Can I Pay Off a Joint Mortgage Without Probate?

Dealing with practical matters after a bereavement can be tough. Unfortunately, some issues, like your mortgage, still need attention. In the UK, there are various types of mortgages, one of which is a joint mortgage. If you share a joint mortgage with someone who passes away, you could be thinking — can I pay off a joint mortgage without probate? Keep reading for a straightforward explanation of what happens to a joint mortgage after someone dies, where we’ll guide you through the necessary steps.

What is a joint mortgage?

A joint mortgage is a home loan taken out by two or more people who purchase a property and agree to share responsibility for repaying the loan. While this option is commonly chosen by couples planning to live on the property, it is also used by friends or family members. 

This type of mortgage enables both parties to afford a more expensive home than they might have been able to on their own. With the combined financial resources of two people, they can provide a larger deposit and manage higher monthly mortgage payments. Mortgage lenders typically view joint mortgages as less risky compared to those for a single individual, as there are two incomes to cover the repayments.

Types of joint mortgages

There are two main types of joint mortgages: ‘joint tenancy’ and ‘tenancy in common’.

In a joint tenancy, all parties have equal rights to the property, meaning that if the house is sold, the profits are shared equally. This option is commonly chosen by couples buying a property together.

In a tenancy in common, each person owns a specific share of the property, and the ownership percentages can vary. A deed of trust outlines the shares owned by each individual. This arrangement is more typical among families and friends.

What happens to a joint mortgage when someone dies?

What type of joint mortgage you have (joint tenancy or tenancy in common) will dictate what happens after someone dies. In any circumstance, it’s essential to notify the mortgage lender as soon as possible.

In a joint tenancy, the mortgage automatically passes to the surviving individual if one person dies. The surviving person becomes fully responsible for the mortgage repayments. This is due to the legal principle known as the “right of survivorship.” If there are three or more people on the mortgage, the responsibility is shared equally among the remaining individuals if one person dies. The repayments may be easier to manage if the deceased person has a life insurance policy, which is why many people opt for this type of coverage. In any case, it’s crucial to consult with property and mortgage experts for guidance when a joint mortgage holder passes away.

In a tenancy in common, if the deceased person did not leave a will, their share of the property is inherited by their closest living relative. If you are that relative, you will inherit the deceased’s share, making you responsible for the full mortgage. If someone else inherits the share, you will co-own the property with them and continue to share the mortgage responsibility as before.

Do I need probate after someone in a joint mortgage passes away?

In England or Wales, probate is typically required when the deceased person owns property or substantial assets solely in their name. However, probate may not be necessary if the deceased owned property as joint tenants with others, as this automatically transfers to the surviving owners.

What happens to a joint mortgage if someone dies without a will?

If the property is held under a joint tenancy mortgage, a will is not needed to determine what happens after one of the joint tenants passes away. The surviving joint tenant will automatically inherit the property and take on the responsibility of repaying the mortgage.

How long will I have to repay the mortgage?

If no changes are made to your joint mortgage after someone dies, the mortgage will continue as it was. You will still have the same time left to make repayments, with the same interest rate and terms as before. If you’re unable to make the payments and need to sell the property, your mortgage lender will typically allow you a reasonable amount of time to do so. They may even agree to suspend repayments until the sale is completed. However, it’s important to note that interest will continue to accrue during this time, meaning your debt will increase.

What if I can’t afford the payments?

Following the death of a joint mortgage holder, it’s not uncommon for the surviving person to struggle with the mortgage payments.

Here are a few options that may be available:

• Requesting a ‘payment holiday’ from your lender
• Extending the mortgage term to spread repayments over a longer period
• Switching to an interest-only mortgage
• Selling the property and moving to a more affordable one
• Remortgaging to secure a better deal
• If you’re over 55, you may want to consider using equity release to clear your outstanding mortgage

If you don’t know what the best course of action is, it’s advisable to seek advice from a specialist. It’s common for a surviving borrower to face financial challenges after a loss, so don’t hesitate to reach out to experts who can guide you through the process.

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