The borrower’s death does not change the contract: the debt passes into the estate and the repayment schedule continues. The bank terminates a loan as it would in the borrower’s lifetime, that is when instalments are in arrears, usually after two or three missed periods. Termination makes the whole remaining balance due at once. After a death the priorities are therefore to report it to the bank with a death certificate, check the loan insurance and agree who pays the instalments until the inheritance proceedings end.
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