Of course you can sell a house with a mortgage still on it. In fact, it's how most property sales in the UK happen. It’s a completely standard process where the money from your buyer is used to clear your outstanding mortgage balance on completion day. Whatever’s left over is your profit. Simple as that.
First Steps to Selling Your House with a Mortgage
While selling a mortgaged property is perfectly normal, a little prep work goes a long way. Getting a clear handle on your financial position from the get-go saves a lot of headaches later on and lets you make smarter decisions, whether you're climbing the property ladder or just selling up.
Your very first port of call? Your mortgage lender.
Understand Your Redemption Figure
Before you even think about an asking price or what you might make from the sale, you need to know exactly how much you owe. This is where your redemption figure comes in.
It’s not just the balance you see on your banking app. A redemption figure is a formal statement from your lender that details the total amount needed to pay off your mortgage on a specific date.
It usually includes:
- The outstanding capital you owe.
- Any interest that’s built up.
- Potential Early Repayment Charges (ERCs), if they apply to you.
- A small admin fee from the lender, sometimes called a deeds release or exit fee.
Getting this statement is easy. You can normally request it through your online banking, over the phone, or by sending your lender a secure message. It’s the essential first step that forms the foundation of all your financial planning for the sale.
Check for Early Repayment Charges (ERCs)
An Early Repayment Charge, or ERC, is a fee that some lenders charge if you pay off your mortgage while you're still in a fixed-rate or introductory deal. These charges are a real sting in the tail, typically calculated as a percentage of your outstanding loan – often between 1% and 5%.
To put that in perspective, a 3% ERC on a £150,000 mortgage would land you with a £4,500 bill.
Before you do anything else, dig out your original mortgage offer or your latest annual statement to see if ERCs apply. If your fixed-term deal has already ended and you’re on the lender’s Standard Variable Rate (SVR), you’re probably in the clear. Knowing this number is critical for budgeting accurately.
Calculating Your Estimated Equity
Once you have your redemption figure, you can get a proper look at your home equity. Equity is the slice of your property that you actually own – basically, its market value minus any loans secured against it. A quick bit of maths will give you a solid estimate.
Start with your property’s estimated sale price. Take away your redemption figure (making sure to include any potential ERCs). Then, subtract other selling costs like legal fees. The number left over is your estimated net profit.
Let's run through an example:
- Estimated Sale Price: £300,000
- Redemption Figure (including ERCs): – £180,000
- Estimated Conveyancing & Other Fees: – £2,000
- Estimated Equity/Profit: £118,000
This simple calculation shows you what you’ll actually walk away with. It’s especially helpful if you're thinking about a quick sale. For anyone exploring that route, our guide on what a cash buyer will pay for your house offers some great insights into getting a fast, fee-free transaction.
By doing this maths upfront, you can list your property on a free platform like NoAgent.Properties with total confidence, knowing exactly where you stand.
To help you get your head around the terminology, here’s a quick reference table.
Key Terms for Selling a Mortgaged Property
| Term | What It Means for You | Action Required |
|---|---|---|
| Redemption Figure | The total amount needed to pay off your mortgage, including fees and interest. | Contact your lender to request a formal redemption statement. |
| Early Repayment Charge (ERC) | A penalty fee for paying off your mortgage during a fixed-term deal. | Check your mortgage offer or annual statement to see if this applies. |
| Equity | The portion of your property's value that you own outright. | Calculate this by subtracting your mortgage balance from the property's estimated sale price. |
| Deeds Release Fee | A small administrative charge from your lender for closing the mortgage account. | This will be included in your redemption figure. No separate action needed. |
| Porting | The process of transferring your current mortgage deal to a new property. | Speak to your lender to see if your mortgage is portable and if it's the right option for you. |
Getting familiar with these terms demystifies the process and puts you firmly in control of your sale.
Porting vs Repaying Your Mortgage: What Is Right for You?
Once you have your redemption figure in hand, you’ve reached a fork in the road. Do you use the sale of your home to wipe the slate clean and pay off your mortgage, or do you take your current deal with you to your next property? This decision, between repaying and porting, can have a huge impact on your finances.
The most common path is simple repayment. When the sale completes, your conveyancer channels the funds from your buyer directly to your mortgage lender, paying off the loan in full. Whatever’s left over—your equity—lands in your bank account. It’s a clean break, severing your financial ties to that property for good.
But there’s another option, and in the right circumstances, it can be a financial masterstroke: porting your mortgage.
The Case for Porting Your Mortgage
Porting simply means you transfer your existing mortgage—same interest rate, same terms—from your old home to your new one. If you were lucky enough to lock in a great interest rate a few years back, this move could save you a serious amount of cash.
Imagine you’re on a fixed rate of 2.1% with three years left to run. Today, new mortgage rates might be hovering closer to 5%. By porting, you hang onto that fantastic low rate, protecting yourself from much higher monthly payments on your next home. That’s the real magic of porting.
Key takeaway: Porting is a lifesaver for homeowners on a brilliant fixed-rate deal. It helps you dodge both Early Repayment Charges and the sting of today's higher interest rates, letting you move house without ditching a great mortgage.
Hurdles and Considerations for Porting
While porting sounds like a no-brainer, it’s not always guaranteed. Think of it as a privilege, not a right. You’ll essentially have to reapply for your own mortgage.
Your lender will run a fresh affordability assessment based on your current income and their latest, often stricter, lending criteria. If you’re buying a more expensive place and need to borrow more, you’ll have to apply for a top-up loan. This extra borrowing will almost certainly be at the lender’s current (and higher) interest rate, leaving you with two separate parts to your mortgage, each with different rates and end dates.
This flowchart can help you visualise that initial decision-making process.
As you can see, the first thing to figure out is your mortgage type. If you’re on a fixed-rate deal, you need to be on high alert for those potentially painful Early Repayment Charges.
When Repaying Is the Simpler Choice
For many sellers, repaying the mortgage is just the most straightforward and logical route. This is particularly true if:
- Your fixed-rate deal is ending soon anyway, meaning no ERCs to worry about.
- You aren’t buying another property right away (maybe you’re renting for a bit or moving abroad).
- You’ve scouted around and found a much better mortgage deal for your new home.
- Your financial situation has changed, and you’re worried you might not pass the lender’s new affordability checks.
Ultimately, deciding whether to port or repay comes down to your personal finances, your future plans, and the fine print on your current mortgage. If you’re navigating a more complex situation like shared ownership, it can be really useful to see how others have handled their sale. Taking a look at listings like this 2-bed shared ownership flat on NoAgent.Properties can give you a real-world perspective.
Whatever you’re leaning towards, having a chat with a mortgage advisor is always the best next step before you commit.
Selling a Mortgaged House Without an Agent
Right, you've sorted out the numbers with your lender. Now for the fun part: getting your property market-ready and in front of keen buyers.
Forget the old-school estate agent route for a moment. Selling your home yourself means you present it your way, on your terms. And best of all, you get to keep the thousands you would have paid in commission fees.
First things first, you need to make buyers fall in love with the place. That starts with a serious declutter. A buyer needs to see themselves living there, not be distracted by your holiday snaps or collection of mugs. A good clear-out makes every room feel bigger and brighter. If you're struggling to get started, a structured guide on how to declutter your home can be a lifesaver.
Once the clutter is gone, tackle any small, nagging repairs and consider a fresh coat of neutral paint. These little jobs make a world of difference to how a property is perceived and can seriously boost its value in a buyer's eyes.
Creating a Listing That Actually Sells
Your online property listing is your shop window. It needs to be sharp, honest, and compelling enough to make someone pick up the phone. It’s a mix of great photos and a description that sells a lifestyle, not just bricks and a roof.
Your Photos Are Everything
Before you type a single word, get the photography right. Dark, blurry, or messy pictures are an instant turn-off. You don’t need to be David Bailey, but you do need to follow a few simple rules:
- Let the light in: Open every blind and curtain. Always shoot during the day.
- Tidy up (again): Make sure each room is spotless before you point the camera at it.
- Find the best angles: Stand in the corner of a room to capture its full size and make it feel more spacious.
- Show off the good bits: Got a lovely garden, a modern kitchen, or a period fireplace? Make them the star of the show.
Writing a Description That Hooks People In
Your description should tell a story. Kick off with a punchy summary that flags the top three things about your home. Then, walk the reader through each room, giving them a real feel for the space – and don't forget to include dimensions.
But don’t just list features; sell the benefits. Instead of "south-facing garden," try "a sun-drenched garden, perfect for summer barbecues." Mention the local perks like good schools, handy transport links, or a great park down the road. This helps buyers picture their life there. For a bit of inspiration, have a look at how other sellers do it. This listing for a 2-bedroom flat with 2 bathrooms does a great job of painting a picture of both the property and the area.
List Your Property for Free on NoAgent.Properties
With your photos and description sorted, you're ready to get your property online and dodge those agent fees completely. Platforms like NoAgent.Properties are designed for people like you, putting you firmly in the driver's seat of your own sale.
Selling privately means you talk directly to potential buyers, arrange viewings when it suits you, and handle offers without a go-between. It’s not just about saving money; it’s faster and more transparent.
The platform is dead simple to use, so you can have a professional-looking advert live in just a few minutes.
A clean, modern listing like this one grabs attention immediately, blending top-notch images with all the key info. Using a platform built for private sellers gives you the same marketing tools an agent would use to reach a huge audience of motivated buyers.
Once you hit 'publish', you're in control. You can respond to enquiries instantly and build a proper rapport with viewers. That personal connection is priceless when you sell a mortgaged house and need the whole thing to go off without a hitch. Taking charge isn't just a smart financial move; it's incredibly empowering.
Navigating the Conveyancing Process with a Mortgage
Once you've accepted an offer, the whole process gets serious and moves into the legal stage known as conveyancing. When you're selling a house with a mortgage, this part of the journey has a few extra, absolutely critical steps. Your conveyancer isn't just handing over ownership—they're the one responsible for making sure your mortgage is fully paid off on completion day.
This part can feel a bit like it’s all happening behind the scenes, but it’s actually a very structured and well-trodden path. Your legal representative is now in the driver's seat, coordinating with your lender and the buyer’s solicitor to make everything official and final.
Your Conveyancer's Role with the Lender
One of the very first things your conveyancer will do is formally request the final redemption statement from your mortgage lender. You might have already got an estimated figure for your own planning, but this is the official request that kicks things off legally.
The statement they receive will be valid up to a specific date, usually the proposed completion day. It nails down the exact amount needed to clear your mortgage, including any daily interest that adds up right to the very end. This final figure is then slotted into the financial breakdown of the sale, which is called the completion statement.
The Key Stages of Conveyancing
From the moment your offer is accepted to the day you hand over the keys, the conveyancing journey follows a clear sequence. Even though your conveyancer is handling the heavy lifting, it’s good to know the main milestones you’ll pass.
- Drafting the Contract Pack: Your solicitor gets to work preparing the initial legal documents. This includes the draft contract, property information forms (TA6 and TA10), and the title deeds.
- Responding to Enquiries: The buyer's solicitor will comb through everything and inevitably come back with questions. These can be about anything from boundary lines to past disputes with neighbours.
- Exchange of Contracts: This is the big one—the point of no return. Once both you and the buyer have signed identical contracts and the solicitors have formally exchanged them, the sale is legally binding. If you try to pull out after this, you'll face some serious financial penalties.
During this time, other checks are being done. For instance, a buyer might ask for property certifications, which could involve understanding UK electrical safety certificates (EICR). Having things like this ready can really help keep the momentum going.
Crucial Insight: The gap between exchange and completion is usually pretty short, often just a week or two. This is when all the final frantic preparations happen, from booking removal vans to calling utility companies. Behind the scenes, your solicitor is making sure all the funds are lined up and ready to go for the big day.
What Happens on Completion Day
Completion day is when the financial magic happens. On this day, the buyer’s solicitor sends the full purchase price over to your solicitor’s account. It’s a flurry of activity, all timed to happen smoothly.
Once your solicitor receives the funds, their first job is to pay off your outstanding mortgage. They’ll wire the exact redemption amount straight to your lender, wiping out your loan in an instant. Whatever is left over—your hard-earned equity—is then transferred directly to your bank account.
The whole process is incredibly secure and efficient. Your conveyancer acts as the trusted middleman, ensuring the lender gets paid, the mortgage charge is removed from the property title, and you receive your net proceeds without any fuss. This is where selling privately on a platform like NoAgent.Properties really pays off. You save thousands in agent fees, which maximises the final amount of equity that actually lands in your bank. The clarity you get from direct listings, like this stunning 2-bedroom flat in Knightsbridge, also tends to attract serious buyers, which helps make the entire conveyancing experience that much smoother.
Managing Your Sale: Timelines, Costs, and Pitfalls
Let's be realistic: selling a house takes time, and there are always costs involved. When you have a mortgage in the mix, mapping out the journey from listing to completion is the best way to stay in control and avoid any nasty surprises.
A typical private sale in the UK can take anywhere from three to six months, but it’s always wise to plan for potential delays.
The current market has thrown a few hurdles our way. Selling a mortgaged house has become more challenging with rising house prices and stricter mortgage approvals. The average UK house price has hit £270,000, but for many homeowners, the growth in their equity just hasn't kept up with borrowing costs.
Worse still, residential property transactions dropped to 98,000 in October 2025—a 2.1% dip from the previous year, showing that fewer sales are happening overall. For sellers with a mortgage, this points to a tougher market where deals might take longer to get over the line. You can explore the full details of the UK house price index on GOV.UK to see the data for yourself.
Budgeting Beyond the Mortgage
Your mortgage redemption figure is obviously the biggest number you’ll be dealing with, but it’s far from the only cost. To figure out your true net profit, you need to account for all the other expenses that pop up along the way.
By selling privately on a platform like NoAgent.Properties, you automatically ditch the single largest expense: estate agent commission. This fee is usually around 1.5% + VAT of the final sale price. On a £270,000 property, that’s a saving of over £4,800. A huge win.
However, you'll still need to budget for:
- Conveyancing Fees: You’ll need a solicitor or licensed conveyancer to handle all the legal paperwork. Set aside between £850 and £1,500 for their services.
- Energy Performance Certificate (EPC): It's a legal must-have before you can even market your property. This usually costs between £60 and £120.
- Removal Services: The cost of moving can vary wildly depending on how much stuff you have and how far you're going, but don't underestimate it.
- Indemnity Insurance: Sometimes, if there are minor issues with planning permission or building regs for past work, your solicitor might suggest an indemnity policy to protect the buyer. It's usually a small one-off cost paid by you.
Common Pitfalls and How to Handle Them
Even the most organised sale can hit a bump in the road. Knowing what to look out for puts you in a much stronger position to deal with problems if and when they arise.
A major worry for some sellers is negative equity. This is where your outstanding mortgage is actually higher than your property’s market value. If you're in this boat, you won’t be able to sell without your lender’s explicit permission, and you'll need to find a way to make up the shortfall to clear the mortgage debt on completion.
Another classic headache is delays in the property chain. A problem with a buyer somewhere down the line can grind everything to a halt for everyone.
Pro Tip: When selling without an agent, clear and direct communication with your buyer is your secret weapon against chain-related stress. Regular updates build trust and help you solve problems together, instead of relying on a third party to pass messages back and forth.
Finally, lender delays can be a real source of frustration. Mortgage applications take time, and administrative hold-ups are pretty common. To minimise this risk, encourage your buyer to get their mortgage 'agreed in principle' before you accept their offer.
Selling to an investor or a chain-free buyer can also seriously speed things up, like in this example of a house listed for a quick sale to an investor. By anticipating these challenges, you’ll be ready to handle them calmly and effectively.
Common Questions About Selling a House with a Mortgage
Even with a solid plan, a few lingering questions are completely normal when you decide to sell a mortgaged house. This final section tackles the most common queries we see from UK homeowners, giving you clear, straightforward answers to help you move forward with confidence.
Can I Sell My House If I Have Only Just Remortgaged?
Yes, you absolutely can. But—and it's a big but—you've just walked into prime territory for Early Repayment Charges (ERCs).
Most new mortgage deals, especially the fixed-rate ones, have an ERC period that can last anywhere from two to five years. Selling during this window will almost certainly trigger a penalty, which is usually a percentage of your outstanding loan.
Before you even think about listing, dig out your mortgage offer documents and find the exact ERC you'd be facing. Sometimes, porting your new mortgage to your next property is a financially savvy move that lets you sidestep this charge altogether.
What Happens If My Sale Price Is Less Than My Mortgage?
This is what’s known as negative equity, and it definitely makes the selling process more complex. If the money you get from the sale isn't enough to cover your entire mortgage redemption figure, you are still legally on the hook for the rest.
It means you'll have to find the cash to cover the shortfall yourself on completion day. You absolutely must speak to your lender before you even market the property; they have to consent to the sale, as their financial security is at risk. Selling in this scenario demands careful financial planning and an open dialogue with your lender from day one.
Heads Up: A lender will not release their legal charge over the property until the mortgage debt is settled in full. Without this, the sale cannot legally complete, so dealing with a shortfall isn't optional.
How Quickly Can I Sell a House with a Mortgage?
The mortgage itself doesn't usually slow things down. The timeline for selling a mortgaged house is pretty much the same as any other property, typically taking between 3 to 6 months from listing to completion here in the UK.
The real factors that dictate the speed of your sale are the usual suspects:
- Finding a buyer: A well-presented property, priced realistically, will always get snapped up faster.
- The property chain: The fewer people involved, the quicker things move. A chain-free buyer is the dream.
- Conveyancing efficiency: Delays often crop up during the legal phase because of slow responses or complex enquiries.
Selling privately through a platform like NoAgent.Properties can give you a bit of an edge on speed. By dealing directly with buyers, you cut out the middleman, which often leads to quicker communication and a smoother transaction.
Do I Need to Inform My Lender Before I Sell?
While you don't need formal permission to pop your house on the market (unless you're in negative equity), it's a very good idea to get in touch with them early. Your first move should be to request an estimated redemption figure so you can do your sums and know where you stand.
Your conveyancer will handle all the formal communication and request the final, official redemption statement once an offer is accepted. However, giving your lender a heads-up, especially if you're thinking about porting your mortgage, ensures you know all your options well in advance. It’s all part of the prep work that makes the whole journey far less stressful. This proactive approach puts you firmly in control.
Here are a few quick answers to some other common questions that pop up.
| Question | Answer |
|---|---|
| Do I have to pay my mortgage while the house is for sale? | Yes, you must continue making your regular monthly mortgage payments until the day of completion. The final payment will be handled by your conveyancer from the sale proceeds. |
| Can I transfer my mortgage to someone else? | Generally, no. Mortgages are based on an individual's financial circumstances. A buyer must secure their own mortgage. The only common exception is a 'Transfer of Equity', often used in divorces. |
| What happens to my mortgage overpayments? | Overpayments you've made will have reduced your outstanding capital balance. This means your final redemption figure will be lower, and you'll get more equity back from the sale. |
| Will my credit score be affected by selling my house? | No, simply selling a house and repaying the mortgage will not negatively impact your credit score. In fact, successfully managing and clearing a large debt like a mortgage is viewed positively. |
Selling a home with a mortgage is the norm in the UK, so don't let it intimidate you. With a bit of preparation and the right information, you can navigate the process smoothly and successfully.
Ready to take the next step and sell your property without the fees? At NoAgent.Properties, you can list your home for free, connect directly with buyers, and keep every penny of your equity. Start your journey today at https://www.noagent.properties.
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