If the mortgage is paid off early due to my death, is there a break fee?

[BigBoots82]

Hey everyone. Appreciate your thoughts on what the break cost position might be if say my wife and I jointly have a 20 year fixed mortgage and I die in year 10. Could the realisation of the life cover against the loan amount outstanding at the time give rise to a break cost? Thanks

 

[Monbretia]

Yes I would think so, if you are closing the mortgage for any reason you are breaking the fixed term contract and a break cost should be applicable, however that is not to say that the bank might in the circumstances waive the fee on compassionate grounds but not a given I wouldn't think!