No Mortgage Protection - Procedure at death

I cancelled my mortgage protection about six months ago. I got a call from the bank about a month later. Told them I had no intention of taking out new policy and haven't heard from them since. Mortgage payments have always been made in full and on time.

I am single with no dependants. Outstanding mortgage is €140k. Value of property even in today's market would be about €300K. Estate would go to a brother who is already very well off. My query. In case of death what would happen.

1 Would bank sell house and pass on balance after outstanding mortgage amount was taken to estate or

2 Would brother be given the option of paying off outstanding mortgage amount and keeping house

Would brother be given the option of paying off outstanding mortgage amount and keeping house

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Yes. He would get first refusal. If he refused they would sell and pass on any balance.
They would fire sale the house and the estate would get very little if anything.

Thanks. I was hoping that would be the case. He would be in a position to pay off outstanding mortgage in cash. I fear that if the bank sold it firesale price and legal costs would eat up a lot of equity leaving little for estate.

Are you talking here about mortgage protection insurance ie insurance that pays your mortgage for a fixed period in the event of you losing your job OR Life Assurance - assurance that pays out if you die during the life of your mortgage policy?

Basic mortgage protection which pays outstanding mortgage amount to bank in event of death. Required by banks before mortgage is issued, but there doesn't seem to be a problem cancelling it thereafter, although technically not allowed as banks prefer to be paid full outstanding amount by insurer. Advisable in case of someone with dependants but felt in my case that it was unnecessary additional expense.

Payment protection insurance or life assurance or critical illness insurance are different.