Search Coreco


The Ultimate Guide On Selling Your Home Before Your Mortgage Ends

This guide was last updated 7 May 2024

Selling your property before your mortgage term concludes can seem like a daunting task, but with the right approach and guidance, it can be a smooth and rewarding experience. Whether you’re relocating, upgrading, or downsizing, navigating the process effectively is essential to ensuring a successful sale and minimizing any potential financial implications. In this comprehensive guide, we’ll walk you through everything you need to know about selling your property before your mortgage ends, providing you with the knowledge and confidence to make informed decisions.

Assessing Your Mortgage Situation

Before diving into the selling process, it’s crucial to assess your current mortgage situation. Start by reviewing the terms of your mortgage agreement to understand any potential penalties or fees associated with early repayment or sale. Additionally, determine the outstanding balance on your mortgage and consider how selling your property will impact your financial obligations.

Understanding Early Repayment Charges

Many mortgage agreements include early repayment charges (ERCs) for borrowers who sell their property before the end of the agreed-upon term. These charges are typically calculated as a percentage of the outstanding mortgage balance and can vary depending on your lender and the terms of your mortgage agreement. Be sure to consult with your lender or mortgage advisor to understand the specific ERCs that may apply to your situation.

Assessing Your Property’s Market Value

Once you’ve assessed your mortgage situation, the next step is to determine the market value of your property. Consider enlisting the services of a professional appraiser or real estate agent who can provide you with an accurate valuation based on current market conditions, recent sales data, and the unique features of your property. Understanding your property’s market value will help you set a realistic asking price and attract potential buyers.

Preparing Your Property for Sale

Before listing your property on the market, take the time to prepare it for sale to maximize its appeal to potential buyers. This may involve decluttering and depersonalizing your space, making minor repairs and improvements, and enhancing curb appeal. Consider hiring a professional photographer to capture high-quality images that showcase your property in its best light.

Navigating the Selling Process

Once your property is ready for sale, work with a reputable real estate agent or property advisor to market your listing effectively and attract potential buyers. Be prepared to negotiate offers and consider factors such as the buyer’s financing, timeline, and contingencies. Additionally, work closely with your solicitor or conveyancer to ensure a smooth and timely closing process.

Addressing Your Mortgage Obligations

As you proceed with selling your property, be proactive in addressing your mortgage obligations to avoid any potential complications or penalties. Notify your lender of your intention to sell and work with them to coordinate the repayment of your mortgage loan. Keep in mind that you may need to settle any outstanding mortgage balance, along with any applicable ERCs, from the proceeds of the sale.

Seeking Professional Guidance

Throughout the selling process, don’t hesitate to seek professional guidance from experienced mortgage advisors, real estate agents, solicitors, and conveyancers. They can provide you with expert advice and support tailored to your specific circumstances, helping you navigate potential challenges and achieve a successful outcome.

Selling your property before your mortgage ends is a significant financial decision that requires careful planning and consideration. By assessing your mortgage situation, understanding potential charges and penalties, and working closely with experienced professionals, you can navigate the selling process with confidence and achieve your desired outcome. At Coreco, our team of expert advisors is here to provide you with the guidance and support you need to make informed decisions about selling your property and managing your mortgage obligations.

Your home may be repossessed if you do not keep up repayments on your mortgage. There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.


Andrew Montlake

Written by Andrew Montlake

Andrew Montlake, better known as Monty, began his journey with an Hons degree in Economics & Politics before starting in the mortgage industry in February 1994. As a main founder of Coreco in 2009, he successfully grew the brand, marketing, and communications, and was made MD in 2019 focussing on the overall vision, strategy, and culture of the company. As Coreco’s media spokesperson, Andrew can often be seen or heard on TV and radio as well as regularly commenting in the national, local, and trade press. He is the author of this acclaimed Mortgage Blog and is well-known for his social media, podcasts, and public speaking. Andrew is now proud to serve as Chairman of the Association of Mortgage Intermediaries, (AMI) as a cheerleader for the Mortgage Industry as a whole and continues to work at the coal face, writing mortgage business and advising clients.

Read more posts by Andrew