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Can I sell my house if I still have a mortgage?
You can sell your house if the mortgage isn't paid off, but you'll need to pay the mortgage in full when you sell the house.
Many homeowners look into selling their house before their mortgage paid in full. If this is something that you’ve been considering, We Buy Any House have gathered some helpful information, so you know everything you need to before making a decision.
Although there are many factors to consider, the short answer is yes. You will need to use the proceeds from the sale to pay off the remaining mortgage before you buy a new house, but you can sell a house with a mortgage.
What’s the best way to sell a house with a mortgage?
The first thing you want to do is find out how much you owe on your mortgage. It would be best if you then had your house valued to confirm that the sale of your house will give you enough to pay the mortgage off and then buy another.
If the amount left on your mortgage isn’t very high, providing your property value hasn’t dropped too much you should be fine.
If you haven’t lived in the property very long, or your house value has dropped dramatically, it may be more difficult. At this point, you will need to consider why you’re moving. If you’re downsizing to a cheaper property, it may not be as big an issue. If you’re looking for a bigger house, you may find it a struggle.
What about fixed-rate mortgages?
With a fixed-rate mortgage, your interest rate will be fixed for an agreed amount of time; usually 2-5 years. These kinds of mortgages are designed to protect homeowners from base rate increased set by the Bank of England. They are helpful as they will prevent you suffering from any increases, but can also mean that you lose out if there are any decreases in the base rate.
Fixed-rate mortgages are portable, so if you want to, you can transfer it to the new property that you’re looking to buy. These mortgages mean that you don’t have to worry about paying the mortgage off in full as it will move with you. There is usually a charge, which can vary from 3-5%, depending on your lender.
Selling with a reverse mortgage
If you have a reverse mortgage, you can sell the house whenever you want to. There aren’t any extra fees; you’ll need to pay the remaining instalments that you’ve agreed with your lender.
Can I sell the house to clear my debts?
Selling your house can be a better alternative to handing your keys over if you’re facing repossession. Selling the house yourself gives you a better chance, as you can use the proceeds to pay off your debt and potentially get yourself back on your feet with whatever is left.
The first thing that you should do is find out your outstanding mortgage balance. This will let you know if you’re in a position to sell the house or not and can save you time and money if you find that you’re not able to pay the mortgage off in full when you sell.
You should also find out if there are any early repayment fees that you need to factor in. Depending on your lender, these can range from 2-5%, and so could be a big payment that you need to include in your calculations.
If you’re in negative equity, you will also need to consider all of your options. You can’t pay your mortgage off if your house value is less than the total you own unless you can afford to pay the difference out of pocket. If you are, you can still go ahead with the sale, but you may want to consider the implications that it may have further down the line if you run into other issues if you’ve spent your savings.
When you inherited you may have been wondering, how long does probate take? We’ve outlined the process so you can know everything you need to about the process, easing your mind in a stressful time.
Selling a house fast is very hard on the open market, which is why we are here to help. We can buy your house in as little as seven days and have the funds in your account in as little as five. This allows you to pay your remaining mortgage off straight away and be free to buy elsewhere, especially if you’ve found your dream house and don’t want to risk missing out on it.
Overall, if you’re trying to sell your house with a mortgage, you can do so. You will need to take into account all of the implications and make sure that you’ll be in a strong position afterwards.
If you’re currently trying to sell your house, get in contact with us at We Buy Any House. We can provide you with a free offer on your house, and work out a time frame of selling the property that works for you.
We buy any home in as little as 7 days, or timescales to suit you. Head to our website for more information.