Your mortgage doesn't disappear when you die
When you die with a mortgage, the debt doesn't vanish — it becomes a liability of your estate, and the lender can require the home to be sold if it isn't repaid. Two tools solve this together:
- Life cover to clear the mortgage — decreasing term assurance is designed to pay off the outstanding balance on death.
- A will — to direct who inherits the home and to appoint executors and (if you have children) guardians.
A life policy written in trust pays out directly to your chosen people, bypasses probate so the money arrives quickly, and falls outside your estate — so it's free of the 40% inheritance tax. This matters most when the payout is meant to clear a mortgage.
What can go wrong without planning
- No life cover — the family home may have to be sold to repay the mortgage.
- A policy paid into the estate (not in trust) can be delayed by probate and taxed at 40%.
- No will — the intestacy rules decide who inherits, and an unmarried partner may get nothing.
- Young children inheriting a home or payout outright at 18, with no guardians of your choosing.
How ClearLegacy helps
Life cover and a will are two halves of protecting a mortgaged home. ClearLegacy handles the will side: who inherits the property, who your executors are, and — if you have children — guardians and the age they inherit. Pair it with mortgage life cover written in trust and your family is protected.
- Direct who inherits the home.
- Appoint executors and guardians for children.
- Use a will trust so children inherit at an age you choose.
- Fixed £69, delivered within 24 hours, legally valid in England & Wales.
Protect the home your family lives in
Fixed price, legally valid in England & Wales, delivered within 24 hours.
Make my will — £69FAQs
What happens to my mortgage when I die?
The mortgage is a debt repaid from your estate. If it isn't cleared — for example by life insurance — the lender can require the property to be sold. Owning as joint tenants passes the home to the survivor, but the loan still has to be serviced or repaid.
Should my mortgage life insurance be written in trust?
Usually yes. A policy written in trust pays out directly to your beneficiaries, avoids probate delay, and falls outside your estate so it's free of the 40% inheritance tax — important when the payout is meant to clear a mortgage for your family.
Do I need a will as well as mortgage life cover?
Yes — they do different jobs. Life cover clears the debt; a will decides who inherits the home, appoints executors and (for parents) guardians, and ensures your partner is provided for. Together they protect the home and the people in it.