Consent to let
Consent to let is formal permission from a mortgage lender allowing a homeowner to rent out a residential property while retaining their existing residential mortgage. Standard residential mortgage conditions require the borrower to occupy the property as their main home. Letting without the lender's permission breaches those conditions, which can result in the lender demanding immediate repayment, imposing a higher interest rate, or, in serious cases, treating the arrangement as mortgage fraud.
The government's guidance on renting out property sets out the landlord obligations that apply once a property is let, regardless of what type of mortgage is in place.
When consent to let is needed
Consent to let is sought by homeowners who need to let their property temporarily rather than permanently, typically because they are relocating for work, moving in with a partner, taking an extended period abroad, or unable to sell in a slow market. It is not a mortgage product in its own right; it is a temporary modification to an existing residential mortgage, usually granted for a fixed period of six to twenty-four months depending on the lender.
Homeowners who intend to let permanently, or who want to build a rental portfolio, should switch to a buy-to-let mortgage rather than rely on consent to let. Most lenders treat consent to let as a short-term solution and will not renew it indefinitely.
What lenders typically require
Lenders set their own conditions, but common requirements include: that the mortgage is not in arrears; that the mortgage has been held for a minimum period (often six months); that the property will be let on a formal tenancy agreement; and that the borrower has switched to appropriate landlord insurance, which most lenders require as a condition of granting permission.
Many lenders also impose a fee, either a one-off administration charge or a rate uplift on the existing interest rate for the duration of the consent period. HSBC, for example, grants consent to let for up to 27 months. Halifax, Nationwide, and NatWest each have their own consent to let processes; the borrower must contact their specific lender directly, as there is no standard industry-wide procedure.
Homeowners with leasehold properties should also check the terms of their lease. Some leases require the freeholder's written permission to sublet, independently of any lender consent.
Consequences of letting without consent
Letting without the lender's knowledge is a breach of the mortgage contract. Consequences range from a retrospective rate increase to being required to repay the mortgage in full. Where a lender can demonstrate that the borrower knowingly misrepresented their intentions, for example, by claiming to be owner-occupying whilst letting, this may be treated as mortgage fraud, which carries criminal consequences.
From working with landlords across the UK, we know that accidental landlords, homeowners who let their property without initially planning to, are the group most at risk of overlooking this requirement. If the property is being let while on a residential mortgage, contact the lender before placing the first tenant.
What happens when consent to let expires
Once the consent period ends, the lender will normally expect the borrower either to return to owner-occupation or to remortgage to a buy-to-let product. Continuing to let without renewed consent after the agreed period expires carries the same risks as letting without initial consent.
Once consent to let is in place, August's compliance checklist helps accidental landlords track the safety certificates and landlord obligations that apply from day one of the tenancy.
For a broader guide to what becoming an accidental landlord involves, see our accidental landlord checklist.
Frequently asked questions
Do I need consent to let if I already have a residential mortgage?
Yes. Standard residential mortgage conditions require owner-occupation. Letting the property without the lender's permission, even for a short period, breaches those conditions. Contact your lender before signing a tenancy agreement to confirm whether consent to let is available and what conditions apply.
What is the difference between consent to let and a buy-to-let mortgage?
Consent to let is a temporary modification to an existing residential mortgage, allowing a homeowner to let for a fixed period (typically six to twenty-four months) without switching products. A buy-to-let mortgage is a purpose-built mortgage for landlords intending to let long-term. Buy-to-let mortgages have different eligibility criteria, higher interest rates, and larger deposit requirements, but they are the appropriate product for anyone planning to be a landlord beyond a short-term arrangement.
How much does consent to let cost?
Costs vary by lender. Some charge a one-off administration fee (Leeds Building Society, for example, charges £85). Others apply a rate uplift to the existing mortgage interest rate for the consent period. A small number of lenders grant consent at no additional charge. The borrower should also budget for the additional cost of landlord insurance, which most lenders require before granting consent.
What are valid reasons for consent to let?
Lenders typically accept:
work relocation (temporary or overseas);
an inability to sell the property in a falling or slow market;
moving in with a partner without being ready to sell;
caring for a relative requiring the borrower to live elsewhere; or
an extended period of travel or study abroad.
A lender is unlikely to grant consent if the primary purpose is to generate rental income on a permanent basis; the correct product for that intention is a buy-to-let mortgage.
