Selling a house without equity

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Suitable For: Anyone concerned about the value of their home compared to any outstanding debts on the property

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This post was written by UK PCB

1st June 2020

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Selling a house without equity

If you find yourself without equity, then you could find yourself in a difficult position when it comes to selling a house.

Negative equity can be a big problem for homeowners, especially if they are looking to drop properties on the market. Negative equity means that your property is worth less than the mortgage you took out on it, and the amount you owe on the mortgage.

This happens because housing prices and property prices might have fallen drastically since you bought, leaving you in a technical deficit if you were to sell now. It might have been worth 200,000 when you bought, but it’s worth 100,000 now. This is a problem because selling your house will mean you won’t be able to make enough money from the sale to cover the remainder of your outstanding mortgage payments, leaving you even less cash if you’re purchasing a new home somewhere else.

There are ways to sell your house though, even if you don’t have any equity, and without having to stay put.

Reduce your negative equity

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The first thing to look at when you’re selling a house without equity is to reduce the negative equity. This is simpler said than done because the most effective way to do this is to overpay your mortgage.

Each existing mortgage has different terms and it might not even be possible. You need to contact your mortgage provider or mortgage brokers and see if you can pay back more each month than you’re scheduled to, in order to make up the deficit.


If you sell with negative equity, then you’ll still have to make up the deficit on your mortgage and pay your mortgage lender. This could mean paying two mortgages for a period of time.

If this is unavoidable, then might simply have to downsize. This isn’t ideal of course, as you want to be moving up the property ladder, not down.

Rent out your house

If you don’t want to lose out on cash by selling, then another option is to simply rent out your house instead of selling. You can wait for the market to readjust while you make back money for the rent in the short term.

Then, when you’re in a batter position, you can sell quickly if the price rises. If the price doesn’t rise, then you’ve lost nothing by waiting and making cash renting out your home anyway!

If you’re struggling to sell a house without equity, then call UK Property Cash Buyers today. We can help you, as an agent, to sell your home quickly, and for the best possible price. We offer a free, no-obligation quote for your home.

We buy any home regardless of its condition or location. If you need a trustworthy property company and estate agent to work with and need to sell quickly, then call UK Property Cash Buyers now!

We buy any house regardless of condition or location. If you are looking for a trustworthy property company then contact UK Property Cash Buyers today for a hassle free quote for any house.

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