Can I Sell My House With Mortgage Arrears in the UK?

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Posted in Mar 18 , 2025

Can i sell my house with mortgage arrears

If homeowners fall behind on mortgage payments, the situation becomes stressful, and most start to wonder: Can I sell my house with mortgage arrears in the UK? The good news is that you can sell the property while it is in the mortgage. However, it requires complete understanding and well-planned implications for legal and financial matters. This blog explores your options as a homeowner in the selling process and how to avoid repossession while securing a positive outcome.

Let’s understand mortgage areas

Mortgage arrears happen when you have missed one or multiple payments, and your lenders start to question your behind payments. If the arrears continue to add up, the lender has all the right to take legal action and start the proceedings to repossess the property. Selling your home before the repossession will help you clear the debts, prevent issues in your credit score, and even get you some equity if your property value exceeds the outstanding mortgage amount.

So can you sell the house?

Yes! Even if you have mortgage arrears, you must inform the lender about your plans because they have a legal interest in that property. Often, lenders go with voluntary sales instead of repossession as this method is less expensive and time-consuming.

If you can sell the house for more than its actual value, you can quickly get the mortgage cleared along with any arrears. However, if the sale price cannot cover the mortgage amount, you will have to negotiate the shortfall with the lender or look for other options.

What are the steps to sell my house with mortgage arrears?

1. Contact your lender

Once you realise you are behind in repayments, contact your lender immediately. They often allow temporary solutions, such as mortgage holidays or even restructuring the payments. Informing them about your intention to sell can also help in any negotiations about giving a timeframe for the completion of the sale before starting any legal action.

2. Assess the value of the property

Before listing the home, get a property valuation to understand the right amount you can sell it for. Hire an expert estate agent like Cribs Estates, who has professionals to guide you about the market condition and can check any similar property in the area to give you an idea of real-time expectations.

3. Calculate the mortgage debt and additional costs

Confirm your mortgage balance, including arrears, repayment charges, and other pending fees, if applicable. You must also consider fees for estate agents, solicitors, and any other selling costs attached.

4. Proceed to list the property

Once you have a clear picture of the financial situation, it is time to proceed with the listing. Hire an estate agent with a solid reputation, like Cribs Estates, who are known for securing the best deals for your home. They can even ensure the property is sold urgently through their connected links.

5. Negotiate the offer before accepting

After listing, you would start to get offers; only consider the ones that will ensure you settle the mortgage and arrears. Cribs Estates can help you get the best price and a fast completion date to prevent financial loss.

6. Settle your mortgage through proceeds

As soon as the sale is complete, any mortgage balance and arrears are deducted from the sale proceeds. If there is the remaining amount, it will be transferred back to you. In case of any shortfall, the payment will be discussed again with the lender.

Can I sell my house with mortgage arrears in another way?

If you don’t prefer to sell the home in the first place, there are many other options you can explore:

1. Most lenders agree to get the repayment plans discussed, revise them, and clear up the arrears with time.

2. Many government schemes assist homeowners who cannot pay on time.

3. If your property has a good amount of equity, you can easily remortgage or even remove the equity release plan and pay off the remaining arrears.

4. Often, you can convert your property into a rental income and generate enough to cover the mortgage payments.

How Can Cribs Estates Help?

Understanding mortgage arrears and selling your house can quickly become overwhelming, especially if you are already in a financial crisis. Cribs Estates is a specialised estate agent company that helps homeowners overcome difficult times and offers the best solutions. Our experts are ready to guide you and ensure you receive the best price without delays. We offer the following services:

Ensuring you price your home competitively to attract buyers quickly.
Helping you find buyers quickly to prevent repossession proceedings.
Ensuring you get the best possible offer to cover your mortgage arrears.
Assisting with lender negotiations and handling all necessary paperwork to make the process as smooth as possible.

So, if you are wondering, can I sell my house with mortgage arrears? Cribs Estates has the answer with the right strategy and support. They can assist you in all the challenges of handling the proceedings confidently and focusing on securing a promising financial future.

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