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, paperwork and cost points to watch. The facts below cover what the sources evidence and avoid assumptions where no verified figure exists.

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. 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.

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

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