us, in Scotland. I'm on deeds but not mortgage.

Sparehair · 08/10/2023 19:58

funnyoldonion · 07/10/2023 11:33

So the remaining amount on the mortgage is 90k over a 28 year term. His life is insured for another 21 years for 200k and we both have death in service at work.

So really would it not matter if I’m on the deeds / mortgage at all?

I will get life insurance and have asked him to make a will leaving the house to me. Does that cover us?

sorry I’m really not that good with these types of matters!

Yes it does matter. If you’re not on the deeds you don’t own the house. If your husband died and left the house to someone else in his will you’d potentially be homeless and tbh there is no easy way to prevent him doing this as he could write a will tomorrow that you’ve seen and then change it the next day. The marital assets thing is only relevant if you get divorced, not if he dies. it might be possible to contest the will but would be stressful and expensive.

i’m unclear on whether you can be on the deeds and not the mortgage but if you can then you need to do this, ideally as joint tenants which means if he dies his share automatically comes to you- if tenants in common you own your share but he could still leave his share to someone else in his will.

ps this is England and wales.

LaviniasBigBloomers · 08/10/2023 20:06

I'm on both deeds and mortgage but we only used DH's income to do the mortgage affordability checks. I'm freelance and tbh it was more that I couldn't be bothered producing accounts etc.

You absolutely can and should be on deeds without being on mortgage to protect yourself. Life insurance should be enough to pay the mortgage off should one of you die. Critical illness is worth looking at but can be really expensive for what you get/and depends on sickness policy at your places of work if it's worth it or not.

And yes, make mirror wills.

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