Should you pay your mortgage the month you sell the house? Mortgage payments, the financial cornerstone of homeownership, operate within a carefully structured system designed to balance affordability with lenders’ profit margins—yet many Britons remain perplexed by exactly how these monthly transactions function in practice.
According to the latest figures, the average UK homeowner faces a monthly mortgage payment of £1,428, based on the average house price of £289,707 as of November 2024. The financial landscape shows that the typical mortgage taken out in late 2024 amounted to £200,442, while the average outstanding mortgage debt per household stands at £133,508. With over 12.5 million outstanding mortgages in the UK totalling approximately £1.67 trillion, understanding these regular financial commitments has never been more critical.
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How Monthly Mortgage Payments Are Calculated and Structured
When you borrow money to purchase property, your monthly mortgage payment typically consists of two main components: the principal (the original amount borrowed) and the interest (the cost of borrowing that money). With a repayment mortgage, each monthly payment covers both interest and a portion of the capital, ensuring that by the end of the term, you’ll have paid off the full loan amount—assuming you maintain regular payments.
The exact amount you pay each month depends significantly on several factors:
The loan amount (how much you’ve borrowed)
The interest rate applied to your mortgage
The length of your mortgage term (typically 25-30 years)
The type of mortgage product you’ve chosen
Your loan-to-value ratio (LTV).
Most homeowners prioritise securing an affordable monthly payment that fits comfortably within their household budget. Research shows that many mortgage applicants have a specific target monthly amount in mind, often related to what they currently pay in rent or on an existing mortgage. This target figure frequently drives decision-making throughout the mortgage process, with many borrowers willing to adjust other features—such as the repayment term—to achieve their desired monthly payment
When Do You Stop Paying the Mortgage on a Property For Sale?
You must pay the mortgage until the date the sale has completed. After that point, the new owner will take over responsibility for the payments.
Do you have to pay the mortgage in the month you sell? It depends on the completion date. If the mortgage is due before the completion date, you will need to pay it. If it is due after, the new owner will need to handle it (unless they are buying with cash).
It is also important to remember that you will be liable for estate agency, solicitor, and early redemption costs if you end your mortgage before the end of the term.
Understanding Different Types of Mortgage Rates and Their Impact on Payments
The type of mortgage rate you select significantly influences how your payments work both now and in the future.
Fixed-Rate Mortgages: Stability in Uncertain Times
With a fixed-rate mortgage, your monthly payments remain unchanged for a predetermined period, typically between two and five years, though some lenders offer terms up to ten years. This predictability provides peace of mind and makes budgeting considerably easier, as you’re protected from interest rate fluctuations during the fixed period.
Once this initial fixed period ends, your mortgage automatically switches to the lender’s Standard Variable Rate (SVR) unless you opt to remortgage to a new deal. This transition typically results in higher monthly payments, as SVRs tend to be substantially higher than introductory fixed rates—the average SVR as of March 2025 stands at 7.99%.
Variable-Rate Mortgages: Payments That Fluctuate with the Market
Variable-rate mortgages come in several forms, with tracker mortgages being particularly common. These products directly follow the Bank of England base rate, meaning your monthly payments will increase when the base rate rises and decrease when it falls.
The table below illustrates how changes in interest rates affect monthly payments on a £200,000 mortgage with a 25-year term, demonstrating why understanding rate variations is crucial for financial planning:
| Interest rate | Monthly mortgage payment | Difference from previous rate |
|---|---|---|
| 4.85% | £1,152 | Base rate |
| 4.6% | £1,123 | -£29 |
| 4.35% | £1,095 | -£28 |
| 4.1% | £1,067 | -£28 |
| 3.85% | £1,039 | -£28 |
As this comparison shows, even seemingly small changes in interest rates can translate to meaningful differences in your monthly outgoings. This explains why many borrowers closely monitor economic forecasts and Bank of England announcements that might signal future rate movements.
Managing Mortgage Payments: Overpayments & Flexibility Options
Most mortgage providers offer options to manage payments beyond the standard monthly requirement. Making overpayments can significantly reduce your total interest over the life of the mortgage and potentially shorten your mortgage term.
There are typically two approaches to making overpayments:
Regular overpayments: Increasing your monthly payment amount
Lump-sum overpayments: Making one-off additional payments when funds become available.
When you make overpayments, your mortgage balance reduces immediately, and you begin to accrue less interest. With a lower balance, you can either:
Maintain your current monthly payment to repay your mortgage sooner
Ask your lender to recalculate your monthly payment immediately, reducing your monthly outgoings while keeping the same end date
Apply to change the remaining term if your mortgage is on a repayment basis.
However, be aware that many mortgages carry early repayment charges (ERCs) if you overpay beyond a certain threshold—typically 10% of the outstanding balance per year—during the initial fixed or discounted period
Can you stop paying a mortgage?
No. If you stop paying your mortgage, then your account will go into arrears. The bank will start repossession proceedings, and your credit score will be affected.
If you use the proceeds from the sale of your property to pay off the remainder of your mortgage? If so, there would be nothing left to pay.
However, if that is not the case, you may be able to ‘port’ your mortgage. In simpler terms, this means ending the mortgage on the property you’re selling, and your lender may then open a new one against any property that you are buying.
If you are in negative equity, then you should contact your mortgage lender. They will be able to tell you their approach to such situations.
What Happens to Your Mortgage When Selling Your Home
What happens to my mortgage when I sell my house? This question concerns many homeowners contemplating a property sale. When you sell your home, the proceeds from the sale first go toward paying off your existing mortgage, with any remaining funds transferred to you. If your property has appreciated in value since purchase, you’ll likely have additional equity to put toward your next home.
Do you still pay mortgage when selling your house? Yes, you remain responsible for mortgage payments until completion of the sale. Your mortgage is secured against the property, meaning the debt remains active until the sale completes and the mortgage is repaid from the proceeds. Missing payments during this process could damage your credit rating and complicate your sale.
Can I Suspend Mortgage Payments While Selling My House?
Suspend mortgage payments while selling house—is this possible? In certain circumstances, some lenders may allow you to take a “payment holiday” or “instalment break” if your mortgage is up-to-date. However, this typically involves a fee and interest continues to accrue during the suspended period. This should be considered a temporary solution rather than a standard approach to managing payments during a sale.
What to do if you can’t pay your mortgage during the selling process? Contact your lender immediately to discuss your options. Potential solutions might include:
Temporarily switching to interest-only payments
Extending your mortgage term to reduce monthly payments
Requesting a formal payment holiday if eligible
Exploring government support programs like Support for Mortgage Interest if you receive qualifying benefits
Early communication with your lender is crucial—they may be more accommodating if approached before payments are missed.
Understanding Your Last Mortgage Payment Before Completion
Last mortgage payment before completion often causes confusion among sellers. Typically, your final mortgage payment will be calculated up to the completion date. On completion day, your solicitor will request a “redemption statement” from your lender showing the exact amount needed to repay the mortgage in full, including any early repayment charges if applicable.
Can I skip my last mortgage payment before completion? This approach carries significant risks. While it might seem tempting to skip the final payment if it falls close to completion, doing so could complicate your sale and potentially damage your credit score. Instead, speak with your solicitor and lender about exactly when your final payment should be made
Do You Have to Pay Your Mortgage When Your House Sale Has Been Exchanged?
Do you have to pay your mortgage when your house sale has been exchanged? Yes, you remain legally responsible for mortgage payments after exchange and before completion. Exchange of contracts makes the sale legally binding, but the mortgage remains your responsibility until completion occurs and funds are transferred to repay the loan. When do you stop paying mortgage when selling house? You stop making regular payments once the mortgage is repaid in full on completion day, not at exchange of contracts
What If My House Sells for Less Than My Mortgage?
What happens if your property sells for less than your outstanding mortgage? This situation, known as negative equity, can create significant financial challenges. You’ll still be responsible for repaying the entire mortgage amount, even if the sale proceeds don’t cover it.
How to Make Your Final Mortgage Payment When Selling
Making your final mortgage payment requires careful coordination between you, your solicitor, and your lender. To ensure a smooth process:
Request a redemption statement from your lender through your solicitor
Check for any early repayment charges if you’re within a fixed-rate period
Ensure your solicitor has the correct account details for the final payment
Confirm with your lender that the payment has been received and the mortgage has been discharged
Keep all documentation confirming the mortgage has been fully repaid
Your solicitor will handle most of this process, but staying informed about each step helps avoid potential complications.
Talk to Property Saviour
Worried about keeping up with mortgage payments while trying to sell your home? We understand how stressful it can be when you’re caught between properties, facing the prospect of making two mortgage payments or dealing with buyers who pull out at the last minute.
At Property Saviour, we’ve helped countless homeowners just like you escape this financial pressure through our guaranteed house buying service. We will buy any house in any condition.
We can purchase your property in as little as 10 days, meaning you’ll stop making mortgage payments on your old home much sooner than with a traditional sale. No more lying awake at night wondering how you’ll manage those payments if your sale drags on for months. And unlike typical buyers, once we make an offer, we stand by it – no last-minute disappointments or chain collapses.
Why not give yourself peace of mind today? A quick call with our friendly team could be the first step toward freeing yourself from those unwanted mortgage payments and moving forward with your life. We’re real people who genuinely care about helping you find a solution that works for your circumstances.
Request a callback now, and let’s have an honest conversation about how we can help you move on without the financial strain of your current property hanging over you.
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