What happens to my mortgage when I sell my house?
When you sell your house, your mortgage does not transfer with the property. Instead, it is paid off in full as part of the sale process.
Before completion, your solicitor will contact your lender to request a redemption statement. This shows the exact amount needed to clear your mortgage, including any interest up to the completion date and any early repayment charges if applicable.
On completion of the sale, the buyer’s funds are used to:
- Repay your remaining mortgage balance directly to the lender
- Cover any early repayment charges or exit fees (if applicable)
- Release any remaining equity to you once all debts are settled
If the sale price is higher than your outstanding mortgage and costs, you will receive the remaining balance. If not, you might need to contribute additional funds to clear the mortgage in full.
The process is handled by your solicitor, so everything is settled on completion day without you needing to manage payments directly.
If you want a quicker and more straightforward route, Sell House Fast can provide a cash offer, which simplifies the process and helps you move without the delays often involved in traditional mortgage-dependent sales. When you sell your house, your mortgage is paid off in full from the sale proceeds.
