Consent to let is a temporary arrangement where your residential mortgage lender agrees to let you rent out your property. Residential mortgages include a condition that you live in the property as your main home, so letting it out without permission would be a breach of your mortgage terms.
Lenders may grant consent to let in circumstances where you need to move but cannot sell — for example, if you are relocating for work, moving in with a partner, or struggling to sell in a slow market. It is typically granted for a fixed period, often 12 months at a time, and the lender may charge a small fee or increase your interest rate slightly.
Consent to let is different from a buy-to-let mortgage. It is a temporary concession on your existing residential mortgage, not a product switch. If you plan to let the property long-term, your lender will usually require you to remortgage onto a buy-to-let product instead.
Not all lenders grant consent to let, and some apply conditions such as requiring you to have owned the property for a minimum period first. Always apply before letting the property — renting out your home without consent is a breach of your mortgage terms and could result in the lender demanding immediate repayment of the full loan.
Fiona is relocating from Birmingham to Edinburgh for a two-year work contract. She cannot sell her Birmingham flat quickly, so she contacts her mortgage lender and is granted consent to let for 12 months, renewable annually. Her lender charges a one-off administration fee of £95 and adds 0.25% to her interest rate. She lets the flat to a tenant while continuing to pay her residential mortgage.
Key Points
- Consent to let is temporary permission to rent out a property on a residential mortgage
- It is typically granted for 12 months at a time and may be renewable
- The lender may charge a fee or slightly increase your interest rate
- Letting without consent is a breach of your mortgage terms and has serious consequences
- For long-term letting, you will usually need to switch to a buy-to-let mortgage