Bereavement guide for mortgages

Dealing with a loved one's mortgage

One of the most difficult and stressful periods in anyone’s life can be the loss of a loved one. Having to deal with the estate and taking care of financial affairs can add to the worry and stress at an already difficult and emotional time. We’ve put together a practical Bereavement Guide of steps to take following a bereavement.

The process of dealing with a loved one's mortgage or savings account with us differs. You can find our savings bereavement guide here. 

Here's what we need and the process:

Firstly, you'll just need to notify us. Call us on 0345 601 3344 or visit your local store to let us know about the death and your relationship with the deceased. We'll add a notification to the account and add your details as our registered contact. We may not be able to discuss the details of any account(s) they may hold with us, until we’ve received the death certificate, due to data protection.

After you've notified us, we’ll need to see the death certificate within the next three months. There is no need for us to see the will.

The Cambridge or your Solicitor will then notify the Land Registry of the death and they will update the title deeds to reflect this.

We'll send you a confirmation letter detailing how the mortgage is held at the Land Registry (whether this is in sole/joint names or tenants in common) and if there is a physical pack of deeds or a live endowment policy in place.

 

For joint accounts

The mortgage will automatically transfer to the remaining account holder(s) and the deceased's name will be removed from the mortgage account.

The remaining account holder(s) are responsible for continuing to pay for the monthly payments. We understand that this is not always possible and therefore our team are on hand to discuss what options are available to support you.

 

For sole accounts

Our Financial Support team will stay in contact with the registered contact on the account and the executor(s) or administrator(s) once the Grant of Probate or Letters of Administration have been issued.

We understand that this is a difficult time and want to support you during this time. Once we've been notified of the intentions of the property, whether it be sold or kept - we'll help put a plan in place. If a beneficiary wished to keep the property, they must repay the mortgage in full by securing new funds or a new mortgage in their own name.

You may need a mortgage redemption statement dated as the time of death. We can provide this to the registered contact or solicitor upon request.

Please note:

• Interest will continue to be charged at the current product rate and will be added to the mortgage balance until it's repaid.
• The executor or administrator is responsible for settling the estate, including repaying any debts. Once a grant of representation is issued, the full mortgage balance must be repaid.

 

You'll need a redemption statement detailing the closing balance and instructions for final payment. If the property is being sold or a new mortgage is being taken out by a beneficiary, this will usually be completed by the solicitor dealing with the sale.

We understand that administering an estate can take time - if the mortgage cannot be repaid immediately, please get in touch so we can discuss your circumstances and explore your options.

If no one is available to manage the estate, please inform us as soon as possible. This allows us to take steps to protect the property, which is an asset of the estate.

 

For tenants in common

The deceased’s name will remain on the mortgage account until the account is redeemed. You may wish to discuss this further with the Solicitor dealing with the estate.

If you were looking to add a holder to the mortgage account, we would put you in contact with one of our Mortgage Advisers to discuss your options.

 

Contact us

We are on hand to help you with any queries or worries you may have. Just call our team on 0345 601 3344 or pop into your nearest branch and a team member will be happy to help.