Early repayment penalty on death

[annonymousse]

Can anyone tell me if a penalty for early repayment of a mortgage applies if the mortgage holder dies?

My parents had an interest only mortgage that has approximately 10 years to run but dad died and mum is elderly and it's extremely unlikely that she will survive to the end of the mortgage.

If she pays it off now she will be subject to a penalty for early repayment and we were wondering if that would still apply in the event of her death.

As a starting point what do the terms and conditions say?

That's the obvious thing to do but dad took out the mortgage and mum is a bit helpless and doesn't know where anything is. I was just hoping for some general advice really. I realise it will vary with different companies but was looking for "a rule of thumb".

Easiest thing to do is ask them. They need to be alerted to his death anyway as the mortgage holder. Does she have the funds to pay it off?

He died a year ago and they have been alerted. She's had a letter asking her how she intends to pay off the mortgage which has made her anxious. They have agreed she can continue the mortgage on her own so I'm not really sure why they are now asking her plans for payment when there's still 10 years before the end of the mortgage.

Unfortunately she doesn't have the funds to pay it off. There is plenty of equity in her house so in the unlikely position of her surviving til the end of the mortgage she would downsize and no worries about paying it then.

www.nationwide.co.uk/mortgages/existing-mortgage-members/early-repayment-charges/

States you won't be charged ERC if you or spouse dies. Different providers may have different rules but I would imagine this would be the same for most.

Thank you for the answers given. I appreciate your time