selling

Negative equity: can you still sell your home?

Negative equity means you owe more than your home is worth. See how to check, your options, what happens to the shortfall and where to get free advice first.

5 min read
Last reviewed 16 October 2026
By Your Property Check team

Part 1 of 7

Get free advice first

If you are worried about money, speak to a free, independent adviser before you make any decision about your home. These three are free to use:

MoneyHelper, the public money guidance service, has a page on negative equity.
StepChange, a debt charity, explains the options if you are struggling with your mortgage.
Citizens Advice sets out what happens when a sale does not cover the mortgage.

Contact your lender as well, and do it early. StepChange says your lender is there to help and that the sooner you contact them, the better.

Part 2 of 7

What negative equity means

Equity is the part of your home you own outright: what it is worth minus what you owe on it. StepChange describes negative equity as the situation where the property is worth less than you owe to the lender.

Negative equity is a position on paper. It does not by itself mean you have to sell. It matters most when you want to move, remortgage or sell, because the money from a sale would not be enough to clear the loan.

Part 3 of 7

How to check whether you are in negative equity

You need two numbers.

What you owe. Get your current balance from your lender. Ask for a redemption statement if you are thinking of selling, because it shows the figure to clear the mortgage on a particular date. If your deal has an early repayment charge, our guide to the early repayment charge explains how to find it.
What the home is worth. Our free house valuation gives a range based on Land Registry sales for your postcode, with the working shown. It is an estimate, not a formal valuation, so treat it as a starting point and expect the figure a lender or surveyor uses to differ.

If the top of your value range is below what you owe, you may be in negative equity. If the range straddles your balance, the position is unclear and a local agent or surveyor's opinion is worth getting. Remember that selling also costs money, so even a small amount of equity on paper can disappear once fees are paid. Our equity calculator and the cost of selling guide help with that sum.

Part 4 of 7

Your options

There is no single right answer, and several options can be combined. Ask your lender and an adviser which apply to you.

Option	What it involves	What to ask
Stay put	Keep paying and wait. Negative equity can fade if the value rises or the balance falls	Can I afford the payments if rates change?
Overpay	Pay down the balance faster	Does my deal allow overpayments, and is there a charge?
Change the mortgage	StepChange lists switching to interest-only, extending the term or a payment holiday as things a lender may discuss	What does each cost over time?
Remortgage or move the mortgage	A new lender will look at what the home is worth now, so ask whether this is possible	Will any lender accept this, and is there an early repayment charge?
Rent the property out	Ask your lender whether letting is allowed and on what terms	What consent, rate or fees apply?
Sell and pay the shortfall	Sell for less than you owe and repay the difference	How will I repay it, and does the lender agree?
Assisted voluntary sale	StepChange says some lenders offer this to people in financial difficulty, giving more time to sell and possibly help with costs	Does my lender offer it?

Part 5 of 7

If you sell: what happens to the shortfall

If the home sells for less than the mortgage, Citizens Advice says you have to pay the difference, and it calls that the shortfall. Your lender will send you a bill for it. If you cannot make an arrangement to repay it, the lender may go to court, and lenders usually have a time limit for doing so.

Before you sell, Citizens Advice says you need your lender's permission if the sale will not cover the mortgage and any other secured debts. If your lender refuses, you can complain to the Financial Ombudsman Service or apply to court for an order for sale.

Talk to the lender about repaying the shortfall before you sell, not after. Ask whether they will agree a repayment plan, and get any agreement in writing. An adviser can help you work out what you can afford.

Until the sale completes, you remain responsible for the mortgage payments, the buildings insurance and other costs, and StepChange advises keeping the buildings insurance until the sale is complete. StepChange also says your lender may agree to smaller mortgage payments until you sell.

Part 6 of 7

Charging orders: a short explainer

A charging order is a separate matter from your mortgage. Citizens Advice explains that it is a court order, obtained after a County Court Judgment, that secures a debt against your home or other property.

It starts as an interim order, which stops you selling without the creditor knowing.
A final order means that if you sell, you must pay the creditor back out of the sale proceeds.
It does not by itself force a sale. Only a separate order for sale can do that, and the creditor must apply for it.

If you have other debts as well as a mortgage, mention them when you speak to an adviser, because they may affect which options are open to you.

Part 7 of 7

What not to do

Do not stop paying and hope the problem goes away. Contact your lender first.
Do not agree to any arrangement you do not understand. Ask a free adviser to read it.
Do not take a quick fix that puts your home at greater risk.

This page is general information, not financial or legal advice. A conveyancing solicitor can explain how a sale below the mortgage balance would work for your property.

If you are also dealing with other pressures on your finances, our financial difficulty page lists further things to check before you decide.

Questions, answered

Frequently asked questions

What is negative equity?

It is when your home is worth less than you owe on it. StepChange describes it as the property being worth less than you owe to the lender. It does not by itself mean you must sell, and it matters most when you want to sell, move or remortgage.

Can you sell a house with negative equity?

Yes, but the sale will not clear the mortgage, so you would owe the shortfall. Citizens Advice says you need your lender's permission if the sale will not cover the mortgage and any other secured debts. Talk to your lender and a free adviser first.

What happens to the mortgage debt if I sell for less than I owe?

The difference is a shortfall that you still owe. Citizens Advice says your lender will bill you for it and may go to court if you cannot make an arrangement to repay it. Ask your lender about a repayment plan before you sell and get any agreement in writing.

What is an assisted voluntary sale?

StepChange says some lenders offer an assisted voluntary sale scheme to people in financial difficulty. It gives you more time to sell and may help with the costs. Ask your lender whether they have one and what the terms are.

What is a charging order on a property?

It is a court order, obtained after a County Court Judgment, that secures a debt against your home. If you sell, the creditor is paid back from the proceeds. It does not on its own force a sale, because a separate order for sale is needed.

Where can I get free help with negative equity?

MoneyHelper, StepChange and Citizens Advice all give free, independent guidance on mortgage problems. Contact your lender early as well. StepChange says the sooner you contact them, the better.

Where this comes from

Sources

Last reviewed 16 October 2026 by the Your Property Check team. This page is general information, not legal, tax or financial advice. For your own situation, speak to a conveyancing solicitor or another qualified professional.