Sell your mortgaged property for cash

Yes. The vast majority of house sales involve properties with an outstanding mortgage. When you sell, the mortgage is repaid in full from the sale proceeds on completion day. Your solicitor arranges this by obtaining a redemption statement from your lender, which shows the exact amount needed to clear the mortgage on a specific date. The lender is paid first from the sale proceeds, and the remaining equity is transferred to you. This is a completely standard part of the conveyancing process.

On completion day, your solicitor uses the sale proceeds to pay off the mortgage in full. The lender provides a redemption figure that includes the outstanding balance plus any interest accrued up to the completion date, plus any applicable early repayment charges. Once the mortgage is repaid, the lender releases the charge on the property, and the title transfers to the buyer free of the mortgage. Any money left over after the mortgage is cleared and costs are paid is your equity, which is transferred to your bank account.

It depends on your mortgage terms. If you are within a fixed rate, tracker, or discounted rate period, there is usually an early repayment charge (ERC) for leaving the deal early. ERCs typically range from 1% to 5% of the outstanding balance and decrease over the term of the deal. If you are on your lender's standard variable rate (SVR), there is usually no early repayment charge. Check your mortgage offer document or contact your lender to find out. Your solicitor will factor any ERC into the completion statement so you know exactly what you will receive.

This is called negative equity, and it makes selling more complicated because the sale proceeds will not cover the mortgage balance. You would need to make up the shortfall from savings or arrange a negative equity transfer with your lender (porting the shortfall onto a new mortgage). Some lenders will agree to a short sale where they accept less than the full balance, but this is not guaranteed. If you are in negative equity, speak to your lender and seek financial advice before committing to a sale.

Selling to a cash buyer like HouseBought4Cash, you can complete in as little as 7 to 14 days. The mortgage redemption process does not significantly delay a cash sale - your solicitor simply obtains the redemption figure from the lender, which usually takes 24 to 48 hours, and arranges for the mortgage to be repaid from the sale proceeds on completion. The entire process is handled by your solicitor as part of standard conveyancing.

If the property has been your main residence throughout ownership, Private Residence Relief means no Capital Gains Tax is due on the sale, regardless of how quickly you sell. The mortgage repayment itself has no tax implications - you are simply clearing a debt. If you sell a buy-to-let or investment property with a mortgage, CGT may apply to any gain above your annual allowance. The speed of the sale does not affect the tax position. We recommend consulting a tax adviser for your specific circumstances.

Bridging loans can help if you need to purchase a new property before your current mortgaged home is sold. They are short-term loans (6 to 18 months) secured against one or both properties, with interest rates of 0.5 to 1.5 percent per month. You would repay the bridging loan from the proceeds of your property sale. However, selling to a cash buyer like HouseBought4Cash often eliminates the need for a bridging loan because completion happens in as little as 7 days, giving you access to your equity quickly to fund your next purchase without the cost of bridge financing.