Bereavement: mortgage accounts

If the deceased had a mortgage, it’s really important to carry on making the monthly repayments, so the account doesn’t fall into arrears.

Please contact our Credit Management team to talk through the options open to you, if you're finding the payments difficult. You also need to make sure any buildings insurance is kept in place. Once you've notified us of the death, we can help you with the next steps.

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Find out what happens to different accounts

If the mortgage was only in your loved one's name, they're known as a sole borrower. This means the mortgage is a debt of their estate and must be repaid in full. The money to do this usually comes from a life policy, the estate, or from selling the property.

Before we can give you full information about the mortgage, we need to see the original Grant of Probate letters of administration or certificate of confirmation (in Scotland).

We can, however, let you know the mortgage balance and monthly payment amount so you can seek a grant of probate and make the mortgage payments. To get this information, which will be sent to the mortgaged address, you’ll need to show us the original death certificate, a coroner’s interim certificate or a death certificate verification form from your solicitor. You might also need to provide some identification before we can release any of this information.

We can't transfer the mortgage to anyone else, unfortunately. If it's appropriate, you or someone else can apply for a new mortgage for the property, but we're unable to guarantee that we can accept the application. You or any other new borrower would need to go through a full application process so we can check that we're able to offer a mortgage.

If you've inherited the property, you might be able to apply for a new mortgage. However, you won't be able to make changes to the existing mortgage.

If the mortgage was in the deceased's name plus one or more other people, they are known as a joint borrower. There are two types of joint borrower, and what happens to the property is different for each.

Joint tenants – their share of the property will automatically transfer to the other joint tenant and your loved one’s name will be taken off the mortgage (unless they were bankrupt, in which case their share doesn’t pass to the other borrower – it passes to the trustee in bankruptcy). You don’t need a Grant of Probate for this to happen – just the death certificate, which you can present to the Land Registry.

Tenants in common – their share of the property won’t be transferred to other joint borrowers. What happens to it will follow the instructions in their Will or the rules of intestacy. If this is the case, you’ll need a grant of probate, letters of administration or (in Scotland) a certificate of confirmation to deal with the property. If you’re unsure what type of joint mortgage your loved one had, just ask. We’ll explain everything to you.

If your loved one had life assurance policies, you'll need to get in touch with the policy provider to make a claim. If the policy is linked to a Skipton mortgage, we'll deal with the claim once you have a Grant of Probate. We'll then use the proceeds to reduce or repay the mortgage account.

If a policy is in the sole name of the person who's passed away, it will stop. For joint policies, we'll let you know what the next steps are.

It's really important you make sure the property's protected until the mortgage is repaid. If the policy is in your loved one's sole name, you need to transfer it to the names of the personal representatives to ensure the cover continues.

If the buildings insurance is with Skipton, we can help you with the next steps once you've registered the death. If this insurance isn't with us, you'll need to contact the provider directly. Please remember that if the property is empty for more than 30 days, most buildings insurance will lapse. So you might need a solicitor or a specialist broker to help you set up a policy that's suitable for empty properties.

 

Savings accounts

If the deceased held savings accounts, such as ISAs or bonds with us, or was a trustee, here's what you need to do.

Wills & funeral plans

If your loved one held any legacy products with our trusted partners, here's how to get in touch with them.

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