Can a mortgage company charge interest after the account holder has died?

My late father remortgaged his house to pay off debts. He took the mortgage over 25 years at the age of 76! - for the life of the mortgage he wouldn't have even made a dent in the capital owed. Now as executor of his estate, I find out the mortgage company have the deeds, so how can I sell his property to pay off the debt. They still want to charge interest even though I have informed them of his death. Are they within their rights to do this?

Answer:
They are still within their rights to chage interest and unfortunately do.

Mortgage companies can lend into retirement age. Some also offer retirement mortgage products whereby they will only collect the interest on a monthly basis, not capital. This is done on the assumption that the mortgage will be repaid from the proceeds of the estate, basically the mortgage co will take the funds owed from the eventual sale. Saying this though the company still have to carry out the usual underwriting checks on the applicant, which obviously includes affordability etc.

Yes they are within their rights as they are still owed a great deal of money. The interest will continue to accrue. If the mortgage company hold the deeds then you have nothing, I'm afraid. Did your father stop paying and they called in the loan?

yes
of course they should be charging interest

Yes the money will come out of the dead persons estate

The mortgage company is at fault as at 76, it would be unlikely to happen that he would have been able to pay it back!

I thought that if the person passes away then interest is frozen and that like loans, they are written off according to new laws.

A solicitor maybe able to help you

As far as I am aware interest will continue to be charged until the debt is repayed from the deceased persons estate.

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Can a mortgage company charge interest after the account holder has died?

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