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Ways we can help
This is known as a ‘sale at shortfall’. If you want to sell your property, regardless of whether there are any mortgage arrears, it may be that the sale price won’t be enough to pay back your mortgage balance. If this is the case, you’ll need our approval to sell your property at a shortfall.
Important information about selling at a shortfall:
- You need to obtain an offer on your property before asking us to consider your request to sell your property at shortfall.
- All people named on the mortgage must agree to the sale at shortfall.
- We’ll obtain an independent valuation to make sure that the sale price is the true market value of the property.
- You’ll remain responsible for paying back any shortfall amount. There are certain exceptions to this if you’ve been declared insolvent (you’ll need to check with your trustee or the Official Receiver).
- We’ll report the shortfall amount to credit reference agencies and this may affect your ability to borrow money in future.
- We recommend that you avoid signing any sale contract or incurring any costs until we’ve provided approval for the shortfall sale.