What happens if I die before my mortgage is fully repaid?

If you die before your mortgage has been paid off, then the debt will pass on to your estate and the mortgage becomes immediately repayable. If there's not enough money in your estate to repay the mortgage, then the house would have to be sold. Mortgage debts are not written off in the event of death and that's why it's essential that you take out life insurance to repay the mortgage and avoid these problems.

Your next of kin is likely to be your close family, so if you don't have life insurance, they'll inherit the house but the mortgage will still have to be repaid in full. That’s why life insurance is such a good idea.

You can also get critical illness insurance, either separately or combined with a life insurance policy. Critical illness insurance means your mortgage is paid off in full if you are diagnosed with any of a long list of critical illnesses, including blindness, cancer, stroke and heart attack.

It's wise to insure yourself for all eventualities - so as well as the above life and critical illness insurance, you should also consider mortgage payment protection insurance. This pays your monthly mortgage repayments for up to 12 months if you fall sick, are made redundant, or have an accident that prevents you from working.