If you’re experiencing financial difficulties, you may be
considering selling your home. This is a very challenging decision and needs to
be given some serious thought.

In this two-minute read, we look at some areas to think
about before you decide whether to sell your property or not.

This piece is not meant to offer financial advice. We
recommend speaking to a financial expert before making any big decisions.

Understand your debt

You probably have a mortgage and it’s important to
understand whether selling your home will give you enough money to clear your
debt. Releasing the equity in your property is only helpful if the amount you
owe is less than the value of your home.

There are ‘good’ and ‘bad’ debts to have, and a mortgage –
although a big financial commitment – is often considered a good debt.
This is because your property’s value should increase over time. It is
important to get an accurate valuation of your property to work out how much
you may still owe on the mortgage after sale.

Can you afford to sell your home?

While selling your home is often a final option, you need to
remember there are costs involved. For example, you’ll need to pay legal fees,
estate agent costs, conveyancing costs, and possibly pay for repairs to the
property before sale.

It’s not a simple process and can cost a lot, making your
debt problems more challenging in the short term.

It takes time to sell a property

If you need cash to clear a debt quickly, keep in mind that property
sales can often be a slow process. There are many things to consider first. For
example, is the property ready for sale? Do you need to decorate or make
repairs? What’s the current market like?

Are you sure?

You might be selling with plans to downsize to a more
affordable property, perhaps you’re going to rent or move in with family. Remember,
when you sell a property, it can be hard to get back onto the property ladder
in the future.

We understand that selling due to financial challenges is a
big decision to make and that’s why we encourage people to think very
carefully about it. Mull over the three questions below:

Have you considered all the options?

Have you spoken to your bank about your mortgage payments?

Have you spoken to a financial expert or a debt charity?

They can help you to restructure your debt and give advice
around whether selling your biggest asset is the right move.

If you have any
questions about this topic, please contact us. We treat all enquiries with care
and confidentiality.