After the loss of a partner you often have less income. If there is no payment from a term life insurance policy, the mortgage payments will continue. With many mortgage lenders you can choose to pay the current low mortgage interest. You have to ask for that yourself.
- Open interest without penalty
- Remit free of payment after death
- Take action yourself
- Decide on time
Open interest without penalty
You should not break open the fixed-rate period of your mortgage loan free of charge. If you go to another mortgage bank, you pay a fine . There are exceptions. With many banks you can leave the chosen interest period free of charge after a move and after your partner's death.
Remit free of payment after death
Often, after death, a benefit is derived from a mortality risk insurance linked to the mortgage. After the death, the bank will pay off the mortgage loan with this money without penalty.
Without insurance you have 2 options after the death of a partner:
Usually you can pay off without penalty after death. It does not matter whether the money comes from your own piggy bank or from a new mortgage loan with another bank. Only at Obvion and Venn Hypotheken do you pay a fine (reference date May 2018).
At half of the mortgage banks you can buy off the high mortgage interest without penalty and switch to the current lower interest rate at your own bank . This is often cheaper than switching to another bank . Usually there are no consultancy costs and no notary and valuation costs. The bank can however charge administration costs.
Note: when switching to another lender, the new bank assesses the financial situation of the partner who has stayed behind. The income of that partner can not be sufficient to get an agreement for the mortgage.
Take action yourself
Do you want to secure the mortgage interest at the current low interest rate after your partner's death? Ask for it yourself. It is usually not clear in the conditions of the mortgage and banks do not actively inform you. Half of the banks do not cooperate with this anyway.
Decide on time
Does your bank help you switch to a lower interest rate at your own bank or when you switch to another bank , do this quickly. With many banks you have to decide within a year after the death. There are also banks where you only have 6 or only 3 months. The reflection period only applies if you keep the remaining partner in the house. This does not apply if the heirs sell the house. When selling, you can pay off without penalty.
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