Falling behind on your mortgage payments can be a daunting experience, and the thought of losing your home might feel overwhelming. But what if selling your house could be the solution to clear your debts and regain financial stability?
If you’re asking, “Can I sell my house with mortgage arrears?” the good news is that it’s possible—and often a smart way to avoid repossession while taking control of your situation.
In this guide, we’ll break down everything you need to know, from how the process works to what happens if you’re in negative equity. Whether you’re looking for quick answers or long-term strategies, keep reading to find out how selling your property could help you turn things around.
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Can I Sell My House With Mortgage Arrears?
Yes, you can sell your house even if you are in mortgage arrears. For many homeowners, selling their property is a practical way to avoid repossession, settle outstanding debts, and regain financial stability. Saddat says, “Selling your home when you’re in arrears might feel like a tough decision, but it can be the best option to protect your credit score and move forward.”
According to UK Finance, there were 93,680 homeowner mortgages in arrears of 2.5% or more of the outstanding balance at the end of 2023. This highlights the growing number of people facing financial challenges due to rising interest rates and the cost-of-living crisis. Selling your home before repossession allows you to take control of the process and potentially secure a better outcome.
What happens if you sell your house with mortgage arrears?
When you sell a house with mortgage arrears, the proceeds from the sale are used to pay off your outstanding mortgage balance, including any arrears. If there’s money left after settling these debts, it will go to you. However, if your property is in negative equity—meaning its value is less than what you owe—you’ll still need to repay the remaining balance to your lender.
Here’s an overview of what happens during the process:
| Step | Details |
|---|---|
Contact your lender | Inform your lender of your intention to sell and discuss options like pausing repossession action. |
Sell your property | Work with an estate agent or consider a quick cash buyer such as Property Saviour for a faster sale. |
Sell outstanding debt | The solicitor handling the sale will ensure your mortgage balance is paid off from the proceeds. |
Handle any shortfalls | If in negative equity, arrange a repayment plan with your lender for any remaining debt. |
What Does It Mean When A Mortgage Is In Arrears?
Being in mortgage arrears means you’ve missed one or more monthly payments on your home loan. This can lead to late fees, damage to your credit score, and potential legal action from your lender if left unresolved.
The repossession process involves several steps, giving homeowners opportunities to resolve their arrears:
| Stage | Description |
|---|---|
| Notification of Arrears | Lenders send a formal letter detailing missed payments and options for repayment. |
| Default Notice | Issued after three missed payments, giving borrowers 14-28 days to address arrears. |
| Court Proceedings | If no resolution is reached, lenders file for a possession order in court. |
| Possession Order | If granted, homeowners typically have 28-56 days to vacate the property. |
| Eviction | If arrears remain unresolved, bailiffs enforce eviction under court orders. |
How Quickly Can You Sell a House With Mortgage Arrears?
Facing mortgage arrears can be overwhelming, but selling your house quickly is often the best way to avoid repossession and regain control of your finances. The speed of the sale depends on the method you choose, but not all options are created equal when time is of the essence.
Selling through an estate agent can take anywhere from 3 to 6 months—or even longer—depending on market conditions and buyer interest. While property auctions might seem like a faster alternative, they often take weeks to arrange and may leave you with a lower-than-expected sale price. For homeowners in urgent situations, these delays can be costly.
That’s where Property Saviour comes in. As trusted cash buyers, we specialise in completing sales within 7 to 35 days, giving you a hassle-free and speedy solution. No chains, no delays—just a straightforward process that helps you settle your debts and move forward with peace of mind. If time is running out, Property Saviour could be the lifeline you need.
What Should I Do If I Can’t Pay My Mortgage?
Falling behind on your mortgage can feel like the end of the road, but there are steps you can take to regain control. The first and most important move is to contact your lender immediately. Many lenders are willing to work with you, offering options like payment holidays or reduced payments to help ease the pressure.
You should also seek advice from trusted organisations such as Citizens Advice or StepChange, who provide free guidance tailored to your situation. Additionally, government schemes like Support for Mortgage Interest (SMI) may offer financial relief by covering part of your mortgage interest if you’re eligible.
If repayment simply isn’t feasible, selling your home before repossession proceedings begin could be the smartest move. Property Saviour can help you sell quickly and hassle-free, often completing the process in as little as 10 days. Acting now could save you from further financial strain and give you the fresh start you need.
Can You Sell Your House If You’re in Negative Equity?
Yes, it’s possible to sell even if you’re in negative equity. However, you’ll need permission from your lender since the sale won’t cover the full mortgage balance. Any shortfall will need to be repaid through an agreed plan with your lender.
What Happens If You Stop Paying Your Mortgage?
Missing mortgage payments can quickly spiral into serious consequences if left unaddressed. Initially, your lender will contact you to discuss the missed payments and explore potential solutions. However, if the arrears continue for several months without resolution, they may begin repossession proceedings.
Repossession means your home could be taken and sold at auction, often for less than its market value. This can leave you not only without a home but also responsible for any remaining debt if the sale doesn’t cover the full mortgage balance.
To avoid this outcome, it’s essential to act quickly. Property Saviour offers a lifeline by helping you sell your home fast—often within 10 days—so you can settle your debts and avoid the devastating impact of repossession. Don’t wait until it’s too late; take control of your situation today.
How to Avoid Repossession When You’re in Arrears?
Selling your house when you’re in mortgage arrears can feel overwhelming, but it’s often the best way to regain control of your finances and avoid repossession. Whether working with an estate agent or opting for a quick cash sale, acting promptly and seeking professional advice can help secure a positive outcome for both you and your lender.
- If selling isn’t an option or you need more time:
- Request a repayment plan from your lender.
- Apply for government assistance.
- Seek legal advice if repossession proceedings have started.
Stop Repossession in Its Tracks – Take Action Today!
Worried about losing your home? You’re not alone. With repossessions rising by 54% in just three months, thousands of families across the UK are facing the same fear. But here’s the thing—there’s still time to take control and protect your future.
If you’re struggling to keep up with payments, don’t wait for things to spiral further. Acting quickly can make all the difference. Forget the stress of endless estate agent viewings or the unpredictability of property auctions. There are faster, more reliable options available to help you avoid repossession and move forward.
Selling your home to a trusted cash buyer could be the lifeline you need. With no chains, no delays, and no hassle, it’s possible to sell your property in as little as 10 days. That means no more sleepless nights worrying about what comes next—just a clear path to financial stability.
The clock is ticking, but it’s not too late to take action. Don’t let your lender decide your fate—explore your options today and take the first step towards a fresh start.
Property Saviour Price Promise
- The price we’ll offer is the price that you will receive with no hidden deductions.
- Be careful with ‘cash buyers’ who require a valuation needed for a mortgage or bridging loan.
- These valuations or surveys result in delays and price reductions later on.
- We are cash buyers. There are no surveys.
- We always provide proof of funds with every formal offer issued.
We'll Pay £1,500 Towards Your Legal Fees
- No long exclusivity agreement to sign because we are the buyers.
- You are welcome to use your own solicitor.
- If you don’t have one, we can ask our solicitors for recommendations.
- We share our solicitor’s details and issue a Memorandum of Sale.
Sell With Certainty & Speed
- Our approach is transparent and ethical, which is why sellers trust us.
- 100% Discretion guaranteed.
- If you have another buyer, you can put us in a contracts race to see who completes first.
- Complete in 10 days or at a timescale that works for you. You are in control.
