Can I sell for less than outstanding mortgage?

[Xanadu]

First post so hoping for some advice from wiser heads. I'm selling my house. (Yes I know - not a good time). If the best offer is less than the mortgage outstanding will the lender let me sell? If there's a shortfall e.g. few thousand, do I just get a personal loan to pay it?

Thanks in advance for any insights.

 

[jpd]

In theory, yes but it will depend on amount of outstanding mortgage - you'll need to show that you can repay the outstanding amount

 

[sullie31]

Some Financial institutions are introducing a mortgage product where you can carry your shortfall onto the next property. for example, if you have a property with a mortgage of 100k and you sell for 90k, the 10k shortfall you can carry onto your next purchase. so, if you pay say 130k for the next property, it will really be 140k in the banks eyes as you will be carrying the 10k shortfall from your current property.

If you simply intend to sell and not purchase immediately, you will be liable for the shortfall and you will have to come to some agreement with the bank to repay it. They should be willing to allow you to sell but again it will all be down to the outstanding balance and what means you show to prove you will be able to repay it i.e. not leave the country

 

[liger79]

Its best to get onto your bank now and get any agreement in writing, its over a week since i first contacted my bank and they still havn't decided Who in there should deal with my query as negative equity sales are only starting to become an issue for them lately.
I'm close to losing an offer on my house so dont wait get onto them now.