Consent to let: letting your mortgaged home

If you own the home you live in and want to rent it out, most mortgage agreements do not allow it without your lender's consent. Consent to let is that permission. It is a formal agreement from your lender that lets you rent your home on a short-term basis, usually for a set period, while you keep your existing residential mortgage rather than moving to a buy to let deal¹.

It is not free and it is not automatic. Lenders charge for it, and the amounts vary widely: one building society charges £85 per consent to let agreement, another lender charges £295, and a third charges £60³. Some lenders instead apply a slightly higher interest rate, or a fee plus a higher rate⁶. Your lender can refuse your application, and if it accepts, it can charge you⁸.

The rules matter because the alternative is a breach of your mortgage terms. Renting your home without permission may break your mortgage rules, and a lender can repossess a property where the borrower rents it out without permission⁹. Consent to let is the route that keeps the arrangement within your mortgage terms, but it comes with conditions on how long you can let, who you can let to, and what you can change while tenants are in.

What consent to let is and when you need it

Consent to let is permission from your mortgage lender to rent out the property that secures your residential mortgage. Your mortgage terms and conditions explain that you need consent from your lender to let your property before the let starts, and breach of those conditions could lead to further action being taken¹. It is not the same as a buy to let mortgage: you keep the residential deal you already have, and the lender adds its permission on top.

You need it whenever you plan to let the whole property, and the trigger points vary by lender. One lender requires consent for letting exceeding 90 occupied nights in any 12 month period¹¹. Another says that if you want to rent out your property for longer than 90 days, you will need to apply for consent to let⁸. A third states plainly that if your property is mortgaged with it, you must obtain its consent before letting out your property¹³.

Lenders tend to consider consent to let for recognisable life events rather than as a general landlord product. One lender lists the situations it may consider: you have moved in with a partner but wish to keep your existing home, you are travelling for an extended period, you have accommodation with your new employment, you are struggling to sell your property, or your circumstances have changed unexpectedly¹³. If your reason is simply that you want to run a rental business, a buy to let mortgage is the more usual route.

There is a leasehold layer too. If your home is a leasehold flat, the terms of your lease may require the consent of the landlord and of any superior landlord before any letting agreement is entered into¹⁴. Shared owners face a similar rule: if the leaseholder assigns or transfers the lease before staircasing to 100%, the consent of the landlord must be obtained¹⁵.

What consent to let costs: fees from £60 to £295 or a higher rate

There is no single price. Lenders set their own consent to let charges, and the published figures range from £60 to £295 per agreement. One building society charges £85 per consent to let agreement, which allows you to let your property for a set period under your mortgage³. Another lender charges a £295 standard fee⁴. A third charges £60 per consent to let agreement on non buy to let mortgages⁵.

Some lenders do not charge a flat fee at all. One states that consent to let may involve a fee or a slightly higher interest rate⁶. Another notes that you may need permission from your mortgage lender and that your mortgage interest may increase¹⁶. A further source says some lenders add an extra percentage on to the mortgage interest rate when you rent out your house with your lender's permission¹⁷. A higher rate costs you every month for as long as it applies, so a fee and a rate rise are not equivalent, and the cheaper-looking option depends on how long you let.

The fee is usually charged per consent to let agreement, not per year, but the agreement itself is time-limited. One lender states that the consent to let period on your property is temporary for up to 12 months². When that period ends you may need to reapply, and a fresh fee may apply. Ask your lender what happens at the end of the period before you start.

Rules while your home is let: tenancies, insurance and what you cannot change

Once consent is granted, the property is still your home on paper but it is someone else's home in practice, and the rules reflect that. Lenders commonly restrict what you can do to the mortgage while the property is let. One lender states that once your property is let, you cannot switch your mortgage deal, take additional borrowing, complete a term change, add or remove a borrower, or change your repayment method¹². Another says the same, with a possible exception for borrowing for home improvements or repairs⁷. If you were planning to remortgage or switch to a new deal, do it before the let begins.

The tenancy itself has to meet your lender's requirements. One lender requires the tenancy agreement to be arranged on an Assured Shorthold basis for a period of not less than 6 months and not more than 12 months, and if you are moving overseas a managing agent must be used to oversee the property¹⁸. That is a lender's condition, not a general legal rule, but breaching it can put your consent at risk.

Insurance is a separate obligation and one people often miss. One lender states you must tell your buildings and contents insurer, as the letting may change your cover⁹. Standard home insurance is usually priced around you living in the property, so a let can affect whether a claim is paid. If you rent out a room rather than the whole home, you might need to tell your insurer and your premiums could increase¹⁹.

As a landlord you also take on duties towards tenants that sit outside the mortgage. Your tenants have rights that do not depend on your lender's consent, including protection from fees your landlord is not allowed to charge: a landlord is not allowed to make a tenant pay for a loan, pay for insurance or start a contract for a service as part of the tenancy²⁰. If you let to a lodger or sub-tenant without your lender's permission, that person will not have many rights, and if the lender evicts the person they are living with, they will have to leave too²¹.

How to apply for consent to let, and how to end it

The process is usually a form and a wait. One lender asks borrowers to download and complete the Consent to Let form and return it by email, branch or post¹¹. Another says applicants will need to complete an application form²². One lender asks borrowers to submit the request a month before they plan on letting the property¹¹. That timing matters: you cannot start the let before consent is in place, and a tenancy you have already signed is harder to unwind.

A typical sequence looks like this:

1. Check your mortgage terms and your lease, if you have one, for what consent is required¹.
2. Contact your lender and ask what it needs, what it charges and how long consent lasts¹¹.
3. Complete and return the consent to let form, allowing at least a month before the let is due to start¹¹.
4. Tell your buildings and contents insurer and confirm your cover still works for a let property⁹.
5. Put the tenancy agreement in place on the basis your lender requires, for example an Assured Shorthold tenancy of 6 to 12 months¹⁸.

Ending consent to let is usually a matter of the period running out or your circumstances changing back. Because consent is temporary, one lender caps it at up to 12 months². If you want to rent the home for longer, you will need to apply for a buy to let mortgage⁷. If you want to move back in, tell your lender and check whether anything needs to be reset, particularly if your deal was changed or a higher rate applied.

If your circumstances change in a way that affects the mortgage, such as a separation, the lender's position matters. Even if both parties agree or a court orders one person to take over the mortgage, the lender is not obliged to release the other person from it, and lenders apply their own affordability criteria and can refuse²³. That is worth knowing before you assume a let will solve a joint mortgage problem.

Consent to let or buy to let: which fits how long you want to rent

The dividing line is time. Consent to let is designed for the short term: through consent to let, you can apply to rent out your home on a short-term basis, and long-term letting may require a buy to let mortgage with its own eligibility criteria and application². One lender puts it directly: if you want to rent your home for longer, you will need to apply for a buy to let mortgage⁷.

There is a middle option if your plan is to move rather than to become a landlord. A let to buy arrangement involves remortgaging your current home onto a buy to let mortgage and using the equity released to buy a new property²⁴. That suits someone who wants to keep the first home as an investment and buy a second to live in, rather than someone who needs a short-term fix while a sale completes.

Which fits depends on your circumstances, not on which is cheaper in the abstract. If you are going abroad for a year, or waiting for a slow property market to turn, consent to let keeps you on your existing deal and avoids the cost of arranging a new mortgage. If you intend to rent the property out indefinitely, a buy to let mortgage is the structure lenders expect, and staying on consent to let past its period may not be an option.

Where the protection stops

Consent to let protects you from breaching your mortgage terms, and that is roughly where its protection ends. It does not make you a regulated landlord with special safeguards, and it does not stop your lender taking action if you break the conditions attached to it. A lender can repossess a property where the borrower rents it out without permission¹⁰. If you let without consent and your lender repossesses, the tenants living there have limited protection: lenders must send a notice to the property before the repossession hearing, addressed to the tenant or the occupier, within five days of starting the court proceedings²⁵.

If you are struggling with the mortgage and considering letting as a way out, the order of events matters. If the money from a sale is not likely to pay off your mortgage, you normally need your lender's permission to sell your home, and you may need your lender's agreement if you have negative equity²⁶. Renting the property out with permission is one option, but some lenders add an extra percentage on to the mortgage interest rate, which can make a difficult position harder¹⁷.

Free, impartial help exists if the mortgage becomes unaffordable. MoneyHelper offers guidance on dividing the family home and mortgage during divorce or dissolution²³. Shelter England and Shelter Cymru publish advice on selling voluntarily and on repossession by a landlord's lender²⁶. Business Debtline covers rent arrears in England and Wales²⁷. Independent Age advises on problems paying your mortgage¹⁶. None of these will make a lender grant consent, but they can help you work out whether letting is the right move at all.