Selling a house with mortgage arrears

Financial problems can happen to any homeowner, including home sellers who might fall behind on their monthly mortgage payments.

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Your questions answered when selling property with mortgage arrears

✅ Am I guaranteed to lose my home if I have mortgage arrears?

No. Every home loan is unique and you might be able to avoid repossession of your property even if you have significant arrears. Talk to your lender about possible repayment options, because there might be a way to devise a plan for you to remain in the house or flat.

✅ Do I have to pay off my mortgage arrears before selling my property?

No, there are no legal prohibitions that block a sale whilst there are arrears on a property. You can list your home for sale with the plan to use part of the cash profit to pay off your arrears, and hopefully there will be enough money left over to help toward buying your next home. You should discuss this further with your lender.

✅ Does every option for selling my home with mortgage arrears charge commission?

No. If you try to sell your house or flat through a property auctioneer or with the assistance of an estate agent, then you can expect to pay commission. But if you sell your home to a quick cash property buyer such as LDN Properties you won’t have to pay any fees.

✅ How long will it take me to sell my property if I have mortgage arrears?

It depends how you choose to sell your home. If you sell via an estate agent it might be a few months before you get an offer from a buyer. An auction can be quicker but there may be more than a month or two of waiting, whilst a fast cash buy can complete the sale often within a few weeks.

✅ If my mortgage lender starts repossession proceedings will they automatically succeed?

No, and the outcome of your case will depend on your specific circumstances. If a repossession proceeds all the way to a court hearing, a judge might side with whatever argument you make and reject the repossession attempt – or they may agree with the lender and order an eviction.

✅ What happens if the cash I make from selling my home doesn't cover my arrears?

If you sell your home in an attempt to raise cash to pay off your arrears but the total profit is less than the outstanding debt you owe the lender, this is known as a shortfall. You will be liable for paying off this amount eventually, but the timing will depend on your particular situation. This is something to discuss with your lender.

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