Can the bank go after the residual estate on death of borrower

[Branz]

Borrower dies, leaving shortfall on mortgage on PPR due to negative equity (NE) and lapsed mortgage protection life cover.
Estate is due death in service payments under the pension scheme.

Can the bank seize the death in service payout in part settlement of the NE
Thanks

 

[Padraigb]

Debts owing by the deceased on death have priority over legacies, so the answer is almost certainly "yes" unless either
- it is a very unusual mortgage agreement (highly unlikely)
- the death in service payment is legally due to spouse or children rather than to the deceased's estate (possible).

The bank, however, cannot simply seze it. It is the duty of the executor or administrator to deal with the bank on this matter. It would be wrong - and very unwise - of an executor to "forget" to make the bank aware the estate has capacity to pay something towards the debt.

 

[Jim2007]

It would be wrong - and very unwise - of an executor to "forget" to make the bank aware the estate has capacity to pay something towards the debt.

Wrong, unwise... it would be bloody stupid unless they were willing to fork up out of their own pocket afterwards!