Mortgages and your LPA
Guidance from Estate Advisory Group
Paying the mortgage is straightforward. Borrowing more, or releasing equity, is not.
What you can do
- Keep paying the mortgage from the donor's funds.
- Notify the lender of the LPA and get statements sent to you.
- Ask for a payment arrangement if income has dropped.
- Redeem the mortgage on a sale — see selling the donor's house.
Borrowing and equity release
Most lenders will not let an attorney take on new debt
Equity release and further advances usually require the borrower's own informed consent and independent legal advice. Where the donor lacks capacity, expect the lender to require a Court of Protection order, and expect the court to look hard at whether the borrowing benefits the donor.
Practical points
- Consent to let is needed before renting the property out.
- Buildings insurance must stay in force, and empty-property terms are stricter.
- Interest-only mortgages reaching term are a common crisis point — raise it early with the lender.
Common questions
Can I remortgage to a cheaper rate?
A product transfer with the same lender is sometimes possible; a new mortgage almost always needs a court order.
Can I add myself to the deeds?
No. That is a gift and a conflict, and needs the Court of Protection.
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This is general information about how Lasting Powers of Attorney work in England and Wales. It is not legal advice about your situation. What we do and do not do.
Published by Estate Advisory Group