Can you get a mortgage on a fire-damaged house?

Rarely in its damaged state. Most mainstream lenders require the property to be habitable and repaired, which is why buyers at this stage are usually cash purchasers or developers.

Should I repair before selling?

Where the insurance settles the works and you can manage the project, repairing usually produces a materially better net figure. Where it does not, an as-is sale is a legitimate option.

Do I have to tell buyers about the fire?

The Home Report will record the condition and your solicitor will deal with enquiries. Concealing known damage causes far bigger problems than disclosing it.

Fire damage

Can I sell a fire-damaged house?

Yes — but the insurance position usually decides the order of events.

The short answer

A fire-damaged property can be sold in its damaged state, but ordinary lending is usually unavailable until it is repaired and certified, so the buyer pool is mostly cash purchasers and developers. Whether to repair first or sell as-is normally turns on the insurance settlement: a claim paid on a reinstatement basis may not transfer to a buyer, so settle the claim position with your insurer before agreeing a sale.

What this means

Insurers usually settle on a reinstatement basis, meaning they pay for repairs actually carried out. Selling before the work is done can reduce what is payable.

A surveyor's Home Report will record the damage. Buyers price for it, and they price cautiously because unseen structural and smoke damage is common.

In a tenement, fire damage frequently affects common parts. Repairs then involve the other owners and the title's common-repairs provisions.

Your possible options

These are possibilities to consider, not recommendations. Which of them fits depends on your own circumstances.

Repair using the insurance settlement, then sell normally
Usually the highest net figure. The property returns to the mainstream market with mortgageable buyers.
Specialist advice: Keep the insurer involved at every stage so the claim is not prejudiced.
Sell as-is to a cash buyer or developer
Fast and certain, at a discount that reflects the works risk. Suits owners who cannot manage a rebuild.
Specialist advice: Check with the insurer whether selling affects the claim before you commit.
Assign or settle the claim first
In some cases the claim can be settled on a cash basis before sale. What is possible depends on the policy.
Specialist advice: Policy wording and the loss adjuster determine this.
Sell the site value
Where damage is severe, the value may be in the plot and the existing consents rather than the building.
Specialist advice: Planning advice on what could be rebuilt.

What should I do first?

Tell the insurer you are considering selling before you market.
Get the loss adjuster's report and the schedule of works in writing.
Have the structure assessed by a chartered surveyor or structural engineer.
Make the property secure and check the policy's unoccupancy conditions.
In a tenement, establish which repairs are common and who is liable.
Compare repaired value less works cost against a realistic as-is offer.

You may need specialist advice

Lothian Property publishes property information. It is not a law firm, lender, financial adviser or estate agent, and the professionals below are independent of us.

Chartered surveyor: A RICS surveyor prepares the Home Report and can assess condition, defects and repair costs.
Conveyancing solicitor: In Scotland a solicitor normally handles missives, title and settlement, and often the marketing too.
Scottish solicitor: Scots property law differs from England and Wales. A solicitor regulated by the Law Society of Scotland can advise on your specific position.

What to do next

Understand your property position first

Tell us about the property and what has changed. We will set out what the information says, with no obligation to sell and no pressure to decide anything today.

Request a Property Review Understand My Property Options

Common questions

Can you get a mortgage on a fire-damaged house?: Rarely in its damaged state. Most mainstream lenders require the property to be habitable and repaired, which is why buyers at this stage are usually cash purchasers or developers.
Should I repair before selling?: Where the insurance settles the works and you can manage the project, repairing usually produces a materially better net figure. Where it does not, an as-is sale is a legitimate option.
Do I have to tell buyers about the fire?: The Home Report will record the condition and your solicitor will deal with enquiries. Concealing known damage causes far bigger problems than disclosing it.

Sources

RICS — find a chartered surveyor — professional body
Law Society of Scotland — find a solicitor — professional body
Scottish Government — buying and selling a home — government
Citizens Advice Scotland — charity

Related situations and guides

About Lothian Property

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Lothian Property is an independent property information and introduction service. We are not an estate agency. We help homeowners understand their property, their options and their local market, and — where appropriate and only with your permission — introduce them to independent estate agents and other property professionals who can assist.

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Prepared by Lothian Property. Information last reviewed 2026-09-04; next review due 2027-03-04. General property information for Scotland, not legal, tax or financial advice. Editorial policy.