Can I Rent Out My House on a Normal Mortgage? (Consent to Let)
Consent to let is written permission from your lender to rent out a home you bought on a residential mortgage. It keeps your existing mortgage in place instead of forcing you onto a buy-to-let deal.
It is designed for temporary situations — a job posting, moving in with a partner, a house that will not sell — and is normally granted for six to twenty-four months. Most lenders want to see reasonable equity, often around 25%, and may add a small rate premium or a fee.
Letting without it breaches your mortgage terms. Lenders do find out, and the consequences run from an imposed rate rise to demanding the loan back in full.
At a glance
- What it is
- Lender permission to let
- Typical minimum equity
- Around 25%
- Usual duration
- 6–24 months
- Longer-term option
- Buy-to-let mortgage
Key Takeaways
- Consent to let is a written formal agreement between you and your mortgage lender that allows you to rent out your property while keeping your residential mortgage.
- Renting out your property without obtaining consent to let can result in breach of mortgage terms, financial penalties, or repossession.
- Applying for consent to let is advisable in situations such as temporary relocation, waiting for a property sale, in the process of switching to a buy-to-let mortgage, or having a fixed-term mortgage.
- The process of applying for consent to let involves contacting your lender, providing supporting documents, paying any fees, and awaiting approval. Eligibility criteria include payment history, equity, loan-to-value ratio, length of mortgage term, income, and type of mortgage and property.
Can I rent out my house on a normal mortgage?
Not without asking your lender first. A residential mortgage is priced on the basis that you live in the property, and almost every one contains a term saying you must not let it out without permission.
What you need is consent to let — the lender's written permission to rent out a home you have a residential mortgage on. It is usually granted for 6 to 24 months, often carries a fee or a small rate increase, and typically needs around 25% equity.
Renting it out without asking is a breach of your mortgage terms. In practice lenders rarely repossess over it, but they can put the loan onto a higher buy-to-let rate, demand repayment, or refuse a future application — and your buildings insurance will very likely be void the moment the property is let, because a residential policy does not cover a tenanted home.
What is Consent to Let?
Consent to let is a written formal agreement between you, the homeowner, and your mortgage lender that allows you to rent out your property while keeping your existing residential mortgage in place.
It is a temporary arrangement that grants you permission to become a landlord without the need to switch to a buy-to-let mortgage.
Why is Consent to Let Necessary?
Residential mortgages are designed for homeowners who intend to live in the property they purchase. Renting out your property without obtaining consent to let would put you in breach of your mortgage terms and could result in financial penalties or even repossession.
Consent to let ensures that you comply with your mortgage agreement while still being able to generate rental income.
If you let your property out without consent, you are technically committing mortgage fraud, so it's always worth having the conversation with your lender first.
It works the same way in reverse. Moving into a property you bought on a buy-to-let mortgage is occupancy fraud, and lenders take it just as seriously — the loan can be called in and your insurance can be void.
When Should You Apply for Consent to Let?
There are various situations where applying for consent to let is advisable. Here are a few common scenarios:
Temporary Relocation
If you need to move away for a short period — a work posting, a move in with a partner, or caring for a relative — consent to let lets you rent the home out rather than leave it empty. Most lenders grant it for 6 to 12 months at a time and will renew if the reason still holds. It also protects your insurance, because an empty property left unoccupied for more than 30 to 60 days usually falls outside a standard buildings policy too.
Waiting for Property Sale
If you're in the process of selling your home but haven't found a buyer yet, consent to let allows you to rent out the property while you wait for a sale. Another option would be to consider a bridging loan.
Buy-to-Let Mortgage Process
If you intend to move to a buy-to-let mortgage but have not completed the switch, consent to let bridges the gap so you can start letting immediately. A buy-to-let remortgage typically takes 4 to 8 weeks, and lenders usually want the property already let or a signed tenancy agreement in place — so consent first, remortgage second, is the normal order.
Fixed-Term Mortgage
If you are locked into a fixed rate, leaving it early normally triggers an early repayment charge — commonly 1% to 5% of the balance, which on a £200,000 mortgage is £2,000 to £10,000. Consent to let sits on top of your existing deal instead of replacing it, so you keep the rate and avoid the charge.
How to Apply for Consent to Let
The process of applying for consent to let varies depending on the lender. However, there are some general steps you can follow:
Contact Your Lender
Contact your lender before a tenant moves in, not after. Most handle it by phone or an online form, and decisions commonly take 5 to 10 working days. Expect a one-off fee of roughly £100 to £300, or in some cases a rate uplift of around 0.5% to 1% for the period the consent runs.
Provide Supporting Documents
Your lender may require supporting documents such as proof of your reason for letting, tenancy agreements, travel documents, or employment contracts. Be prepared to provide any necessary documentation to support your application.
Pay Any Fees
Some lenders charge fees for granting consent to let. These can vary and may be a one-time flat fee or an increase in your interest rate.
Confirm the fees with your lender and be prepared to pay them if applicable. For example, Lloyds bank add an additional 0.5% to your mortgage interest rate during the time that you have consent to let.
Await Approval
Once you've submitted your application and supporting documents, you'll need to wait for your lender's decision. The timeframe for approval can vary, so it's important to plan ahead and apply in advance of your intended rental start date.
Eligibility for Consent to Let
Each lender has its own eligibility criteria for granting consent to let. While these criteria may vary, here are some common factors lenders consider:
Payment History
Lenders typically look at your mortgage payment history to assess your financial responsibility. If you have a history of missed payments or arrears, it may impact your eligibility for consent to let.
Equity and Loan-to-Value Ratio
Lenders may require a minimum level of equity in your property, typically around 25%, to grant consent to let. Additionally, they may consider the loan-to-value ratio to determine the risk associated with the arrangement.
Length of Mortgage Term
Some lenders require you to have been with them for a minimum period, usually between 6 to 12 months, before granting consent to let.
Income and Affordability
Lenders may assess your income to ensure that the rental income from your property is sufficient to cover your mortgage payments. They may also have minimum income requirements for granting consent to let.
Type of Mortgage and Property
Certain types of mortgages, such as Help to Buy or Shared Ownership, may have restrictions on letting out the property. Leasehold properties may also require additional consent from the freeholder or managing agent.
It's important to note that meeting the eligibility criteria does not guarantee approval, as each application is assessed on a case-by-case basis.
Advantages of Consent to Let
Obtaining consent to let can offer several advantages for homeowners who need to rent out their property temporarily:
- Maintain Your Existing Mortgage: Consent to let allows you to keep your residential mortgage in place, avoiding the need to switch to a buy-to-let mortgage.
- Generate Rental Income: Renting out your property can provide you with a source of income to cover your mortgage payments or other expenses while you're away or waiting for a property sale.
- Flexibility and Test Period: Consent to let gives you the flexibility to rent out your property temporarily without committing to becoming a permanent landlord. It allows you to test the waters and assess whether being a landlord is the right long-term decision for you.
- Avoid Early Repayment Charges: If you have a fixed-term mortgage, obtaining consent to let can enable you to rent out your property without incurring early repayment charges, which can save you money.
Disadvantages of Consent to Let
While consent to let offers flexibility and benefits, it's important to consider the potential drawbacks:
- Additional Responsibilities: As a landlord, you'll have additional responsibilities, including property maintenance, ensuring compliance with regulations, and managing tenant relationships.
- Tenant Vacancy and Income Stability: There may be periods of time when your property is vacant and not generating rental income, which means you'll still need to cover your mortgage payments.
- Costs and Fees: Obtaining consent to let may involve fees, such as application fees or an increased interest rate. These costs should be taken into account when assessing the financial viability of renting out your property.
- Property Wear and Tear: Renters may not treat your property with the same care and attention as you would, potentially resulting in wear and tear that may require repairs or maintenance.
What Happens When Consent to Let Ends?
Consent to let agreements have a specified duration, typically ranging from 6 to 24 months, depending on the lender. When the consent period comes to an end, you have several options:
Contact Your Lender
If you want to keep letting, ask your lender to extend before the current permission lapses. Most will renew, though each extension is reassessed and some lenders cap the total at 24 to 36 months before requiring you to move to a buy-to-let mortgage. Letting on expired consent leaves you in the same position as never having asked.
Consider Buy-to-Let Mortgage
If you have enjoyed being a landlord and want to continue renting out your property, you may decide to switch to a buy-to-let mortgage. This would involve remortgaging your property under different terms and conditions.
For more information on how Buy to Let differs from Consent to Let, read our insight: Is Consent to Let Better than Buy-To-Let?
Evaluate Your Options
Before making a decision, it's essential to consider the current market conditions, rental demand, and your long-term goals to determine the most suitable course of action.
Can You Get Consent to Let on a Leasehold Property?
Obtaining consent to let on a leasehold property may require additional steps. In addition to obtaining consent from your mortgage lender, you may need to seek permission from the freeholder or managing agent responsible for the leasehold property.
Leasehold agreements often have specific clauses relating to subletting, so it's essential to review your lease agreement and consult with the relevant parties before proceeding.
Consent to Let as an Option
Consent to let is a valuable option for homeowners who need to rent out their property temporarily while keeping their residential mortgage in place. By obtaining consent to let, you can generate rental income, maintain the flexibility to adapt to changing circumstances, and test the waters of becoming a landlord.
However, it's essential to carefully consider the advantages and disadvantages, meet the eligibility criteria, and follow the necessary steps to ensure a smooth and legal rental process.
Remember to consult with your mortgage lender, review your mortgage agreement, and seek any additional permissions required for leasehold properties. With the right approach, consent to let can be a beneficial arrangement that allows you to make the most of your property investment while complying with your mortgage terms.
