Can you sell your house before paying off the mortgage? Absolutely yes—and you’re certainly not alone if this is a path you’re considering, as most homeowners in the UK opt to sell their properties long before their 25 or 30-year mortgage terms conclude, whether due to growing families, career relocations, or simply wanting a change of scenery.
The UK currently has approximately 10.94 million active mortgages, with the average outstanding mortgage balance per household sitting at £193,867 for those with a home loan. As of early 2025, mortgage lending for house purchases represents about 60.86% of all UK mortgage lending, while remortgaging accounts for roughly 34.59%. The average mortgage term runs between 25-30 years, yet most homeowners sell their properties much sooner, with the typical homeowner moving every 7-10 years.
Table of Contents
How does the whole process work when selling a house that still has a mortgage?
The process involves determining how much you still owe on your mortgage, getting your property valued, deciding whether to pay off or port your mortgage, putting your home on the market, accepting an offer, and completing the sale. Your solicitor will handle the legal aspects, including coordinating with your lender to settle the mortgage. The key is ensuring your sale price will cover your outstanding mortgage plus any early repayment charges.
When you decide to sell your property before clearing your mortgage debt, you’re entering a completely normal and well-established process. Most property sales in the UK involve homes with outstanding mortgages. The critical factor isn’t whether you’ve paid off your home loan, but rather if your property’s current market value exceeds your remaining mortgage balance.
The fundamental concept is straightforward: when you sell your home, the proceeds from the sale will first go toward paying off whatever remains on your mortgage. If your house sells for more than you owe (which is usually the case in a healthy property market), you’ll receive the difference as profit that can be used toward your next property purchase or for other purposes.
For example, if your home sells for £350,000 and you still owe £200,000 on your mortgage, you’ll receive approximately £150,000 after the mortgage is paid off (minus any selling costs and fees).
What Happens To Your Mortgage When You Sell Your House?
What happens to my mortgage when I sell my house? This question concerns many homeowners contemplating a move. The process typically unfolds as follows:
Before listing your property, contact your lender for a “redemption statement” or “payoff statement”
This document details exactly how much you’ll need to pay to settle your mortgage completely
Your solicitor will handle the mortgage repayment during the completion process
The funds from your buyer will be used to clear your outstanding mortgage
Any remaining money (after fees and costs) will be transferred to you
Your solicitor plays an essential role in this process, coordinating with your lender to ensure the mortgage is properly discharged when the sale completes. This is why having a competent solicitor is essential when selling a property with an outstanding mortgage.
Is it possible to move my current mortgage to a new home?
Yes, this is called “porting” your mortgage. Rather than paying off your current mortgage and starting afresh, porting allows you to keep your existing interest rate and terms when moving to a new property. This can be particularly beneficial if you’re on an attractive interest rate that would be difficult to match with a new mortgage deal.
When selling a house with a mortgage, you have two main options:
Repaying your existing mortgage
The most common approach is to use the proceeds from your property sale to pay off your current mortgage entirely. Once this is done, you’re free to apply for a new mortgage for your next property purchase if needed.
Porting your mortgage
Many mortgages are “portable,” meaning you can essentially transfer your existing mortgage deal to your new property. This can be particularly advantageous if you’re currently on a favorable interest rate that would be difficult to match with a new mortgage application.
The table below compares these two approaches to help you understand which might work better for your circumstances:
| Feature | Repaying Existing Mortgage | Porting Your Mortgage |
|---|---|---|
| Interest Rate | Potential for better or worse rates on new mortgage | Keep your existing rate on the ported amount |
| Flexibility | Complete freedom to shop around for new deals | Limited to lenders who allow porting |
| Early Repayment Charges | May incur penalties if still in fixed term | Can typically avoid early repayment charges |
| Additional Borrowing | Fresh application for full amount | May need to blend rates for additional borrowing |
| Process Complexity | Simpler process with clean break | Can involve more paperwork and affordability checks |
When deciding between these options, consider your current interest rate, whether you’re in a fixed-term period with early repayment charges, and how much you’ll need to borrow for your next property. Your mortgage advisor can help you calculate which approach makes the most financial sense for your specific situation.
When Do You Stop Paying Mortgage When Selling House?
When do you stop paying mortgage when selling house? This is a practical concern for those managing their finances during a property transition. You remain legally responsible for making your regular mortgage payments right up until completion day, when your solicitor pays off the mortgage in full from the sale proceeds.
This means you’ll need to maintain your direct debit or standing order until the sale completes. After completion, your lender will cancel any future payments automatically. If you’re concerned about timing, speak with your solicitor about the exact date of your final payment to avoid any overlaps or gaps.
For those wondering “do you have to pay off mortgage balance once you sell?”—yes, the mortgage must be completely settled during the sale process. The good news is that this happens automatically as part of the legal completion, with your solicitor handling the details.
Can You Sell A House Before The Mortgage Is Paid Off If You’re In Negative Equity?
Selling a property when you owe more on your mortgage than the current market value—known as negative equity—presents significant challenges. While it’s technically possible to sell your house before the mortgage is paid off in these circumstances, you’ll need to find a way to cover the shortfall.
For example, if you owe £250,000 on your mortgage but your property will only sell for £230,000, you’ll need to find the additional £20,000 from your savings or other sources to pay off the mortgage completely.
Options for those in negative equity include:
Waiting until property values increase or paying down more of the mortgage
Speaking to your lender about a “shortfall sale” where they may accept a reduced payment
Using savings to cover the difference between the sale price and mortgage balance
In some cases, transferring the negative equity to a new mortgage (though this is relatively rare)
If you’re facing negative equity, speaking with both your mortgage lender and a financial advisor before making any decisions is highly recommended.
The Step-By-Step Process Of Selling A House Before Paying It Off
If you’re planning to sell your house before paying off the mortgage, understanding the process can help reduce stress and ensure everything goes smoothly. Here’s what you can expect:
Contact your mortgage lender for a redemption statement showing your current balance
Check for any early repayment charges that might apply
Arrange a valuation of your property to determine its current market value
List your property for sale, ideally at a price that will cover your mortgage plus costs
Once you accept an offer, instruct a solicitor to handle the conveyancing
Your solicitor will request an up-to-date redemption figure from your lender
On completion day, your solicitor will use the buyer’s funds to pay off your mortgage
Any remaining proceeds will be transferred to your account
Your mortgage will be discharged and the property registry updated
Throughout this process, maintaining open communication with your lender, estate agent, and solicitor is essential for a smooth transaction.
Is It Worth Selling If You’ve Paid Off 80% Of Your Mortgage?
If you have paid off 80% of your mortgage, is it worth selling? This question depends on your personal circumstances and financial goals. Having paid off 80% of your mortgage means you’ve built substantial equity in your property, which can provide a significant deposit for your next purchase.
The advantages of selling at this stage include having more equity to put toward your next property, potentially allowing you to borrow less on your next mortgage and secure more favorable terms. You might also be able to move to a more desirable location or larger property than would otherwise be possible.
However, the decision should consider various factors beyond just how much of your mortgage you’ve paid off:
Your reasons for wanting to move
Current property market conditions
The costs associated with selling and buying
Your long-term housing and financial goals
Whether your current mortgage has favorable terms worth keeping
There’s no one-size-fits-all answer to whether it’s “worth it” to sell after paying off 80% of your mortgage. What matters most is whether selling aligns with your personal and financial objectives.
Should I Sell My House To Pay Off Debt?
Should I sell my house to pay off debt? This significant financial decision merits careful consideration. Using home equity to clear other debts can make mathematical sense if the interest rates on your other debts (like credit cards or personal loans) are substantially higher than your mortgage rate.
However, this approach comes with important trade-offs. Selling your primary residence means you’ll need to find somewhere else to live, potentially increasing your monthly housing costs if you need to rent or take on a new mortgage. You’ll also face the transaction costs of selling, including estate agent fees, solicitor costs, and potentially stamp duty on a new purchase.
Before deciding to sell your house to pay off debt, consider these alternatives:
Remortgaging to release equity without selling
Consolidating debts with a personal loan at a lower interest rate
Negotiating with creditors for better repayment terms
Seeking advice from a debt charity or financial advisor
If after considering all options selling still seems like the best choice, ensure you have a clear plan for your housing situation after the sale and for avoiding accumulating new debt in the future.
Can I Transfer My Mortgage To Another Person?
Can I transfer my mortgage to another person? This process, known as a mortgage assumption or transfer, is actually quite rare in the UK residential mortgage market. Most UK mortgages contain a “due on sale” clause that requires the loan to be repaid when the property changes hands.
There are limited exceptions, such as transferring a mortgage to a spouse during divorce proceedings or adding/removing a partner from a joint mortgage. Even in these cases, the lender will typically require the new borrower to go through their full affordability assessment.
If you’re hoping to transfer your mortgage to someone else, speak directly with your lender about their specific policies. Be prepared that in most cases, the new owner will need to apply for their own mortgage rather than taking over yours.
When Selling A Property With Outstanding Mortgage, Do You Pay Off The Remaining Capital And Interest Owed Over Entire Remaining Period?
No, you don’t need to pay the full amount of interest that would have accrued over the entire mortgage term. When you sell a property with an outstanding mortgage, you only pay the current balance owed—the principal remaining plus any interest accrued up to the day of repayment. You don’t pay future interest that would have accumulated had you kept the mortgage for its full term.
This is good news for sellers, as it means you’re not penalised for repaying early (apart from any specific early repayment charges that might apply during fixed-rate periods). The redemption statement from your lender will show exactly how much you need to pay to settle the mortgage completely.
Is It Normal For My Mortgage Bill To Go Up Every Year?
Is it normal for my mortgage bill to go up every year? Yes, this can be normal depending on your mortgage type. Several factors might cause annual increases:
For those with variable-rate or tracker mortgages, payments will increase when interest rates rise, which has been the case in recent years. Even for fixed-rate mortgages, if you have insurance premiums or property taxes included in your monthly payment, these components often increase annually.
Some mortgages also have built-in payment escalation features, and if you’ve reached the end of a promotional fixed-rate period, you’ll typically see a significant jump when moving to the lender’s standard variable rate.
If you’re concerned about rising payments, review your mortgage statement carefully to understand what’s driving the increases. Speaking with your lender or a mortgage advisor can help clarify whether the increases are expected and explore options for keeping your payments more manageable.
Do I Need A Solicitor To Pay Off My Mortgage?
Do I need a solicitor to pay off my mortgage? When selling a property, yes—a solicitor or licensed conveyancer is essential to handle the legal aspects of paying off your mortgage. They’ll request the redemption statement, ensure the correct amount is paid to your lender from the sale proceeds, and confirm that the mortgage has been properly discharged.
If you’re simply paying off your mortgage early without selling (perhaps because you’ve come into some money), you can typically do this directly with your lender without involving a solicitor. However, even in this case, having legal assistance can be helpful to ensure the property registry is properly updated to show the mortgage has been cleared.
Can I sell my house if I haven’t finished paying my mortgage yet?
Absolutely! You can sell your property at any time, even if you’re nowhere near paying off your mortgage. Most homeowners in the UK sell their properties before fully repaying their mortgages. You simply need to ensure the sale price covers your outstanding mortgage balance, or you have funds available to make up any shortfall.
What actually happens to my mortgage when I sell my property?
When you sell your home, the proceeds from the sale will typically be used to pay off your existing mortgage in full. Your solicitor will work with your lender to settle the outstanding balance, and any remaining money will come to you. This happens during the completion process, so you don’t need to worry about making separate arrangements.
What should I do if my house is worth less than what I owe on the mortgage?
If you’re in negative equity (where your property value has fallen below your outstanding mortgage amount), selling becomes more challenging. You’ll need to cover the shortfall yourself, which might mean using savings or taking out a separate loan. It’s worth speaking directly with your lender, as they may offer options such as a payment plan or accept a reduced repayment through a short sale arrangement.
Will I face penalties for selling my home before the mortgage term ends?
You might do. Many mortgages come with early repayment charges, especially if you’re still within a fixed, tracker or discount period. These charges are typically a percentage of the outstanding balance and can add up to thousands of pounds. Check your mortgage agreement or speak with your lender to understand what charges might apply in your situation.
Selling Your House Before Paying Off The Mortgage?
Are you feeling stuck with a mortgage but need to sell your property? At Property Saviour, we’ve been helping homeowners long before property solutions became ‘fashionable’. Having assisted countless people through challenging situations—from removing historic charges on property titles to dealing with problematic tenants—we understand how overwhelming it can feel when you need to sell your house before paying off your mortgage.
Our cash offer service eliminates the stress of traditional property sales. No need to worry about mortgage settlements, solicitor delays or chains breaking down. We cover all legal fees, can complete in as little as 7 days, and guarantee the price we offer—giving you the certainty and breathing space to move forward with your life. Plus, you’ll never face any agent fees or hidden costs.
There’s something truly rewarding about helping someone out of a difficult situation—it’s what gives us a real buzz each day. If you’re looking for a straightforward solution to selling your property with an outstanding mortgage, ring our friendly team today on 01134035336 . We promise to make the entire process simple and hassle-free, putting cash in your bank when you need it most.
Sell with certainty & speed
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.
