When someone passes away and leaves you money or property, it should be a time of remembrance – not financial stress.
Yet the reality for many beneficiaries is quite different. You might be waiting months for probate to be granted while bills pile up or inheritance tax deadlines loom.
The wait for inheritance can be both frustrating and financially challenging.
With probate taking 9-12 months (and sometimes longer for complex estates), you might need those funds sooner to pay inheritance tax, maintain a property, or cover living expenses you’d planned to finance with your inheritance.
This guide explores whether banks offer inheritance loans, what alternatives exist, and how to access money tied up in an estate before probate completes.
What is Probate and Why Does it Take So Long?
Probate is the legal process that happens after someone dies.
It’s how their money, property and possessions are collected, their debts paid, and their remaining assets distributed to heirs.
The person handling this (called the executor if named in a will, or administrator if not) must get official permission through a document called a Grant of Probate.
The 9-12 month timeline for probate feels painfully slow when you’re waiting for an inheritance, but several unavoidable steps cause these delays:
First, every asset must be found and valued – from bank accounts and investments to property and personal items. This means contacting banks, getting valuations, and hunting down all assets.
Then there’s tax. Inheritance tax must be calculated, filed with HMRC, and paid before the estate can be distributed. This alone can take months.
UK law also requires a waiting period after probate is granted to allow any creditors to come forward with claims.
If property needs to be sold, you’re looking at additional months for the sale process to complete.
Finally, the government offices processing probate applications often have backlogs, adding further delays.
These legal requirements protect everyone involved, but they create real hardship for beneficiaries who need their inheritance sooner – which is exactly why inheritance loans were created.
Read more: The Probate Process Explained
Understanding Inheritance Loans
Inheritance loans (often called probate loans or estate loans ) provide early access to money from an expected inheritance before probate is approved. Unlike standard personal loans, these are secured against your inheritance rather than your personal finances or home.
These aren’t loans in the traditional sense.
You won’t make monthly repayments, and lenders don’t check your credit score or income situation.
Instead, the loan is repaid directly from your inheritance when the estate is settled, with the lender taking on the risk that the estate might take longer to settle than expected or that values might change.
Interest is charged each month on the amount you borrow. When the loan is finally repaid the lender claims the original debt plus all of the accrued interest.
Most inheritance loans provide upto 50% to 60% of your expected inheritance value. For example, if you’re due to inherit £100,000, you might access £50,000 right away, giving you funds that are technically yours but currently tied up in legal processes.
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High Street Banks and Inheritance Loans
If you’re hoping to walk into your local bank branch and ask for an inheritance loan, you’ll likely be disappointed.
Most major banks don’t offer dedicated inheritance or probate loan products for several reasons.
High street banks prefer standardised lending products that fit neatly into their risk models. Inheritance loans require specialist knowledge of probate processes and estate law, plus a different approach to risk assessment. Since these loans are repaid from the estate rather than through regular payments, they don’t fit the usual banking model.
Banks also face regulatory constraints around secured lending, and many see the probate lending market as too small to develop specific products. When banks do lend to beneficiaries, they usually offer standard personal loans based on income and credit history, not loans secured against future inheritance.
This doesn’t mean banks never help in these situations.
Some may consider your inheritance as part of a broader financial discussion, but they rarely have specific inheritance loan products.
Where to Find Inheritance Funding Instead
While high street banks might not cater to this need, a range of specialist lenders do focus on inheritance and probate finance.
Bridging finance companies specialise in short-term property-backed loans. They’re comfortable with the uncertainty of probate timeframes and often have experience with property inheritances. However, you are not allowed to secure debt against a property before probate is approved.
Dedicated probate lenders focus exclusively on inheritance scenarios. These specialist firms understand the complexities of estates and can make quick decisions based on probate documents.
Private banks might consider inheritance lending for high-value estates, especially for clients with whom they have existing relationships.
These specialist lenders fill the gap left by high street banks with underwriting processes designed specifically for inheritance scenarios.
Four Ways to Borrow While Waiting for Probate
The lending market offers various types of inheritance finance, each designed for different situations you might face during probate.
Inheritance advances
Inheritance advances give beneficiaries named in a will early access to their share. If you’re due to receive money or assets from an estate, an advance gives you a portion immediately. The lender takes on the risk and timeframe uncertainties, so you get funds without waiting for probate to finish.
Executor loans
Executor loans help if you’re responsible for managing an estate. As an executor, you might need to pay inheritance tax, funeral expenses, or maintenance costs before estate assets can be liquidated. These loans are repaid from the estate assets and can help with cash flow during administration.
Bridging loans
Bridging loans come into play when property is involved. If you’ve inherited a house or flat, a bridging loan secured against it can release equity quickly – perfect if you plan to sell eventually but need funds immediately. You can’t borrow against any property until probate is granted. This is why many executors use short-term loans against their own homes, to cover necessary estate payments.
Estate expense loans
Estate expense loans cover specific costs related to the estate itself. These might include legal fees, property repairs, IHT, or other expenses needed to prepare assets for distribution or sale.
How Inheritance Loans Really Work
Inheritance loans function differently from standard bank loans, with a unique process from application to repayment.
The application begins when you contact a specialist broker.
You’ll need to provide documentation proving your entitlement to an inheritance – including the death certificate, the will (if one exists), confirmation that probate has been applied for, and details of your inheritance share.
Lenders won’t look into your personal finances, instead, they’ll assess the estate’s value, the certainty of your inheritance, and any risks that might affect payment.
They’re essentially lending against the estate rather than to you personally.
Once approved, funds are usually released quickly – often within 7-10 days, sometimes even faster. This speed is one of the main advantages compared to waiting for probate.
The loan amount generally ranges between 25% and 60% of your expected inheritance. Estates with clear, liquid assets like cash or marketable securities might qualify for higher percentages than those with property or complex assets.
Repayment happens automatically once probate is granted.
The executor pays the lender directly from your share of the estate, including the agreed interest and fees. You won’t make monthly payments, and there’s usually no option to repay early (unless probate completes sooner than expected).
If probate takes longer than anticipated the lender will keep charging interest, reducing your share.
Similarly, if complications reduce your inheritance value, lenders can’t pursue your personal assets to make up the difference.
Why You Can’t Secure a Loan on Property During Probate
You can’t secure a mortgage or loan on property during probate for one simple reason: you don’t legally own it yet.
Even if you’re named in the will to inherit a property, it remains in the deceased’s name until probate completes and the Grant of Probate is issued. The Land Registry won’t transfer ownership to you until this happens.
Banks and traditional lenders won’t provide loans on property you don’t legally own. They require clear title and established ownership before lending, which is impossible during the probate process.
This is why specialist inheritance lenders exist – they’re set up to work with these unique circumstances when standard banks simply can’t help.
What You’ll Pay
Inheritance and probate loans come with various costs that affect the total amount you’ll ultimately receive.
Interest charges form the main cost element. These are higher than normal because of the additional risk and uncertainty. Rather than being quoted as an APR, rates are expressed as monthly figures.
Arrangement fees of around 2% cover setting up the loan.
Legal fees are necessary because the lender needs their own legal representation to secure their interest in the estate. You’ll generally cover both your legal costs and those of the lender.
Administration fees might be charged for managing the loan throughout the probate process.
All these costs will be deducted from your inheritance so you won’t need to find the money to pay them separately.
When Inheritance Loans Make Sense
Inheritance loans serve various people in different circumstances.
You might consider one if:
You’re an executor facing an inheritance tax bill.
UK inheritance tax must be paid within six months of death, but probate usually takes longer than this. An executor loan can help meet this obligation without personal financial strain.
You’re a beneficiary with pressing financial needs.
Perhaps you were relying on an inheritance to pay off debts, fund education, or cover medical expenses. An inheritance advance can bridge this gap.
The estate property needs immediate attention.
Buildings left empty can deteriorate or face insurance issues. A property might need repairs before it can be sold or let. Executor loans can provide the money to keep them in good order.
Sarah inherited her mother’s house and as executor, she needed to pay an inheritance tax bill of £50,000 before she could complete probate and sell the property. Without personal savings to cover this, an executor loan secured against the property allowed her to pay the tax and proceed with probate, ultimately saving her money by preventing penalties and allowing a quicker sale.
Your personal circumstances will determine whether an inheritance loan makes sense, considering both the urgency of your need and the cost of accessing funds early.
Other Ways to Access Money During Probate
Before committing to an inheritance loan, consider these alternatives that might better suit your needs.
Personal loans from banks work well if you have good credit and stable income. These aren’t secured against your inheritance, so you’ll make regular repayments regardless of when probate completes. The advantage is potentially lower interest rates than specialist inheritance products.
Family arrangements are often overlooked but can be effective. Other beneficiaries or family members who aren’t cash-strapped might lend you money against your future inheritance share. This keeps costs within the family and offers more flexibility.
Executor advances are sometimes possible for essential expenses. If you need money for funeral costs or property maintenance, the executor might be able to release funds early with court approval.
Partial distributions occasionally happen before probate completes. For estates with some liquid assets, executors might distribute some funds early while keeping enough in reserve for potential claims or taxes.
Credit cards or overdrafts can bridge very short-term needs, though they become expensive for longer periods.
What You Should Know About Inheritance Finance
Several misunderstandings surround inheritance loans that need clarification.
You need good credit to qualify
Inheritance loans are secured against the estate, not your personal creditworthiness. While some lenders might perform basic checks, they’re primarily concerned with the inheritance itself. In general, your credit situation won’t affect your ability to get a loan.
You’ll have to make monthly repayments
Most inheritance loans are repaid in one lump sum directly from your inheritance when probate completes. You won’t need to find money for monthly payments.
All inheritance loans work the same way
There are several types of inheritance finance with different structures and purposes. What works for a beneficiary might not work for an executor, and property-based loans differ from cash inheritance advances.
You can borrow the full inheritance amount
Lenders usually advance up to 60% of your expected inheritance to protect themselves against valuation changes or probate complications.
Banks are the best place to get inheritance loans
As we’ve seen, high street banks rarely offer dedicated inheritance loan products. Specialist lenders are usually better equipped to handle these situations.
Executors are personally responsible for repaying loans
Executor loans are repaid from estate assets, not the executor’s personal finances and executors are not required to provide personal guarantees.
How a Broker can Help
Finding the right inheritance finance solution can be challenging, which is where a specialist broker proves valuable.
Brokers have access to multiple lenders, including those who don’t work directly with the public. This wider range of options increases your chances of finding suitable terms.
They understand the market intricacies and can match your specific situation to the most appropriate lenders. Some lenders specialise in certain estate types or inheritance scenarios, and brokers know who to approach for each case.
They provide objective advice about whether an inheritance loan makes financial sense in your situation. A good broker will sometimes advise against borrowing if it’s not in your best interest.
Making Smart Choices
Accessing inheritance money before the probate process has completed can solve immediate financial pressures, but requires careful consideration.
We’ve seen that while traditional banks rarely offer dedicated inheritance loans, specialist lenders provide various financing options. Whether you’re an executor managing estate expenses or a beneficiary waiting for your share, solutions exist for your situation.
Before proceeding, weigh the costs against your need for immediate funds. Consider alternatives like family arrangements or personal loans if they offer better value.
FAQ
Not really. Most high street banks don’t offer specific inheritance or probate related loan products.
They might consider your inheritance as part of a broader financial discussion but rarely have dedicated products secured against future inheritance. Instead, specialist lenders fill this gap with inheritance finance solutions.
The inheritance loan approval process is much faster than probate itself. Once you’ve provided all necessary documentation, many specialist lenders can make decisions within days. Funds are often released within 1-3 weeks of starting your application, compared to the 9-12 months probate typically takes.
Most inheritance loans provide up to 60% of your expected inheritance value. The exact percentage depends on several factors, including the certainty of your inheritance, the complexity of the estate, and whether it includes property or other assets that might fluctuate in value.
No. Unlike other loans, inheritance loans are secured against the estate rather than your personal creditworthiness. While lenders might perform basic checks, they’re primarily concerned with the value and certainty of your inheritance, not your credit history or personal income.
Inheritance loans are repaid in one lump sum directly from your share of the estate when probate completes. The executor pays the lender from your inheritance portion, including the agreed interest and fees. You won’t make any monthly payments.
Yes, one common use for inheritance loans (particularly executor loans) is to pay inheritance tax bills. Since inheritance tax must be paid within six months of death in the UK, but probate often takes longer, these loans help executors meet tax obligations without personal financial strain.
The loan remains in place, with interest added each month. Your repayment still comes from the estate when probate eventually completes, regardless of how long it takes.
Yes, executor loans are specifically designed to help executors manage estate expenses before assets can be liquidated. These might cover inheritance tax, funeral costs, property maintenance, or legal fees. They’re secured against estate assets and repaid from the estate rather than the executor’s personal finances.
Yes.
When offering inheritance loans, lenders need a solicitor to oversee the estate process. The solicitor verifies your legal entitlement to the inheritance, confirming you’re named in the will or entitled under intestacy rules.
They establish legal notices that require the executor to pay the lender directly when the estate settles, before giving you what remains of your share.
This legal oversight provides protection for all parties – ensuring the executor knows about the loan, documenting the lender’s interest properly, and making sure everything follows the correct legal process.
This solicitor involvement creates the legal security that makes inheritance loans possible while you wait for probate to finish.
Still have more questions?
This article provides general information about probate and estate distribution. It is not legal advice. Every estate is unique, and laws can change. Always consult a qualified legal professional or probate specialist before making decisions about estate administration, tax or inheritance.
