Sell Your House With a Mortgage in the UK: What to Expect
Jun 25, 2024
“Guide to selling a house with a mortgage in the UK”
Are you planning to sell a house with a mortgage and wondering whether it is possible? The answer is yes, selling a house with a mortgage is easy and the process is the same as for a regular house. The only thing to consider is to pay off the mortgage amount before closing the sale. It is also essential to communicate with your lender and know the mortgage agreement terms before selling a house with a mortgage in the UK. Go through this blog post to understand the selling process for a house with a mortgage.
What to Expect When Selling a House with a Mortgage in the UK?
As a seller, you have the option to pay off the entire mortgage amount from the sale price of the house or remortgage the property with another lender before selling it. You can also choose to port your existing mortgage to another house if buying a home immediately after selling the existing one.
Obtain A Payoff Letter from Your Lender
Before selling a house with a mortgage, obtaining a payoff letter or statement is essential to know the due amount and other obligations towards the lender. The statement will clarify how much of the sale price you should give the lender. The final amount can be obtained by requesting a final statement at the time of closing, as the interest rate causes the monthly mortgage amount to fluctuate. Your lender will also explain to you how to make the last payment on the loan. The payoff statement also includes information about the payment instructions, accumulated interest, and other fees, and the payment deadline, the payout statement also contains other costs.
Determine the Net Value of Your House
Estimating the net worth of your home is essential if you are not transferring or remortgaging the existing mortgage. The amount you owe to a lender will be deducted from the sale proceeds. This option seems ideal as long as you save a decent sum of money and the sale price completely pays off the mortgage. However, issues arise if your mortgage payments exceed the sale price. Evaluating a home's net worth is crucial if you want to be assured about this aspect. Estate Agent Power provides a free property valuation service to find the net worth of a property.
Set the Sale Price and Market Your House
To draw in genuine buyers and make sure you get the best deals to pay for the mortgage and other expenses, it's important to price your home correctly. Once you are confident about the price, proceed to market your house. You can consider listing your house on Estate Agent Power. The reliable real estate platform that enables a seller to post free advertisements to reach a diverse pool of buyers globally.
Pay Off the Mortgage Before Closing the Sale
You can initiate the closing process by signing a sales and purchase agreement after getting the best offer and accepting it. Pay off your mortgage and any outstanding fees or closing charges as soon as the sales finalise. At the closing, a lender's representative usually remains present to collect the outstanding balance.
To sum up, selling a house with a mortgage is possible and involves the same process as a regular house without any outstanding debt. Sellers have to pay off the mortgage amount to close the sale process. In the UK, sellers can also opt for remortgage or transferring the existing mortgage to another property to sell a house with a mortgage.
