Can You Sell a House With a Mortgage?

Published on April 29, 2016 by John Stringer in News, Selling

Can you sell a house with a mortgage? That’s the question you may be facing if you’re currently struggling to repay your debt.

These days getting a mortgage is only half the battle. The other half is making sure you can pay it. A lot of homeowners struggle to repay their mortgage debt. Whether it’s down to a change in circumstances or whether you’re struggling with changes in interest; not being able to pay your mortgage can be extremely worrying. Here we’ll look at the most common mortgage problems and why selling to a quick cash buyer might be the answer.

Common mortgage problems

If you’re wondering “Can I sell a house with a mortgage?”, it’s likely because you’re currently facing one of many common mortgage problems. The main problems homeowners have with their mortgage include:

Being unable to pay mortgage debts
Interest only mortgage is coming to an end
Negative equity
Interest rates increase
A court order to sell has been received

A change in circumstances is often the most common reason homeowners can no longer afford to repay their mortgage. Being made redundant is one of the leading issues that causes problems with repayments. Lenders are usually lenient for a few months, but if you’re struggling to find work for months at a time, that’s when problems can occur. Once the debt starts to build up it’s extremely difficult to get on top of it and the problem can easily spiral out of control.

Another problem many homeowners are having is their interest only mortgage is coming to an end. Now at first, interest only mortgages can seem like an attractive option. The monthly repayments are quite low as you are only paying the interest, not the actual debt itself. The trouble is, once the interest only period ends, you’re expected to pay off the debt in full. So say you took a mortgage out on a £150,000 property, at the end of the interest only period, you’ll have to pay off the £150,000 in full. That’s a lot of money to find, especially if you haven’t put anything away throughout the years to contribute to it.

Negative equity is an increasing problem that occurs when the value of your property is less than the mortgage. In this instance, you cannot sell the property in order to pay off the mortgage. However, there are ways around this. You could boost the value of the property via upgrades and improvements. You could also speak to your mortgage lender to see if they’ll allow you to move to another property. If you can find a cash buyer, you’ll be able to pay off the majority of the mortgage, making it more likely that the lender will allow you to move.

Variable mortgages can also become a problem. If interest rates rise, it could push you above your limit. Many homeowners have made the mistake of taking out a mortgage that they can only just afford. Therefore, if interest rates spike, it could cause major problems in terms of repayment.

Finally, you may have received a court order to sell the property. This largely occurs after a breakup. If it’s a joint mortgage and one partner has to move out, they may need money from the sale of the property to find somewhere else to live. Court orders can be issued to force a sale.

Benefits of a quick cash sale

So can you sell a house with a mortgage to eliminate any problems you’re having? The good news is, in the majority of cases you can. A quick cash sale can help you pay off the mortgage and start fresh.

While you are typically offered a lower amount in a quick cash sale, there are a lot of benefits that can with a quick cash sale. These include:

You can eliminate your debt
You won’t have to worry about estate agent fees
The property will sell quicker than it would with an estate agent
You’ll be free to move to or rent another property

Of course the biggest benefit is the fact you’ll eliminate your debt. Mortgage debts can cause significant stress. Many people lose sleep over their debt and it can have a negative impact on every aspect of your life. Your relationships suffer, you find it hard to work and the stress of it all can actually make you physically ill. It can seem like there’s no way out, but a quick cash sale can instantly eliminate the debt and allow you to get your life back on track.

Of course, you can always choose to sell through an estate agent. However, doing so could take months. Then there’s the fact that estate agents often charge extremely high fees. By the time the property is sold and the fees have been deducted, you could be left with very little cash left.

Selling through a cash buyer also ensures the home is sold quickly. If you’ve been struggling with mortgage problems for a while, making a quick sale is likely exactly what you need. Then of course, once the property is sold and you’ve received the cash, you’ll be free to start renting another property. Or if you have enough you could take on a smaller mortgage.

Things to consider

If you do decide to look for a cash buyer, it’s important to find one with a good reputation. There are some companies that prey on vulnerable people, ripping them off and providing a ridiculously low rate. You need to make sure you’re choosing a company that’s reliable and trustworthy.

Genuine Property Buyers has grown to be one of the best property cash buyers in the industry. We care about the people we buy from. Therefore, we strive to offer a fair price while guaranteeing a sale within just 28 days.

If you’re looking to sell your home quickly to get out of mortgage debts, fill in our short form to start the process. It takes just a couple of minutes and you’ll be making the first step towards getting out of the struggles you’re currently facing.