Can I sell my house if I'm behind on mortgage payments?

Yes. You remain the legal owner until completion, so you can market or sell the property at any point up to the day the lender actually repossesses it. The mortgage balance, arrears, and fees are settled from the sale proceeds at completion.

Do I need my lender's permission to sell?

You don't need permission to market the property, but you do need your lender's cooperation to complete, because they hold the charge over the property and must confirm the redemption figure. Most lenders support a sale that clears the debt, since it avoids repossession costs on their side too.

What is a redemption statement?

It's a figure from your lender showing exactly what you owe to fully repay the mortgage on a given date, including the outstanding balance, arrears, interest, and any fees. Your solicitor requests this before completion and pays it from the sale proceeds.

What happens if my house is in negative equity?

If the sale price doesn't cover the redemption figure, you're left with a shortfall. This remains a debt to the lender, who can still pursue you for it after the sale, so it's worth discussing your options with a debt adviser before agreeing a price.

Can I sell after a possession order has been granted?

Yes, this is still possible right up until the eviction date, though it needs to move fast. Speak to your lender immediately, as they may be willing to pause enforcement while a sale is agreed, particularly if it will clear the debt in full.

Can I sell my house with mortgage arrears?

Name: The Quick House Buyers — London
Address: Level 6, Design Centre East, Chelsea Harbour, London, England, SW10 0XF, GB
Telephone: 020 3744 0249

Written and reviewed by Kris McClory, Head of PurchasesLast reviewed 6 August 2026

Yes. You can sell the property at any point while you're still the legal owner, including after a court has granted a possession order but before eviction takes place. The mortgage balance and arrears are paid off from the sale proceeds at completion, using a redemption statement from your lender.

Opened bank envelope and a mortgage statement beside a hallway phone

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Do you still own the house while you're in arrears?

Yes. Falling behind on payments doesn't transfer ownership to the lender. You remain the legal owner and can market, negotiate, and sell the property in the normal way. The mortgage lender holds a charge over the property, which means it must be repaid from the sale proceeds before you receive anything, but it doesn't stop you from being the one who sells.

How does the lender get repaid when you sell?

Your solicitor requests a redemption statement from the lender before completion. This sets out the exact amount needed to clear the mortgage in full on the completion date, including the outstanding balance, any arrears, accrued interest, and admin fees. That figure is paid directly to the lender from the sale proceeds at completion, and the charge on the property is removed. Whatever is left over, if anything, comes to you.

What if the sale doesn't cover the mortgage?

If your property is in negative equity, or the arrears and fees have grown large, the sale price may not be enough to clear the redemption figure. That gap is called a shortfall, and it remains your debt to the lender after the sale. This is true whether you sell privately, sell to a cash buyer, or the lender repossesses and sells the property itself. Speak to a free debt adviser, such as StepChange or National Debtline, before agreeing a sale price if you think this applies to you, so you understand what you'll still owe.

Can you sell after a possession order is granted?

Yes, this is still legally possible. A possession order sets out when the lender can take back the property, but until the eviction actually happens, you remain the owner and can still sell. In practice this needs to move quickly: contact your lender as soon as an order is made, tell them you intend to sell, and ask whether they'll pause enforcement while the sale completes. Most lenders will consider this, since a completed sale clears their debt without the cost of repossessing and marketing the property themselves.

What is a consent to sell arrangement?

Some lenders offer a formal "consent to sell" or "assisted voluntary sale" arrangement instead of pursuing repossession through the court. Under this, the lender agrees to let you market and sell the property yourself, usually within a set timescale, and pauses legal action while you do. It gives you more control over price and timing than a repossession sale, but it still comes with a deadline, so it suits people confident they can complete a sale within a few months rather than those who need more time.

Selling routes at a glance

Options once you're behind on your mortgage

Options once you're behind on your mortgage
Route	Who controls the price	Typical timescale
Sell privately with an agent	You	4 to 6 months
Sell to a cash buyer	You, accepting or rejecting the offer	7 to 28 days
Consent to sell	You, within a lender deadline	Usually 3 to 6 months
Lender repossession sale	The lender	Months, after court process completes

Where to get free advice

Before deciding how to sell, or whether to sell at all, it's worth speaking to a free, independent adviser. StepChange, Citizens Advice, National Debtline, MoneyHelper, and Shelter can all help you understand your options and what a shortfall or repossession would mean for you specifically. A fast sale is one option among several, not a fix for every situation.

Common questions

Can I sell my house if I'm behind on mortgage payments?: Yes. You remain the legal owner until completion, so you can market or sell the property at any point up to the day the lender actually repossesses it. The mortgage balance, arrears, and fees are settled from the sale proceeds at completion.
Do I need my lender's permission to sell?: You don't need permission to market the property, but you do need your lender's cooperation to complete, because they hold the charge over the property and must confirm the redemption figure. Most lenders support a sale that clears the debt, since it avoids repossession costs on their side too.
What is a redemption statement?: It's a figure from your lender showing exactly what you owe to fully repay the mortgage on a given date, including the outstanding balance, arrears, interest, and any fees. Your solicitor requests this before completion and pays it from the sale proceeds.
What happens if my house is in negative equity?: If the sale price doesn't cover the redemption figure, you're left with a shortfall. This remains a debt to the lender, who can still pursue you for it after the sale, so it's worth discussing your options with a debt adviser before agreeing a price.
Can I sell after a possession order has been granted?: Yes, this is still possible right up until the eviction date, though it needs to move fast. Speak to your lender immediately, as they may be willing to pause enforcement while a sale is agreed, particularly if it will clear the debt in full.
What is a consent to sell arrangement?: It's where your lender agrees to let you sell the property yourself, on a timescale they set, instead of pursuing repossession through the court. It usually still requires the property to be marketed and sold within an agreed period.