Can I sell my house with a mortgage?
Still paying your mortgage but ready to move? In 2025, selling your house before paying off your mortgage is simple. Learn how to repay, port, or sell fast plus expert tips from We Buy Any House.
Yes, you can absolutely sell your house even if you’re still paying a mortgage. In fact, it’s one of the most common situations for UK homeowners in 2025. When you sell your property, your mortgage doesn’t disappear, but it will be paid off directly from the sale proceeds. Once the mortgage is cleared, any remaining funds are yours to use however you like, whether that’s for a deposit on your next home, paying off debts, or investing elsewhere.
According to recent figures, over 63% of households in England own their home, and nearly half of those owners are still making monthly mortgage payments. Many of them are moving due to life changes such as relocation, growing families, or financial adjustments. Selling with a mortgage has become standard practice, and with proper guidance, it can be a smooth, straightforward process.
Understanding how selling with a mortgage works
When you sell your house, your solicitor will handle the process of repaying your existing mortgage from the sale proceeds. The remaining balance after your mortgage and any fees are paid is what you’ll receive as profit.
For example:
- You sell your house for £300,000
- Your remaining mortgage balance is £180,000
- You have £5,000 in legal and estate agent fees
After these deductions, you’d be left with around £115,000 in equity, which becomes your profit from the sale.
This equity can then go towards your next deposit, moving costs or savings.
If you’re ready to move but still have a mortgage, your next step is to decide how you’ll handle your current loan. You’ll typically have two main options.
Option 1: Paying off your mortgage when you sell your house
This is the most common route. Once you sell your property, your solicitor contacts your lender, obtains a final settlement figure (the redemption amount) and pays the balance directly from the sale proceeds.
This process is handled automatically through the sale’s completion stage. You don’t need to transfer the funds manually, your conveyancer ensures everything is settled correctly.
Once your mortgage is cleared, you’re free to:
- Apply for a new mortgage on your next property
- Use your remaining funds for another purpose
- Become mortgage-free if your equity converts the loan
This route suits sellers who want a clean slate, especially if they’re changing lenders or looking for a different mortgage type.
Option 2: Porting your mortgage to your new home
If you’re happy with your current mortgage deal, particularly if you have a low interest rate, you may be able to port your mortgage.
Porting means transferring your existing mortgage (and its terms) to a new property. You’re still technically taking out a new mortgage, but it keeps the same rate and conditions from your current deal.
Advantages of porting
- You retain your existing interest rate, which can save thousands over time.
- You avoid early repayment charges (ERCs).
- The process is usually quicker than applying for a completely new mortgage.
What to consider
Porting isn’t guaranteed. You’ll still need to go through affordability and credit checks, and the new property must meet your lender’s criteria. For example, if you’re buying a non-standard construction property or a buy-to-let, your lender may refuse.
If your new home costs more than your current one, you’ll likely need to ‘top up’ the mortgage. The additional borrowing will usually be at a new rate, meaning you could have two sub-loans with different interest rates under the same lender.
Are there terms that stop me from selling my house before the mortgage is paid off?
In most cases, no. You’re free to sell your home at any time, but your mortgage agreement may include conditions you need to be aware of, particularly around early repayment.
Early Repayment Charges (EPCs)
An ERC is a fee your lender charges if you pay off your mortgage early. It usually applies if you’re on a fixed mortgage or during a discounted period.
Typical ERCs range between 1% and 5% of your outstanding balance. For instance, if you owe £200,000 and your ERC is 3%, you’d need to pay £6,000 to exit early.
Before deciding to sell, always:
- Check your mortgage offer document for ERC details.
- Contact your lender for an up-to-date redemption statement.
- Factor in other potential selling costs, such as conveyancing, estate agent fees, and removals.
If the ERC is high, it may make more sense to delay your sale until the penalty period ends to explore porting as a workaround.
What is my property’s negative equity?
Negative equity occurs when your mortgage balance exceeds your home’s market value. It’s more common when house prices fall or when homeowners have borrowed additional funds through secured loans.
If your home is valued at £180,000, but you still owe £200,000, you’re £20,000 in negative equity.
Selling in this situation can be challenging, but it’s not impossible. You’ll need to cover the shortfall between your sale price and the mortgage owed, usually from savings or a personal loan.
If you can’t afford to pay the difference up front, speak with your lender. In rare cases, they may allow you to transfer the debt to your next mortgage, but this depends on affordability checks and your credit profile.
Negative equity can be stressful, but remember that property values can fluctuate. If you’re not under urgent pressure to sell, waiting for the market to recover might allow your home’s value to rise again, restoring positive equity.
Should I wait until I am mortgage-free to sell?
Being mortgage-free is a great feeling, but it’s not a requirement to sell your house. Most homeowners sell before their mortgage ends, especially if life circumstances require it, such as divorce, relocation, or financial changes.
However, there are times when waiting makes financial sense. If you’re only a few months away from your fixed rate ending or a costly early repayment period, holding off could save you thousands in fees.
If you want to access your equity without selling, consider:
- Remortgaging to release funds for home improvements
- Secured loans for specific financial needs
- Equity release (for homeowners aged 55+) if you need cash without moving.
Each option has pros and cons, so professional mortgage advice is recommended before making major financial decisions.
Applying for another mortgage while you still have one
It’s entirely possible to apply for a new mortgage while you’re still paying your current one. This situation often arises when homeowners buy a new property before selling their existing one, known as a linked sale and purchase.
Your lender will take your current mortgage into account during affordability checks, but they’ll also consider that it will be paid off soon. If your finances are strong and your income supports both payments temporarily, this process is straightforward.
However, if your sale is delayed or falls through, you could be responsible for two mortgage payments at once, so ensure you have financial backup or bridging options in place.
What happens if I can’t sell my house but need to move?
Sometimes homeowners need to relocate quickly, for a new job, divorce or financial reasons, but their property hasn’t sold. If you’re in this position, you still have options.
Rent out your current home (with lender permission)
This can help cover your existing mortgage while you move. You’ll need “consent to let” from your lender or a buy-to-let remortgage.
Use a quick house buyer like We Buy Any House
We buy properties directly for cash, allowing you to sell your home quickly, regardless of mortgage status or property condition.
Part exchange (if buying a new build)
Some developers allow you to trade your current property as part payment for a new home, though offers may be slightly below market value.
Each option has trade-offs, but for speed and certainty, a cash buyer sale is often the simplest.
The benefits of selling to a cash house buyer when you still have a mortgage
Selling through a traditional estate agent can often take 3 – 6 months, sometimes longer if you’re caught in a property chain or waiting for a buyer’s mortgage approval. When you still have an active mortgage, that delay can quickly become stressful.
Every extra month means more interest payments, more uncertainty, and more time spent juggling your existing mortgage while planning your move.
That’s why more homeowners in 2025 are turning to cash property buyers like We Buy Any House for a faster, more straightforward way to sell. Whether you’re downsizing, relocating or facing financial pressure, selling directly to a trusted cash buyer removes the most significant barrier to completing your sale and ensures your mortgage is repaid without delay.
Why choose a cash buyer like We Buy Any House?
Fast completion: You can sell your house in as little as 7 days, without waiting for a buyer’s mortgage offer or chain to progress. Once you accept an offer, the process moves immediately to legal completion.
Guaranteed sale: There’s no risk of buyers pulling out at the last minute, a common frustration in traditional selling.
No estate agent fees or viewings: You avoid open houses, lengthy negotiations and commission costs. Everything is handled directly and discreetly.
Certainty and speed: Your mortgage is repaid quickly, allowing you to move on without ongoing financial pressure or missed opportunities.
Working with We Buy Any House gives you guaranteed, stress-free options to sell your house fast, even with a mortgage. You’ll enjoy speed, certainty, and professional support at every stage, helping you clear your mortgage and start your next chapter with confidence.
Example: Selling with an outstanding mortgage in 2025
Let’s look at an example to bring this to life:
- Your home is valued at £250,000
- You still owe £150,000 on your mortgage
- You accept a cash offer of £245,000
- After legal fees of around £3,000, you’re left with £92,000 in equity.
Your solicitor sends £150,000 directly to your lender to settle the mortgage. The remaining £92,000 is transferred to your bank account, giving you the funds to move, reinvest or save.
If you’re selling through a cash house buyer, this entire process can be completed within two weeks, meaning you can repay your mortgage and move on almost immediately.
Practical tips when selling your house with a mortgage
Check the redemption figure early
Contact your lender before listing to understand how much you owe and whether ERCs apply.
Review your credit score
If you plan to buy again, a strong credit record helps secure better rates.
Budget for all costs
Include estate agent, legal, removal and mortgage fees.
Plan your timing
Align your sale with your next purchase or rental move to avoid gaps or double payments.
Get professional advice
A mortgage broker or financial adviser can help you choose between porting, repaying or remortgaging.
Consider a fast-sale option
If time is your priority, We Buy Any House can help you sell your house fast, even if you still owe on your mortgage.
Selling your house with a mortgage is easier than ever in 2025
Having an outstanding mortgage doesn’t stop you from moving forward. In today’s flexible housing market, selling with a mortgage is routine, with thousands of UK homeowners doing so every year.
The key is understanding your lender’s terms, planning for costs, and exploring your options, whether that’s porting, paying off early, or choosing a quick cash sale.