Who pays mortgage payments during probate?

• Mortgage payments during probate are usually paid from the deceased person’s estate by the executor.
• If there is a joint mortgage, the surviving borrower may be responsible for continuing the payments.
• If the estate does not have cash available to pay the mortgage during probate, Provira’s Estate Advance can help executors access money to cover mortgage payments and other estate costs before probate is complete.

Mortgage payments during probate are normally paid from the estate, which means executors will need to manage the payments until the property can be sold.

When someone dies with a property as part of their estate, it can create a lot of financial pressure very quickly. And if there is still a mortgage attached to that property, things can feel even more complicated.

Some people may think that mortgage payments stop when someone dies. Unfortunately, this isn’t the case. The mortgage does not disappear, it becomes a part of the estate and needs to be dealt with as part of the probate process. This can put executors in a difficult position.

The estate may include a valuable property, but there may not be enough cash available to keep up with mortgage payments, insurance, bills and Inheritance Tax while probate is .

This is where executors can start to feel stuck.

If you are an executor struggling to cover mortgage payments or other estate costs before probate, Provira can help.

Our Estate Advance gives executors access to up to 50% of the estate’s net value within days, with no personal guarantees, no monthly repayments and no need to use personal collateral.

To speak to the team about securing an Estate Advance, click here.

What happens to a mortgage when someone dies?

When someone dies, their mortgage becomes a debt of the estate. This means it needs to be managed as part of the estate administration process.

In most cases, the mortgage will either be:

• Repaid once the property has been sold
• Paid off using other estate funds like cash in bank accounts
• Taken over by a beneficiary who wants to keep the property
• Taken over by a surviving joint borrower

The first thing executors should do is tell the mortgage lender that the property owner has died. The lender can then explain what needs to happen next, confirm how much is still outstanding on the balance and discuss whether payments need to continue straight away.

Some lenders may agree to pause payments while probate is being arranged. However, they may still charge interest during this time.

Who pays mortgage payments during probate?

Mortgage payments during probate are normally paid by the executor from the estate if the mortgage belonged solely to the person who died.

This means the executor or administrator is responsible for making sure the payments are made using estate funds. However, not all estates have the cash available to pay the mortgage straight away.

You see, many estates are valuable on paper, but short on accessible cash. For example, the deceased may have owned a home worth hundreds of thousands of pounds, but only had a small amount of cash in bank accounts.

When this happens, the estate may technically have enough value to cover the mortgage, but not enough cash available to make the payments.

This can become a real problem if probate takes six months to a year to complete.

What if there is a joint mortgage?

If there is a joint mortgage, the surviving borrower is normally responsible for continuing the mortgage payments.

For example, if a husband and wife had a joint mortgage and one spouse dies, the surviving spouse will usually be responsible for the mortgage payments.

This is because when it comes to a joint mortgage, each borrower is responsible for the whole mortgage, not just their share.

If the property was owned as joint tenants, the surviving owner will normally inherit the property automatically. If the property was owned as tenants in common, the deceased person’s share will form part of their estate and be administered under the Will or intestacy rules.

Can mortgage payments be paused during probate?

In some cases, when asked, lenders may agree to pause mortgage payments after a death. However, this depends on the lender, the mortgage agreement and the circumstances of the estate.

However, this does not mean the debt goes away. Interest may continue to build, and the outstanding balance may increase even while payments are paused.

This is why it’s important for executors to speak to the lender as soon as possible. Ignoring mortgage payments can create more problems later, especially if the lender continues to charge interest.

What if the estate cannot afford the mortgage payments?

If the estate cannot afford the mortgage payments, the executor may need to look at other ways to finance the estate while waiting for probate to complete.

This is a big issue when an estate is property-rich but cash-poor. The estate may include a valuable home, but the executor may still need to find money for:

• Mortgage payments
• Insurance
• Council tax
• Utility bills
• Property maintenance
• Legal fees
• Inheritance Tax
• Funeral expenses

And because the property may not be able to be sold until probate has been granted, executors can end up needing money before the estate has access to it.

This is where Provira’s Estate Advance can help.

Our Estate Advance allows executors to access up to 50% of the estate’s net value within days, helping them cover estate costs while waiting for probate to complete.

There are no personal guarantees, no monthly repayments and no need to put down personal property as collateral.

Start your loan application by speaking to the Provira team today.

What happens if the property is going to be sold?

If the property is going to be sold, like with all property sales, the remaining balance of the mortgage is paid with the money from the sale.

However, selling a property during probate can take time.

Executors may need to first:

• Apply for probate
• Get the property valued
• Tell the mortgage lender
• Keep the property insured
• Maintain the property
• Clear personal possessions
• Hire an estate agent and solicitor
• Wait for the sale to complete

During this period, mortgage interest and other estate costs may continue to build.

This can reduce the amount of money eventually left for beneficiaries, especially if the property takes longer than expected to sell.

What if a beneficiary wants to keep the property?

If a beneficiary wants to keep the property, they may need to take over the mortgage or remortgage in their own name.

In this case, the mortgage lender will need to look into whether the beneficiary can afford the mortgage. If they can’t, the property may still need to be sold so the loan can be repaid.

This can be emotionally difficult, especially where the property is a family home. A beneficiary may want to keep the house for sentimental reasons, but the estate still needs to deal with the mortgage, pay all debts and clear any tax due.

How Provira can help executors cover mortgage payments during probate

Keeping up with mortgage payments during probate can put a lot of pressure on executors, especially when the estate has value but not enough cash available.

A property may eventually sell for a lot of money, but that does not help if mortgage payments, insurance, legal fees or Inheritance Tax need to be paid now.

That’s where Provira’s Estate Advance can help.

We give executors access to up to 50% of the estate’s net value within days, helping cover estate costs before probate is complete.

We only charge simple interest rather than compound interest, so costs stay clear and predictable while the estate goes through probate.

If you are an executor struggling to keep up with mortgage payments or other estate costs during probate, apply for an Estate Advance with Provira today.