Selling a home with a mortgage: how it works
Yes, you can sell a home that still has a mortgage. In practice, the sale follows the usual conveyancing steps, but there are timing, paperw
4 min read · Updated 9 August 2026 · By Dwellmark Editorial
Yes, you can sell a home that still has a mortgage. In practice, the sale follows the usual conveyancing steps, but there are timing, paperwork and cost points to watch. The facts below cover what is evidenced in the source material and avoid assumptions where the knowledge base does not give detail.
The basics of selling with a mortgage
Before marketing, you must order an EPC for potential buyers. If you use an estate agent, the agent must belong to a government-approved redress scheme, and they must confirm their charges and rate of commission in writing when they agree to act for you. Fees are often a percentage of the final selling price and can vary from less than 1% to 3.5%; advertising, photos, boards and VAT may be extra, depending on the contract.
SDLT and the buyers obligations
The buyer must send an SDLT return to HMRC and pay any tax due within 14 days of completion, with penalties and interest if this is late. The SDLT consideration can include the transfer of a debt, including the value of any outstanding mortgage. This section is about the buyer’s tax position rather than the seller’s mortgage itself.
Registration after completion
After completion, the buyer must apply to HM Land Registry to register the transfer and any mortgage within 2 months. The source says late registration makes the transfer void as to the legal estate. HM Land Registry says register-update transfers take 16 weeks to complete, with most completed in about 8 months, but legal ownership rights are secured from the moment the application is received.
What happens to your mortgage
MISSING: verified facts explaining how the seller’s existing mortgage is redeemed, how the lender is repaid on completion, or what happens if sale proceeds do not cover the mortgage
Getting the timing right
The exchange deposit is often 10% of the purchase price, although it can vary. Completion usually takes place about four weeks after exchange of contracts, but it can be earlier. These are general timing points from the source material, not fixed rules for every sale.
Key facts
| Fact | Status |
|---|---|
| All residential estate agents must join a government-approved redress scheme (The Property Ombudsman or the Property Redress Scheme); you ca | unverified |
| You must send an SDLT return to HMRC and pay the tax within 14 days of completion; penalties and interest apply if it is late. | unverified |
| SDLT consideration can include the transfer of a debt, including the value of any outstanding mortgage. | unverified |
| The buyer must apply to register the transfer and any mortgage at HM Land Registry within 2 months of completion; late registration makes th | unverified |
| HMLR register-update transfers take 16 weeks to complete, with most completed in about 8 months; legal ownership rights are secured from the | unverified |
| The exchange deposit is often 10% of the purchase price but it can vary, and completion of the purchase usually takes place about four weeks | unverified |
| You must order an EPC for potential buyers before you market a property to sell. | unverified |
| Estate agent commission can vary from less than 1% to 3.5% of the selling price, and the agent must confirm the charges and rate in writing | unverified |
| Most estate agents calculate their fees as a percentage of the final selling price; this can vary from less than 1% to 3.5% (the rate of com | unverified |
| The estate agent must confirm the charges and rate of commission in writing when they agree to act for you. | unverified |
| Check whether the fee includes advertising costs, preparing details and photographs, the for-sale board and VAT - these can be extra. | unverified |
| Sole selling rights means the estate agent has the exclusive right to sell your home and you still pay commission even if you find the buyer | unverified |
Source: GOV.UK - Redress scheme for estate agencies — Guidance checked August 2026
Source: GOV.UK - Stamp Duty Land Tax — Guidance checked August 2026
Source: GOV.UK - Stamp Duty Land Tax — Guidance checked August 2026
Source: legislation.gov.uk - Land Registration Act 2002 s.6-7 — Guidance checked August 2026
Information and review status
This article provides general information only and is not professional advice. It was last reviewed and updated on 2026-08-09 using the sources cited in this article. Unless expressly stated otherwise, it has not been independently reviewed by a suitably qualified external professional. Laws, regulations, guidance, prices and market conditions can change, so you should verify information relevant to your circumstances before relying on it.Generated from dossier selling-with-a-mortgage. Review before publishing.
Related guideContinue reading the cost of selling guide.Related guideContinue reading the property chains guide.Browse all guidesReturn to the full guide index.
Sources
- GOV.UK - Redress scheme for estate agencies - Guidance checked August 2026
- GOV.UK - Stamp Duty Land Tax - Guidance checked August 2026
- GOV.UK - Stamp Duty Land Tax - Guidance checked August 2026
- legislation.gov.uk - Land Registration Act 2002 s.6-7 - Guidance checked August 2026
Keep reading
Estate agent fees explained: what you pay and why
Estate agent fees are usually charged as a percentage of the final selling price, but what you pay depends on the agreement you sign and any
How to sell your house fast: cash buyers, quick sales and the traps
Chain-free cash buyers, quick-sale companies and honest speed tactics. What actually sells a home in weeks - and the 15–25% discounts hiding in “we buy any home” offers.
How much does it cost to sell a house in the UK?
Agent fees, EPC, conveyancing, removals - and the taxes people forget. The full cost of selling your home in 2026, with a realistic budget table.
How to sell your house: the complete guide
Preparation, pricing, agents, offers, and the legal finish - how to sell your home for the best price without losing your mind. Includes the timeline and the traps that cost sellers thousands.