Selling House Before Mortgage Comes To An End

Selling your house or flat before your mortgage comes to an end is not impossible, but it can come with some additional considerations compared to selling other properties.

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Your main questions when selling a property before your mortgage ends

✅ Am I allowed to sell my home even if the mortgage is not paid off?

Yes, there are no legal restrictions that prevent you from being able to seek a buyer for your property before the mortgage has been paid off. However, you will have to calculate whether this is the right move based on whether the proceeds from selling the home will be enough to pay off the mortgage, which might not be possible if your property’s value has decreased.

✅ Will there be any fees to pay when selling my home before the loan ends?

Possibly, but you’ll have to check your mortgage agreement to find out what kind of penalties you might have to pay. Your lender will expect that you’ll use the proceeds from the sale of the loan to clear your debt to them, which means they’ll lose out on interest from future mortgage repayments. Many lenders will charge penalty fees in this situation.

✅ Am I required to use my home sale proceeds toward paying my existing mortgage?

Yes. Your conveyancer or other legal professional overseeing the sale of your home will be responsible for collecting the proceeds from the buyer, and they will first use these funds to hopefully pay off your mortgage as well as any fees that you’ll own the lender. Only after these debts are cleared will you receive whatever proceeds might be remaining from the sale.

✅ Is it possible to port my existing mortgage to my next property?

Yes, with some conditions and restrictions. Porting a mortgage involves transferring the existing loan and its terms to your next property, although you’ll effectively still pay off your current mortgage on your existing home and then you’ll take out a new home loan from the same lender with the same mortgage terms except the loan will be secured against your new property.

✅ What is the average time taken to sell a home with an existing mortgage?

It depends on what method you use for selling your property. Using an estate agent can take many months or even more than a complete year. When you sell by auction you’ll have to wait at least a couple of months for all of the steps to be completed. But using a fast buyer like LDN Properties can usually see you complete the sale of your home within a handful of short weeks.

✅ Will I have to pay commission for selling my home before the mortgage ends?

This also depends on the method that you use for selling your property, because auctioneers and estate agents will charge you commission for finding a buyer for the house or flat, and this will lower your sale profit. However, you won’t have to pay any fees if you use a reputable quick property buyer.

✅ How can I tell whether a quick property buyer is a legitimate business?

Ask whether they are registered with an organisation known as The Property Ombudsman (TPO), which issues rules to protect homeowners against scams in the fast buying industry. All TPO members must adhere to those policies. If a company outright refuses to join to TPO or cannot prove it is an official member, you should be wary about selling your home to them.

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