Can You Sell Your House with a Mortgage?

Moving house is always exciting. The chance to start anew, expand your social circle and to take some more “me time” are often big reasons why people decide to move.

But if you are an expat living in Dubai, you might be wondering how the local rules apply to you. There is nothing to stop you from moving homes, but if you do not own your current property outright, you may be asking if you can sell your house with a mortgage attached to it.

We aim to answer any questions you may have in this blog.

Can You Sell a Mortgaged Property in Dubai?

Regardless of whether you are a natural citizen or an expat, you can sell a mortgaged property in Dubai. Once the sale goes through, you will have to pay off the remaining balance plus any interest or associated fees. Any money that is left over after the mortgage has been paid into your bank account.


It is important to note that you are not allowed to leave the UAE with debt. If your intention is to return to the UK, you will either have to wait for your property to be sold first or Expat Mortgage can speak with your lender to arrange a payment structure once you are back in Britain.

You can also apply for a non-resident mortgage or an investor mortgage if you want to explore other options over selling. This will allow you to retain your property as long as you continue to make payments from the UK or you have a tenant paying rent to cover the mortgage.

What is the Process for Selling a House with a Mortgage?

Once you have found a buyer, the terms of sale have been signed and a Memorandum of Understanding (MOU) has been issued, the next steps will be carried out:

Apply for a Liability Letter from the Lender

As we mentioned earlier, you will need to redeem your mortgage in full. A liability letter from your bank will outline exactly how much you have left to pay.

Apply for a No Objection Certificate from the Developer

A No Objection Certificate (or NOC for short) is a legal document issued when buying and selling property in the UAE. It states that all services charges and utilities have been paid for, and that the developer has no objection to the sale.

Blocking the Property

The money from the sale will go towards clearing your existing mortgage, and to protect the buyer, it means your property needs to be blocked. This allows the payment to clear your mortgage and prevents you from selling the property to anyone else once your debt has been paid.


To block the property in the buyer’s name, all the relevant parties (you, the buyer, your legal representatives etc.) will need to visit a Dubai Land Department (DLD) registration trustee office.

The DLD will ask for the following documents:

  • A liability letter from your bank
  • Memorandum of Understanding (Also known as Form F, an MOU is the purchase agreement between you and the buyer)
  • NOC from the developer
  • A copy of the title deed
  • A cheque made out to the bank for the exact amount stated on the liability letter
  • A cheque made out to you (for the balance amount of the purchase price)
  • A cheque to the DLD (4% of the transfer fee)
  • The original passport, visa and Emirates ID of both you and the buyer

Clearance Letter and Title Deed

Once your mortgage has been paid off, the bank will issue a clearance letter and the original title deed will be issued in the name of the buyer. 



Conveyancing is the legal transfer of property from one owner to another. A second trip to the DLD office will be needed to finalise the arrangement.

What are the Fees Involved for Selling a Mortgaged Property?

Selling your property comes at a small cost. These are the common fees you are likely to see:

  • Early Settlement: Settling your mortgage early means having to pay a fee. You will be charged either 1% of the outstanding amount of AED 10,000. You will always pay the lowest amount.
  • Blocking Charges: The blocking fee is covered by you and not the buyer. Average charges are between AED 1000 and AED 1500.
  • NOC: The cost for an NOC is also paid for by the seller. Depending on the developer, the amount paid can vary between AED 500 and AED 5000.
  • Mortgage Release: For a standard mortgage, you may pay up to AED 1300. For Islamic mortgages, the fee is around AED 1560.

Selling a House with a Mortgage

Selling a house with a mortgage in Dubai doesn’t have to be difficult, even if you are a British expat. By coming to us, we will handle the mortgage aspects with your lender, saving you a significant headache.

If you decide that selling isn’t the right option, and you want to use the property as an investment, we will ensure a smooth transition from your current mortgage to a new one.

Contact us today to find out more.