---
title: "Probate Loans, Executor Loans and Inheritance Advances"
description: "Probate loans: executor loans for Inheritance Tax before the grant, inheritance advances, bridging on inherited property, and the HMRC routes to try first."
url: "https://mortgagelane.com/mortgages/probate-loans"
site: "Mortgage Lane"
collection: "mortgages"
date: "2026-10-06"
author: "Joseph Lane"
category: "Mortgages"
reviewed: "2026-10-08"
reading_time: "36 min"
byline: "Joseph Lane"
author_credentials: "CeMAP · FCA authorised firm"
language: "en-GB"
robots: "index,follow"
---

# Probate Loans, Executor Loans and Inheritance Advances

Probate loans: executor loans for Inheritance Tax before the grant, inheritance advances, bridging on inherited property, and the HMRC routes to try first.

Probate loans: executor loans for Inheritance Tax before the grant, inheritance advances, bridging on inherited property, and the HMRC routes to try first.

[Probate loan](https://mortgagelane.com/definitions?term=probate-loan)

Specialist lending

Short-term finance against an estate before it is wound up: an executor loan to pay Inheritance Tax or costs before the grant, an inheritance advance to a beneficiary, or a bridging loan on estate property after the grant.

[Read the full definition of Probate loan](https://mortgagelane.com/definitions?term=probate-loan)

## Expert advice on probate loans

Speak to a Mortgage Lane adviser about your options.

## In short

A probate loan meets an estate cost, usually Inheritance Tax, until the grant lets the executors sell assets, or pays a beneficiary part of their share early. HMRC's own routes come first: the Direct Payment Scheme pays the tax from the deceased's accounts, and tax on property can be spread over 10 years, with interest on the unpaid balance. After the grant, bridging or a mortgage on the inherited property can clear the rest.

## What is a probate loan?

**A probate loan is short-term finance that lets an estate's executors or beneficiaries use the value of an inheritance before the estate is wound up, repaid from the estate once the assets can be collected and sold.** Probate lending takes three different forms. An executor loan, sometimes called an inheritance tax loan, is made to the personal representatives to pay [Inheritance Tax](https://mortgagelane.com/definitions#def-inheritance-tax), the probate fee, funeral costs or estate debts before the [grant of probate](https://mortgagelane.com/definitions#def-grant-of-probate), and the estate repays it from the first assets it sells. An inheritance advance, also called a probate advance or an advance on inheritance, pays a beneficiary a lump sum now against part of their expected share. Some providers buy that part of the share outright, so there is nothing to repay, and others lend against it. A probate [bridging loan](https://mortgagelane.com/definitions#def-bridging-loan) is secured on property in the estate once the grant has been issued, to pay tax, settle debts or fund a beneficiary buying out the others, and is repaid when the property is sold or refinanced onto a mortgage. A "loan against inheritance" can mean any of the three, and which one it is decides who is liable, what it costs and whether the [Financial Conduct Authority (FCA)](https://mortgagelane.com/definitions#def-financial-conduct-authority) regulates it.

The personal representatives usually have to pay some of the tax before they can get the grant, but until the grant is issued they cannot sell the house or most of the investments that would pay it ([gov.uk: paying Inheritance Tax](https://www.gov.uk/paying-inheritance-tax)). [HM Revenue and Customs (HMRC)](https://mortgagelane.com/definitions#def-hm-revenue-and-customs) offers two routes of its own: the [Direct Payment Scheme](https://mortgagelane.com/definitions#def-direct-payment-scheme), under which banks, building societies and some investment providers pay the tax straight from the deceased's accounts, and paying the tax on land and buildings in 10 yearly instalments, with interest on the balance still owed. Borrowing is for the estates those routes do not reach: where the money is in a house, a business or investments held outside the scheme, where the executors want the tax cleared so that HMRC's interest stops, or where a beneficiary needs part of their inheritance before the estate is distributed. Most estates owe no Inheritance Tax at all: in the 2023 to 2024 tax year 4.72% of UK deaths led to a charge, fewer than 1 in 20, according to HMRC ([HMRC: Inheritance Tax liabilities statistics](https://www.gov.uk/government/statistics/inheritance-tax-liabilities-statistics/inheritance-tax-liabilities-statistics-commentary)).

On a death in England and Wales the personal representatives, meaning the executors named in a will or the administrators where there is no will, apply to the Probate Registry for a grant of probate or letters of administration, which gives them authority to collect and distribute the estate. Where Inheritance Tax is due, they first send the Inheritance Tax account, form IHT400, to HMRC, start paying the tax and wait for HMRC to send a unique code that the probate application needs ([gov.uk: applying for probate](https://www.gov.uk/applying-for-probate)). The tax is due by the end of the sixth month after the death, so for a death in January it is due by 31 July, and HMRC charges interest on anything paid after that. In Scotland the equivalent of probate is confirmation, granted by the sheriff court on an inventory of the estate in form C1 ([HMRC manual: confirmation in Scotland](https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm05104)). In Northern Ireland the Probate Office of the High Court in Belfast issues grants, and form IHT421 goes to HMRC with the IHT400 ([Department of Justice NI: probate](https://www.justice-ni.gov.uk/articles/probate)).

Mortgage Lane arranges bridging loans and mortgages on inherited property across England, Wales, Scotland and Northern Ireland, for paying Inheritance Tax after the grant, buying out other beneficiaries, keeping or letting an inherited home, and refinancing an estate's debts. Executor loans and inheritance advances before the grant come from specialist providers, and we introduce executors and beneficiaries to them. In every case we check the HMRC routes with you first, so that the estate borrows only what those routes leave unpaid. A mortgage or bridging loan to an individual secured on a home is normally a [regulated mortgage contract](https://mortgagelane.com/definitions#def-regulated-mortgage), covered by the FCA's [mortgage conduct rules (MCOB)](https://mortgagelane.com/definitions#def-mcob), whoever lives there; the criteria section below sets out the exceptions and how the other products are treated. We do not give tax or legal advice. The estate's solicitor or a tax adviser can, and [MoneyHelper](https://www.moneyhelper.org.uk/en/family-and-care/death-and-bereavement/when-to-use-a-probate-specialist) explains when a probate specialist is worth paying for.

## Probate loan rates

**Each of the three products is priced differently, and each can be measured against what HMRC charges for paying late.** An executor loan is priced by the lender on the estate: its value, how easily its assets can be sold and how long the grant is likely to take. The charge is usually a monthly or annual rate on the sum advanced, with the interest [rolled up](https://mortgagelane.com/definitions#def-rolled-up-interest) and paid by the estate at the end. Interest on a loan to personal representatives to pay the tax due when they deliver their account can be set against the estate's income for the first 12 months of the loan ([Income Tax Act 2007, sections 403 and 404](https://www.legislation.gov.uk/ukpga/2007/3/section/403)), a point for the estate's accountant.

An inheritance advance written as a purchase of part of a beneficiary's share is priced through fees, for example an arrangement fee and a charge that grows with time until the estate distributes, deducted from the share at the end. Whether that charge is capped, and at what level, varies by provider, so the fair comparison is the total that will be deducted at distribution. Bridging on inherited property is priced as standard bridging, at a monthly rate the lender sets for the [loan-to-value](https://mortgagelane.com/definitions#def-loan-to-value) and the exit, with interest rolled up or paid monthly; our guide to [how bridging loan interest works](https://mortgagelane.com/guides/bridging-loan-guide/how-bridging-loan-interest-works) explains the options.

The benchmarks for all three are the Direct Payment Scheme, which uses the deceased's own money and so carries no loan interest or lender's fee, and HMRC's own charge. Late payment interest on Inheritance Tax has been charged at [Bank Rate](https://mortgagelane.com/definitions#def-bank-rate) (the Bank of England base rate) plus 4 percentage points since 6 April 2025 ([HMRC Inheritance Tax Manual, IHTM30341](https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm30341)). With Bank Rate at 3.75% as at October 2026, the rate is 7.75% a year, as it has been since 9 January 2026 ([HMRC: Inheritance Tax interest rates](https://www.gov.uk/government/publications/rates-and-allowances-inheritance-tax-thresholds-and-interest-rates/inheritance-tax-thresholds-and-interest-rates)).

**Inheritance Tax due and the money locked in the estate?** Get in touch with the IHT400 figures, the balances in the deceased's bank and investment accounts, and the expected timetable to the grant. We work out what the Direct Payment Scheme and instalments cover before any loan is discussed.

HMRC charges Bank Rate plus 4 percentage points on late Inheritance Tax, 7.75% a year as at October 2026. Any probate loan can be measured against that, and against the Direct Payment Scheme, which carries no loan interest.

## Probate loan criteria

Regulation turns on who borrows and what secures the loan. Credit to an individual, including executors borrowing in their own names, is a credit agreement under article 60B of the [Financial Services and Markets Act 2000 (Regulated Activities) Order 2001](https://www.legislation.gov.uk/uksi/2001/544/article/60B), and it is regulated consumer credit unless an exemption applies. Credit to a company, such as a trust corporation acting as executor, falls outside that definition. A loan to an individual, including individual executors, secured on land of which at least 40% is used or intended to be used as a dwelling is a regulated mortgage contract, whoever lives there ([article 61](https://www.legislation.gov.uk/uksi/2001/544/article/61)), unless an exclusion in article 61A applies. The main ones here are an investment property loan, where no borrower or close relative will live in the property and the loan is taken wholly or mainly for a business, and a consumer buy to let bridging loan. Property-secured credit that is not a regulated mortgage contract is exempt from consumer credit regulation where less than 40% is lived in by the borrower or a close relative ([article 60D](https://www.legislation.gov.uk/uksi/2001/544/article/60D)). Providers generally present an inheritance advance written as a purchase of part of a share, with nothing to repay even if the estate falls short, as a sale and not a loan. Whether a particular agreement is regulated credit depends on its terms, and one that makes the beneficiary repay a shortfall can be credit. Ask the lender or provider which applies before signing, because the borrower's protections depend on it.

The table below compares the three products. Amounts, terms, fees and credit checks are set by each lender or provider, so it gives no figures for them.

## Probate loan criteria

*Probate loan criteria*

| Criterion | Executor loan | Inheritance advance | Bridging or mortgage on inherited property |
| --- | --- | --- | --- |
| Who applies | The personal representatives (executors or administrators), often through the estate's solicitor | The beneficiary, with the executors' or solicitor's confirmation of the entitlement | The personal representatives once the grant is issued, or the beneficiary once the property is in their name |
| What it pays for | Inheritance Tax, the probate fee, funeral costs, estate debts, and insurance and upkeep of estate property | Whatever the beneficiary chooses | Inheritance Tax still owed after the grant, buying out other beneficiaries, estate debts, work before a sale or letting |
| Amount | Up to the tax and costs due, within a proportion of the estate's net value set by the lender | A proportion of the beneficiary's expected share, set by the provider; some providers advance small sums | The lender's loan-to-value limit on the property, and affordability for a mortgage |
| Security | Varies by lender; some lend unsecured against the estate with a solicitor's undertaking to repay from the first assets sold | An assignment of, or charge over, part of the beneficiary's interest in the estate, paid by the executors at distribution | A charge on the inherited property, which in England and Wales HM Land Registry registers only once the grant is issued; in Scotland the lender needs confirmation, and in Northern Ireland the grant |
| Credit checks | Set by the lender; the assessment centres on the estate | Set by the provider; some make no credit check because the estate repays | The lender's normal bridging or mortgage assessment of the borrower |
| Repayments | Usually none during the term; interest rolls up and the estate repays | None under a sale or assignment; under a loan, as the agreement sets | Bridging: interest rolled up or paid monthly, with the loan repaid at exit; mortgage: monthly payments |
| Term | Until the estate sells assets, within the lender's maximum | Until the estate distributes | Bridging: a short term set by the lender and the exit; mortgage: standard terms |
| Estate requirements | A will or a clear intestacy, enough value after debts, and for many lenders a solicitor administering the estate | A clear, undisputed entitlement, and for many providers a professionally administered estate | The grant issued, a property that can be sold or let, and a clear exit for bridging |
| Disputed estates | A caveat stops the grant, and a contested will or Inheritance Act claim leaves the shares uncertain; lenders generally wait | As for executor loans | Possible once the dispute is resolved; no grant is issued while a caveat is in force |
| Where | England and Wales; Scotland (confirmation) and Northern Ireland depend on the lender | Depends on the provider | England, Wales, Scotland and Northern Ireland, lender by lender |
| FCA regulation | A loan to individual executors is a credit agreement and can be regulated consumer credit unless exempt; a loan to a company acting as executor is not | Providers generally present a sale or assignment of part of a share as a sale and not a loan; an agreement that makes the beneficiary repay a shortfall can be credit, and an advance written as a loan to an individual can be regulated consumer credit | A loan to an individual secured on an inherited home is normally a regulated mortgage contract, whether or not the borrower will live there, unless it is a business purpose loan on a property no borrower or close relative will live in; a loan to a company is not; a buy to let mortgage on an inherited home can be consumer buy to let |

How the three products work under the published probate, Inheritance Tax and FCA rules, checked 6 October 2026. Amounts, terms, fees and credit checks are set by each lender or provider and vary; the lender or provider confirms how it assesses a particular estate.

## Types of probate finance, and when each applies

**Where the estate's money sits decides the product.** Money held by a bank, building society or investment provider in the Direct Payment Scheme can usually pay HMRC directly, money in a house or with a provider outside the scheme may need a bridge to the grant, and a beneficiary who needs funds early is a separate case.

### Executor loans to pay Inheritance Tax

The personal representatives borrow what the Direct Payment Scheme cannot cover: the tax on assets that cannot be paid by instalments, the first instalment on property once it has fallen due, and sometimes the probate fee and the funeral. They repay it from the first assets sold after the grant. Some lenders deal through the estate's solicitor and ask for an undertaking to repay from the estate, and terms vary by lender. This is the route for estates whose value sits in investments or property that cannot be sold before the grant. Executors who want the whole tax paid at once, so that HMRC's interest stops running on the deferred instalments, can size the loan to the full liability. Executors can also pay the tax from their own money and claim it back from the estate once they have the grant.

### Inheritance advances for beneficiaries

A beneficiary whose entitlement is confirmed receives a lump sum now against part of their share, and the provider is paid by the executors when the estate distributes. Providers write this in two ways. Under a sale or assignment, the beneficiary transfers part of their interest in the estate for the lump sum and makes no repayments. Under a loan, the beneficiary borrows against the expected share and the agreement sets the repayment terms. Whether the beneficiary is personally liable if the estate turns out smaller than expected depends on the agreement, so it is worth reading that clause first. Because the estate is the source of repayment, some providers make no credit check. An advance suits a beneficiary who needs money during a long administration, and providers will not usually act while the entitlement is disputed.

### Small inheritance advances

The same structures work at a smaller scale, for a beneficiary who needs a few thousand pounds for a deposit, a debt or a car. The minimum advance varies by provider. Fees weigh more on a small sum, because a fixed arrangement fee is a bigger part of it, so compare providers on the total deducted at distribution.

### Probate bridging loans on estate property

Once the grant is issued, the personal representatives can charge the estate's property. A bridging loan secured on it can pay Inheritance Tax still owed on the house, settle estate debts, pay for work before a sale, or let one beneficiary buy out the others, and it is repaid when the property is sold or refinanced onto a mortgage. In England and Wales, HM Land Registry will not register a disposition by an executor until probate is granted, or by an administrator before letters of administration ([HM Land Registry practice guide 6](https://www.gov.uk/government/publications/devolution-on-the-death-of-a-registered-proprietor/practice-guide-6-devolution-on-the-death-of-a-registered-proprietor)). Scotland and Northern Ireland have their own registers, and there the executors need confirmation or the grant before they can deal with the property. That is why a bridging loan on estate property normally waits for the grant and an executor loan does not. The lender assesses the property, the borrower and the [exit strategy](https://mortgagelane.com/definitions#def-exit-strategy). A bridging loan to an individual on a home is normally regulated, and our guide to [regulated bridging loans for homeowners](https://mortgagelane.com/guides/bridging-loan-guide/regulated-bridging-loans-for-homeowners) explains how that works. Our [bridging loans](https://mortgagelane.com/short-term-finance/bridging-loans) page covers the mechanics, our guide to [bridging loans for life events](https://mortgagelane.com/guides/bridging-loan-guide/life-events) covers tax bills and probate, and the bridging guide explains [exit strategies and why bridging loans get refused](https://mortgagelane.com/guides/bridging-loan-guide/exit-strategies-and-why-bridging-loans-get-refused).

### Mortgages to buy out other beneficiaries

Where one beneficiary keeps an inherited house and pays the others for their shares, the share they already inherit can do the work of a deposit. Lenders differ on how they treat it: some count the inherited share as the borrower's [equity](https://mortgagelane.com/definitions#def-equity) and lend against the full value, while others look at the price paid for the other shares. A [residential mortgage](https://mortgagelane.com/mortgages/residential-property-mortgages) applies where the beneficiary will live there. Where they will let it, a [buy to let mortgage](https://mortgagelane.com/definitions#def-buy-to-let-mortgage) applies, and the lender assesses the rent under the rules in our [buy to let mortgage guide](https://mortgagelane.com/guides/buy-to-let-mortgage-guide). A beneficiary who owns no other let property may fall within the [consumer buy to let](https://mortgagelane.com/definitions#def-consumer-buy-to-let-mortgage) rules. The Mortgage Credit Directive Order 2015 treats a buy to let as business lending where the borrower bought the property to let it or already owns other let property ([Mortgage Credit Directive Order 2015, article 4](https://www.legislation.gov.uk/uksi/2015/910/article/4)). Buying from the estate below market value, or a gift of equity within the family, follows the structures on our [family help mortgages](https://mortgagelane.com/mortgages/family-help-mortgages) and [BMV mortgages](https://mortgagelane.com/mortgages/bmv-mortgages) pages. A beneficiary buying out the others on one income can read our [single person mortgages](https://mortgagelane.com/mortgages/single-person-mortgages) page. A beneficiary letting an inherited home can also read our guide to [accidental landlord mortgages](https://mortgagelane.com/guides/buy-to-let-mortgage-guide/accidental-landlord-mortgage) and our page on [regulated buy to let mortgages](https://mortgagelane.com/mortgages/regulated-buy-to-let-mortgages).

### Mortgages and remortgages on inherited property

An inherited property with no mortgage can be mortgaged once it is in the beneficiary's name, to raise money, or on a buy to let basis if it is to be let. Lenders differ on how long you must have owned a property before they will [remortgage](https://mortgagelane.com/definitions#def-remortgage) it, and some make an exception for an inherited one. Landlords adding an inherited house to a portfolio are assessed across the portfolio, as our [portfolio mortgages](https://mortgagelane.com/mortgages/property-portfolio-mortgages) page explains. An inherited [house in multiple occupation](https://mortgagelane.com/definitions#def-hmo) follows the [HMO mortgages guide](https://mortgagelane.com/guides/hmo-mortgage-guide), and an inheritance used as a deposit on a first home is covered in the [first-time buyer mortgage guide](https://mortgagelane.com/guides/first-time-buyer-mortgage-guide).

### Estates with business, farm or pension assets

Business and agricultural property can qualify for relief. From 6 April 2026 full relief applies to the first £2.5 million of combined qualifying business and agricultural property, with 50% relief above that, and an unused allowance can pass to a surviving spouse or civil partner ([Finance Act 2026, Schedule 12](https://www.legislation.gov.uk/ukpga/2026/11/schedule/12)). For assets inherited from 6 April 2026, the tax on property that qualifies for either relief can be paid in 10 yearly instalments without interest, as long as each instalment is paid on time ([gov.uk: paying in yearly instalments](https://www.gov.uk/paying-inheritance-tax/yearly-instalments)). An estate built on a business or a farm may therefore need no loan, or a smaller one than the headline tax suggests.

From 6 April 2027 most unused pension funds and pension death benefits will count towards the estate, and the personal representatives will be liable to report and pay the tax on them. Death in service benefits from a registered pension scheme are excluded, and in limited circumstances the personal representatives will be able to direct the pension scheme to withhold benefits and pay the tax ([gov.uk: Inheritance Tax on unused pension funds](https://www.gov.uk/government/publications/inheritance-tax-unused-pension-funds-and-death-benefits/inheritance-tax-unused-pension-funds-and-death-benefits)). The change can bring estates with large pensions and little cash into the funding gap for the first time.

### Intestacy, letters of administration and disputed estates

An estate without a will is administered under the intestacy rules by administrators with letters of administration, and the same products are available once the entitlements are clear. In England and Wales a caveat entered at the Probate Registry stops any grant for 6 months, and it can be extended for another 6 ([gov.uk: stopping a probate application](https://www.gov.uk/stop-probate-application)); Scotland and Northern Ireland have their own caveat rules. A contested will, or a claim under the Inheritance (Provision for Family and Dependants) Act 1975, which applies in England and Wales, leaves the entitlements uncertain. Such a claim must be made within 6 months of the grant unless the court gives permission for a later one ([section 4 of the 1975 Act](https://www.legislation.gov.uk/ukpga/1975/63/section/4)), and lenders and advance providers generally wait for the outcome. The estate's solicitor can say where things stand before any application is made.

## The Inheritance Tax timetable

**The grant waits for the tax, so the order of the steps is fixed, and HMRC's own routes come first.** The table follows an estate in England and Wales where Inheritance Tax is due. Scotland and Northern Ireland use the same HMRC steps with their own court process.

## The Inheritance Tax timetable

*The Inheritance Tax timetable*

| Step | What happens | Who pays, and how |
| --- | --- | --- |
| Death | Accounts in the deceased's sole name are usually frozen; banks in the Direct Payment Scheme can later pay HMRC from them | None |
| Reference number | The personal representatives get an Inheritance Tax payment reference number from HMRC at least 3 weeks before paying | None |
| Valuation and the IHT400 | The estate is valued; an estate that is not excepted sends form IHT400 to HMRC within 12 months of the death and before applying for probate | None |
| Payment before the grant | Tax on cash, shares and other assets that cannot be paid by instalments, due by the end of the sixth month after the death; the first instalment on land, buildings and qualifying business assets falls due on the same date and is payable before the grant if the application comes after it | The Direct Payment Scheme from the deceased's accounts, the executors' own money reclaimed later, or an executor loan |
| HMRC's code | HMRC sends the unique code the probate application needs; in Scotland and Northern Ireland it stamps and returns form C1 or IHT421 | None |
| Probate application | Application to the Probate Registry, with a £526 fee in England and Wales for estates over £5,000; the grant usually follows within 12 weeks | Estate funds or the executors' own money |
| Grant | Authority to collect the assets, sell property and investments, and settle debts | None |
| Remaining tax | Instalments continue each year with interest on the outstanding balance; the tax on a property falls due in full when it is sold | Sale proceeds, a bridging loan on the property, or a mortgage where the property is kept |
| Distribution | The beneficiaries are paid, and any inheritance advance is settled by the executors from that beneficiary's share | The estate |

Published HMRC and HM Courts and Tribunals Service rules for England and Wales, checked on gov.uk on 6 October 2026. The probate fee and the 12 week processing time are gov.uk figures as at October 2026. Scotland and Northern Ireland differ where shown.

The nil-rate band is £325,000. A home, or a share of one, left to children or grandchildren adds the residence nil-rate band of up to £175,000, taking the threshold to £500,000. Any unused part of either band can be transferred to the estate of a surviving spouse or civil partner, so a couple leaving a home to their children can pass on up to £1,000,000 between them before any tax. The residence band tapers away by £1 for every £2 that the estate is worth over £2 million, and gifts made in the 7 years before death use up the nil-rate band but not the residence band ([gov.uk: residence nil-rate band](https://www.gov.uk/guidance/inheritance-tax-residence-nil-rate-band)). Both bands and the £2 million taper threshold are frozen until 5 April 2031 ([Finance Act 2026, section 72](https://www.legislation.gov.uk/ukpga/2026/11/section/72)). Tax is charged at 40% on the estate above the available bands, or at 36% on some assets where 10% or more of the net estate is left to charity.

If the estate cannot release funds before the grant and the executors cannot pay another way, HMRC can agree to postpone the tax and support a grant on credit. It still expects as much as possible to be paid first, asks for a legally binding undertaking to pay within an agreed time and, where a property sale will pay the tax, wants an accepted offer and an expected exchange date ([gov.uk: apply to postpone payment of Inheritance Tax](https://www.gov.uk/guidance/applying-for-a-grant-on-credit-for-inheritance-tax)). It is decided case by case, and the Direct Payment Scheme is the ordinary route. HMRC's late payment interest, 7.75% a year as at October 2026, runs from the due date on anything unpaid.

A married couple or civil partners leaving a home to their children can shelter up to £1,000,000 between them from Inheritance Tax, but the residence band shrinks by £1 for every £2 an estate is worth over £2 million.

## How a probate loan is arranged

1. **The estate and the gap.** The IHT400 figures, the balances the Direct Payment Scheme can draw on, the instalment option on property and the timetable to the grant. Together they give the sum that has to be found, if any.
2. **The product.** An executor loan for the estate's tax and costs, an inheritance advance for a beneficiary's own need, or bridging or a mortgage on the property once the grant is issued, chosen by who needs the money and when.
3. **Application through the estate.** The solicitor's confirmation of the estate's value, debts and entitlements, and the undertaking, assignment or charge the product needs. Executor loans and advances are assessed mainly on the estate; bridging and mortgages are also assessed on the borrower and the property.
4. **Funding, grant and repayment.** The tax paid and HMRC's code issued, then the grant. The executor loan is repaid from the first assets sold or the advance is settled at distribution, and any bridging loan is refinanced onto a mortgage or repaid from a sale.

If you are an executor with tax to pay, or a beneficiary waiting on an estate, get in touch with the IHT400 figures or the solicitor's confirmation of your entitlement. We show what the Direct Payment Scheme and instalments cover, what gap is left and which product fits it. The lender or provider makes the final decision. If a lender has already said no, [declined mortgages](https://mortgagelane.com/insights/declined-mortgages) sets out the routes back.

## The cost of waiting: tax, interest and the funding gap

**Whether an estate needs a loan at all can be read from three figures on the IHT400: the tax, the part of it that can be paid by instalments, and the money held in the deceased's accounts.**

### Step 1. The tax

An illustrative estate of £900,000 is left by a widow to her two children: a house worth £700,000 with no mortgage, an investment portfolio of £190,000 and £10,000 in a bank account. Her nil-rate band and residence nil-rate band, £500,000 together, are available, with no unused bands transferred from her late husband, whose own will used both his bands on legacies to the children. Had his bands passed to her unused, the threshold would be £1,000,000 and no tax would be due. The taxable estate is £400,000 and the Inheritance Tax at 40% is £160,000.

*Illustrative arithmetic on hypothetical figures. The bands available depend on the deceased's circumstances, and debts, funeral costs, gifts and reliefs would change the figures. Not tax advice.*

## Step 1 figures

*Step 1: the tax*

| Item | Figure |
| --- | --- |
| House, no mortgage | £700,000 |
| Investment portfolio | £190,000 |
| Bank account | £10,000 |
| Estate | £900,000 |
| Nil-rate band | £325,000 |
| Residence nil-rate band (house left to the children) | £175,000 |
| Taxable estate (£900,000 less £500,000) | £400,000 |
| Inheritance Tax at 40% | £160,000 |

Illustrative arithmetic on hypothetical figures, using the bands in force as at October 2026. Not tax advice.

### Step 2. What must be paid before the grant

The tax is shared across the assets in proportion to their value. The investments and the bank account, £200,000 of the £900,000, carry £35,556 of the tax, payable in full before the grant. The house carries £124,444, which can be paid in 10 yearly instalments. The first, £12,444, falls due at the end of the sixth month after the death and has to be paid before the grant if the grant is applied for after that date, as it is here ([HMRC manual IHTM30172](https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm30172)). The sum to find before the Probate Registry will act is therefore £48,000, or £35,556 if the grant is applied for earlier, plus the £526 application fee and the funeral.

## Step 2 figures

*Step 2: paying before the grant*

| Source of payment | Available before the grant | Covers |
| --- | --- | --- |
| Direct Payment Scheme from the bank account | £10,000 | Part of the £48,000 due before the grant |
| The investment portfolio | Nothing, assuming its provider is not in the Direct Payment Scheme | Nothing until the investments are sold after the grant |
| The house | Nothing before the grant | The later instalments, or the whole balance on a sale |
| Funding gap | £38,000 | An executor loan, or the executors' own money reclaimed from the estate |

Illustrative. The tax is shared across the assets in proportion to value and rounded to the pound. Assumes the grant is applied for after the end of the sixth month after the death, so the first instalment on the house is due before it. The probate fee and funeral costs are extra.

If £50,000 of the portfolio had been in the bank, so that the estate held £60,000 in the bank and £140,000 in investments, the tax due before the grant would still be £48,000, and the Direct Payment Scheme could pay all of it with no loan. The same is true if the platform holding the portfolio is in the scheme and pays HMRC from it, which some investment providers do.

### Step 3. The interest clock

After the first instalment, £112,000 of tax on the house is still owed, payable over nine more yearly instalments, and HMRC charges interest on the outstanding balance with each one. At 7.75% that is £8,680 for the first year, about £723 a month, falling as the balance is paid down. If the house is sold, the rest of the tax falls due from the proceeds and the interest stops. If a child keeps the house, the instalments and the interest carry on unless the balance is cleared, for example from a mortgage or a bridging loan on the property. An executor loan sized to the full £160,000 at the start would stop HMRC's interest altogether and put the lender's charges in its place, so the comparison is the lender's quoted cost over the months to a sale against HMRC's interest on the deferred balance.

### Step 4. The beneficiary's share

Each child is entitled to half the estate after the tax, about £370,000 before the estate's costs. A child who needs £50,000 now can take an inheritance advance of that amount. Under a sale or assignment there are no repayments: the executors pay the provider the £50,000 and its fee from that child's share at distribution, and the child receives the balance. Each provider quotes its own fee. A charge that grows with time costs more the longer the estate takes, unless it is capped, so compare the total deducted under each provider's terms.

### Step 5. Keeping the house

If one child keeps the £700,000 house, the shares set the price. Each child is entitled to about £370,000, so the child keeping the house pays about £330,000 into the estate for the difference. The estate then holds the portfolio, the bank balance and that £330,000, £530,000 in all, from which it pays the tax, repays any executor loan and pays the other child's £370,000. A mortgage of £330,000 on the £700,000 house is about 47% loan-to-value, assessed on the child's [affordability](https://mortgagelane.com/definitions#def-affordability) like any other mortgage. A residential mortgage applies if the child will live there and a buy to let mortgage if they let it, and a bridging loan can complete the transfer if it has to happen before a mortgage is ready.

*Illustrative figures before costs, interest and fees. How a lender treats the inherited share, and the loan-to-value it offers, vary by lender.*

### What decides the case

The estate fixes the tax, and the executors control the order: the Direct Payment Scheme first, instalments on property second, and a loan only for the gap that is left. The beneficiaries decide whether to wait for distribution or take part of it early, and whether the property is sold, kept or let decides whether bridging or a mortgage follows.

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## Probate loan calculator

The calculator estimates the Inheritance Tax on an estate from the published bands, splits it between property that can be paid over 10 years and other assets, and shows what is due before the grant, what the Direct Payment Scheme can pay, the funding gap and HMRC's interest on the deferred tax. The starting figures are the £900,000 estate illustrated on this page, with the grant applied for after the end of the sixth month after the death, when the first instalment on property is also due; for an earlier application only the tax on other assets is needed before the grant. Enter each asset at its value at the date of death and any mortgage in its own box; the calculator leaves out the exemptions and reliefs for spouses, charities, businesses and farms.

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Indicative estimate only, subject to lender criteria, affordability and valuation. The Inheritance Tax figures follow the published bands as at October 2026 and leave out exemptions, reliefs and the probate fee, so this is not tax advice and not an offer of finance. Your home may be repossessed if you do not keep up repayments on your mortgage.

## Frequently asked questions about probate loans

**Q: What is a probate loan?**

faq-id: what-is-a-probate-loan

A probate loan is short-term finance that lets an estate's executors, or a beneficiary, use the value of an inheritance before the estate is wound up, repaid from the estate once the grant is issued and the assets are sold. The term covers three arrangements: an executor loan to pay Inheritance Tax and other costs before the grant, an inheritance advance that pays a beneficiary part of their share early, and a bridging loan secured on estate property after the grant. HMRC's Direct Payment Scheme, which pays the tax from the deceased's accounts, and its instalment option on property may remove the need to borrow.

**Q: How does a probate loan work?**

faq-id: how-does-a-probate-loan-work

A probate loan is assessed mainly on the estate, which is the source of repayment. For an executor loan, the lender looks at the estate's value, debts and timetable to the grant, may deal through the estate's solicitor, advances what is needed for Inheritance Tax or costs, and is repaid from the first assets sold after the grant. Interest is usually rolled up, so there are no monthly payments, and some lenders ask the solicitor for an undertaking to repay from the estate. A bridging loan after the grant is secured on estate property and repaid on sale or refinance.

**Q: What is an inheritance advance?**

faq-id: what-is-an-inheritance-advance

An inheritance advance is a lump sum paid to a beneficiary now against part of their expected inheritance, with the provider paid by the executors when the estate distributes. Some providers buy part of the beneficiary's share by assignment, so there are no repayments and the provider's fee is deducted from the share at the end. Others lend against the expected share, and a loan to an individual can be regulated consumer credit. The agreement states which it is, and whether the beneficiary is liable if the estate turns out smaller than expected.

**Q: Can I get an advance on my inheritance in the UK?**

faq-id: can-i-get-an-advance-on-my-inheritance-in-the-uk

Yes, where your entitlement under a will or the intestacy rules is confirmed by the executors or their solicitor, the estate is not disputed, and the amount sits within the provider's limit, which is set as a proportion of what you expect to inherit. Providers look mainly at the estate, because it repays them, and some make no credit check. Whether a provider covers Scotland or Northern Ireland varies. The cost is a fee or interest, deducted from your share when the estate distributes.

**Q: Is an inheritance advance a loan?**

faq-id: is-an-inheritance-advance-a-loan

Not when it is written as a sale. Under a sale or assignment, the beneficiary transfers part of their entitlement for a lump sum, makes no repayments and pays a fee in place of interest. Providers generally present that as a sale and not a loan, though an agreement that makes you repay a shortfall can be credit. Some providers make a loan against the expected inheritance instead, which is credit and can be regulated where the borrower is an individual. The agreement says which it is, and the protections differ, so check before signing.

**Q: Can I get a loan against my inheritance?**

faq-id: can-i-get-a-loan-against-my-inheritance

Yes, in three ways. A beneficiary can take an inheritance advance, written either as a sale of part of the share or as a loan. Executors can take an executor loan as personal representatives to pay Inheritance Tax before the grant. Once the grant is issued, or once the property is in your name, a bridging loan or mortgage can be secured on the inherited property. Each has its own rules on cost, liability and FCA regulation, and HMRC's Direct Payment Scheme may remove the need to borrow for the tax at all.

**Q: How much can I borrow against an inheritance?**

faq-id: how-much-can-i-borrow-against-an-inheritance

Each lender or provider sets its own limit, on a different basis for each product. An inheritance advance is limited to a proportion of your confirmed share. An executor loan is usually sized to the tax and costs due, within a proportion of the estate's net value. Bridging or a mortgage after the grant is limited by the lender's loan-to-value on the property and, for a mortgage, by affordability. Where the estate has money in the bank, the Direct Payment Scheme may reduce or remove the amount needed for the tax.

**Q: Can I get a small inheritance advance?**

faq-id: can-i-get-a-small-inheritance-advance

Yes, some providers advance a few thousand pounds, and the minimum varies by provider. The structure is the same as for a larger advance: the provider is paid from your share when the estate distributes, and under a sale or assignment you make no repayments. A fixed arrangement fee is a bigger part of a small sum, so compare providers on the total that will be deducted from your share at distribution, with every fee included.

**Q: Do I need a credit check for a probate loan?**

faq-id: do-i-need-a-credit-check-for-a-probate-loan

Not always. Inheritance advances and executor loans are assessed mainly on the estate, because the estate repays them, and some providers make no credit check or only a light one. Bridging loans and mortgages on inherited property after the grant are assessed on the borrower and the property in the usual way, including a credit check. A loan that is regulated consumer credit also comes with the creditworthiness checks the FCA rules require of the lender.

**Q: Who repays a probate loan?**

faq-id: who-repays-a-probate-loan

The estate repays most probate finance. An executor loan is repaid from the first assets sold after the grant, sometimes under an undertaking from the estate's solicitor. An inheritance advance is settled by the executors from the beneficiary's share when the estate distributes. A bridging loan on inherited property is repaid by the borrower, usually from the sale of the property or by refinancing onto a mortgage, and a mortgage is repaid by the borrower in the normal way.

**Q: Can executors get a loan to pay Inheritance Tax?**

faq-id: can-executors-get-a-loan-to-pay-inheritance-tax

Yes. Executors can borrow as personal representatives to pay the tax due before the grant where the deceased's accounts cannot cover it, and repay from the first assets sold. Interest on a loan used to pay the tax due when the IHT400 is delivered can be set against the estate's income for the first 12 months ([Income Tax Act 2007, sections 403 and 404](https://www.legislation.gov.uk/ukpga/2007/3/section/403)). Check first whether the Direct Payment Scheme can pay the tax from the deceased's own money, and whether HMRC will agree a grant on credit if the estate cannot release funds at all.

**Q: Do you have to pay Inheritance Tax before probate?**

faq-id: do-you-have-to-pay-inheritance-tax-before-probate

Usually, yes. At least part of the Inheritance Tax is paid before the grant: the tax on cash, shares and other assets that cannot be paid by instalments, and any instalment on property that has already fallen due, the first being due at the end of the sixth month after the death. In England and Wales HMRC then sends a unique code that the probate application needs. Tax paid after the end of the sixth month carries interest. If the estate cannot release funds, HMRC can agree to postpone payment and support a grant on credit ([gov.uk: grant on credit](https://www.gov.uk/guidance/applying-for-a-grant-on-credit-for-inheritance-tax)).

**Q: What is the Direct Payment Scheme?**

faq-id: what-is-the-direct-payment-scheme

The Direct Payment Scheme lets banks, building societies and investment providers, such as National Savings and Investments, brokers and wealth managers, pay some or all of the Inheritance Tax straight to HMRC from the deceased's accounts before the grant. The personal representatives get an Inheritance Tax payment reference number, send form IHT423 to each provider and send the IHT400 to HMRC. It uses the deceased's own money rather than borrowing, but not every provider is part of the scheme ([gov.uk: pay from the deceased's accounts](https://www.gov.uk/paying-inheritance-tax/deceaseds-bank-account)).

**Q: Can Inheritance Tax be paid in instalments?**

faq-id: can-inheritance-tax-be-paid-in-instalments

Yes, on land and buildings, some shares and businesses, and property that qualifies for business or agricultural relief. You choose instalments on the IHT400 and pay in 10 equal yearly amounts, the first due at the end of the sixth month after the death. Interest is charged on the outstanding balance with each later instalment, except that for assets inherited from 6 April 2026, instalments on property qualifying for business or agricultural relief are interest-free if paid on time. The rest falls due when the asset is sold ([gov.uk: yearly instalments](https://www.gov.uk/paying-inheritance-tax/yearly-instalments)).

**Q: How long does probate take?**

faq-id: how-long-does-probate-take

Once the application is made, the Probate Registry usually issues the grant within 12 weeks, and it takes longer if more information is needed ([gov.uk: applying for probate](https://www.gov.uk/applying-for-probate)). Where Inheritance Tax is due, the IHT400 goes to HMRC first and the executors wait for HMRC's code before applying, so the time to value the estate and deal with HMRC comes on top. A caveat or a dispute adds months, and collecting the assets and distributing the estate follow the grant.

**Q: What does a probate loan cost?**

faq-id: what-does-a-probate-loan-cost

Each lender or provider quotes its own terms, and the charge differs by product. An executor loan usually charges interest on the sum advanced, rolled up and repaid by the estate. An inheritance advance written as a sale of part of a share charges fees deducted from the share at distribution. Bridging on inherited property charges a monthly rate set for the loan-to-value and the exit. Compare each with HMRC's late payment interest on Inheritance Tax, Bank Rate plus 4 percentage points, which was 7.75% a year as at October 2026, and with the Direct Payment Scheme, which uses the deceased's own money.

**Q: Can I get a probate loan if the will is disputed?**

faq-id: can-i-get-a-probate-loan-if-the-will-is-disputed

Usually not while the dispute is open. In England and Wales a caveat entered at the Probate Registry stops any grant for 6 months and can be extended, and a contested will or a claim under the Inheritance (Provision for Family and Dependants) Act 1975 leaves the entitlements uncertain; Scotland and Northern Ireland have their own rules. Lenders and advance providers generally wait until it is resolved, after which the usual products are available. The estate's solicitor can say where the dispute stands ([gov.uk: stopping a probate application](https://www.gov.uk/stop-probate-application)).

**Q: Can I get a bridging loan on an inherited property?**

faq-id: can-i-get-a-bridging-loan-on-an-inherited-property

Yes, once the grant has been issued. In England and Wales, HM Land Registry will not register a disposition such as a charge by an executor before probate, or by an administrator before letters of administration; Scotland and Northern Ireland have their own registers, and there the executors also need confirmation or the grant first. The loan can pay Inheritance Tax still owed on the property, settle estate debts, fund work before a sale or let one beneficiary buy out the others, and it is repaid on sale or by refinancing onto a mortgage. A bridging loan to an individual secured on a house is normally a regulated mortgage contract, unless it is taken for a business purpose and no borrower or close relative will live there.

**Q: Can I get a mortgage to buy out other beneficiaries?**

faq-id: can-i-get-a-mortgage-to-buy-out-other-beneficiaries

Yes. A beneficiary who keeps an inherited property can borrow to pay the others for their shares, and lenders differ on whether they count the share already inherited as the deposit and lend against the full value. A residential mortgage applies where you will live in the property and a buy to let mortgage where you will let it, assessed mainly on the rent. Affordability, the valuation and the lender's rules on how the transfer is documented all apply in the usual way.

**Q: Can you get a mortgage on an inherited house?**

faq-id: can-you-get-a-mortgage-on-an-inherited-house

Yes. Once the grant is issued, the personal representatives can borrow against estate property, and once the property has been transferred into your name you can mortgage it like any other home, subject to the lender's affordability, valuation and title checks. A residential mortgage applies if you will live there and a buy to let mortgage if you will let it. Any existing mortgage on the property has to be repaid or refinanced, and lenders differ on how long you must have owned a property before they will remortgage it.

**Q: Are probate loans regulated by the FCA?**

faq-id: are-probate-loans-regulated-by-the-fca

Some are and some are not, depending on who borrows and what secures the loan. A loan to individuals, including executors borrowing in their own names, can be regulated consumer credit unless an exemption applies. A mortgage or bridging loan to an individual secured on a home is normally a regulated mortgage contract even if nobody in the family will live there, unless it is taken wholly or mainly for a business and no borrower or close relative will live in it ([Regulated Activities Order, article 61](https://www.legislation.gov.uk/uksi/2001/544/article/61)). Lending to a company acting as executor falls outside both. Providers generally present an inheritance advance that buys part of a share as a sale, though one that makes you repay a shortfall can be credit.

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Published: 2026-10-06

Last reviewed: 2026-10-08

Source: https://mortgagelane.com/mortgages/probate-loans