Can I sell my house if I still have a mortgage?
Published 16 October 2026 · 5 min read · By Evren Ergin
Yes, and it is the normal way to sell: on completion your solicitor pays off the lender from the sale money, and you keep what is left. The two numbers to know before you list are your redemption figure and any early repayment charge.
TL;DR
- •Selling with a mortgage is normal: 29% of households in England are buying with a mortgage, against 36% who own outright (English Housing Survey 2024-25).
- •Your solicitor repays the lender on completion day using the buyer's money, so you do not need to clear the mortgage first.
- •A redemption statement from your lender shows the exact amount to repay, including any early repayment charge.
- •Your equity is the sale price minus the redemption figure and selling costs; that is the money you take to your next move.
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A mortgage redemption is the final repayment of your mortgage, which happens when the home is sold. A redemption statement is the lender's written figure for that repayment on a given date, including interest to that day and any charges. Equity is the part of the home's value you own outright: the sale price minus what you still owe.
How does the mortgage get paid off when I sell?
You do not pay the mortgage off yourself before selling. On completion day the buyer's money reaches your solicitor, who pays your lender the redemption figure, pays the estate agent and any other costs, and sends you the balance. The lender then removes its charge from the title at HM Land Registry.
What should I do before I put the house on the market?
1. Find your outstanding balance
Check your latest annual mortgage statement or your lender's app for the balance still owed.
2. Check for an early repayment charge
Look at your mortgage offer for the end date of your fixed or tracker deal and the early repayment charge if you repay before then.
3. Ask whether you can port
If you are buying again, ask your lender whether you can move the mortgage to the new home, which usually avoids the early repayment charge on the amount you take with you.
4. Get a realistic price range
Ask several local agents to value the home so your equity figure is based on what buyers in your area pay, not on a single optimistic number.
5. Work out your equity
Take the lower end of the price range, subtract the balance, any early repayment charge, agent fee and legal costs, and see what is left.
6. Ask for a redemption statement when you have a buyer
Your solicitor normally requests the formal statement close to exchange so the figure is accurate for completion day.
How much will I have left after the mortgage is repaid?
Worked example; your own figures will differ
| Item | Example amount | Where the figure comes from |
|---|---|---|
| Sale price | £300,000 | The agreed price with your buyer |
| Mortgage balance | −£180,000 | Your lender's redemption statement |
| Early repayment charge at 3% (if still in a fixed deal) | −£5,400 | Your mortgage offer |
| Estate agent fee at 1.2% plus VAT | −£4,320 | Your agent contract |
| Legal fees, illustrative | −£1,500 | Your solicitor's quote |
| Equity to take to your next move | £108,780 | What your solicitor sends you |
In this example the early repayment charge costs more than the estate agent. That is why it is worth checking your deal's end date before you choose when to sell.
What is an early repayment charge and how big can it be?
An early repayment charge is a fee your lender takes if you repay a fixed or tracker deal before it ends. It is usually a percentage of the amount repaid and often steps down each year. One major lender's own example charges 5% with five years of the deal left and 3% with three years left.
On a £180,000 balance, every 1% is £1,800. If your deal ends in a few months, waiting can be worth more than any small change in the market.
Why does this matter more in 2026?
- The Bank of England held Bank Rate at 3.75% on 17 September 2026, with three of nine members voting for a rise.
- Average two-year and five-year fixed mortgage rates were close to 6% in early October 2026, the highest since late 2023, according to Moneyfacts.
- If you are on a cheaper fixed rate, porting it to your next home could save more than a new deal would cost, so ask your lender before you choose a buyer's timeline.
You do not need to clear the mortgage to sell. You need to know the figure that clears it.
What if I owe more than the house is worth?
That is negative equity, and it changes the plan. You would need to cover the shortfall from savings or agree terms with your lender before you can complete. Get a realistic local price range first, because a single high valuation can hide the problem until a buyer's survey or mortgage valuation brings it out.
ValuQ gives UK homeowners free, side-by-side property valuations from competing local estate agents. Seeing several local agents' figures side by side is the clearest way to know your equity before you commit to selling.
Selling with a mortgage: common questions
Do I need my lender's permission to sell?
No. You can sell whenever you choose. The lender's charge is simply repaid from the sale money on completion. You only need the lender's agreement if you want to port the mortgage, borrow more, or if the sale will not cover what you owe.
When do I get the redemption statement?
Your solicitor usually asks the lender for it shortly before exchange of contracts, so the figure is accurate for the completion date. You can ask for an early estimate at any time to help you plan.
Will I pay an early repayment charge if I port my mortgage?
Usually not on the amount you move to the new home, as long as the new purchase meets the lender's criteria and timing rules. If you borrow less on the new home, a charge can apply to the part you repay. Ask your lender for its porting terms in writing.
Sources
- [1]English Housing Survey 2024 to 2025: headline findings on demographics and household resilience (MHCLG) · 2025-12-04 · https://www.gov.uk/government/collections/english-housing-survey-2024-to-2025-headline-findings-on-demographics-and-household-resilience
- [2]Lloyds Bank: early repayment charges explained · Accessed 2026-10-16 · https://lloydsbank.com/islands/personal/mortgages/managing-your-mortgage-payments.html
- [3]Leeds Building Society: how to read your mortgage redemption statement · Accessed 2026-10-16 · https://leedsbuildingsociety.co.uk/mortgages/redeeming-your-mortgage/statement-guide
- [4]Moneyfacts: average five-year fixed rate at 6% · October 2026 · https://moneyfactscompare.co.uk/news/mortgages/avg-5-year-fixed-rate-at-6pc/
- [5]Moneyfacts: Bank of England base rate, September 2026 · 2026-09-17 · https://moneyfactscompare.co.uk/news/banking/bank-of-england-base-rate-september-2026/
Terms in this article
Plain-English definitions from the ValuQ property glossary.
Exchange of contracts
Exchange of contracts is the moment a sale becomes legally binding, when the two signed contracts are formally swapped and the deposit is paid.
Redemption statement
A redemption statement is the lender's formal breakdown of the redemption figure: balance, interest, early repayment charges and admin fees.
Mortgage valuation
A mortgage valuation is the lender's check that the property is adequate security for the loan, not an inspection for the buyer's benefit.
Redemption figure
The redemption figure is the exact amount required to pay off your mortgage completely on a stated day, including interest to that day and any charges.
HM Land Registry
HM Land Registry is the government body recording ownership of land in England and Wales, whose register is the definitive proof of title.
Negative equity
Negative equity is owing more on the mortgage than the home is currently worth.
Completion date
The completion date is the contractual day the sale must complete, fixed at exchange and binding on both sides.
Mortgage offer
A mortgage offer is the lender's formal, binding commitment to lend, issued after full underwriting and valuation.
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