A Consent to Let Mortgage is a specialized type of mortgage that allows you to rent out your property temporarily without needing to switch to a Buy-to-Let mortgage. This type of arrangement is often used by homeowners who need to move temporarily for work, personal reasons, or want to rent out their home for a while but plan to return.
​
Consent to Let mortgages are typically offered by the original lender (the lender who provided your residential mortgage), and it's essential to seek their approval before renting out the property, as doing so without permission could breach your mortgage agreement and result in penalties or repossession.
​
We assist homeowners secure Consent to Let approval or explore suitable options to transition into Buy-to-Let mortgages, ensuring you can make the most of your property and your financial goals.
​
Key Considerations for Consent to Let Mortgages
​
1. Temporary Nature of Renting
Consent to Let is usually given on a temporary basis. This means the lender expects the arrangement to be short-term. The exact duration can vary from lender to lender but typically lasts between 6 months and 12 months, after which you’ll either need to return to living in the property or apply for a Buy-to-Let mortgage if you intend to continue renting it out.
-
Short-Term Rental: Consent to Let is generally not intended for long-term renting. If you plan to rent out the property for several years, the lender may ask you to switch to a Buy-to-Let mortgage.
​
2. Lender Approval is Required
To rent out your home, you must have consent from your mortgage lender. Without this, you could be in breach of your mortgage agreement, which can result in penalties or even the repossession of your property.
If you’re considering renting your home out, it’s important to contact your lender in advance and get their explicit approval. Many lenders will require you to demonstrate the reason for renting out the property (e.g., job relocation, financial difficulties) and might have specific criteria for granting consent.
​
3. Rental Income Considerations
While a Consent to Let mortgage allows you to rent out your property, lenders may still assess your affordability and ensure the property can cover your mortgage payments, especially if you're renting it out in the future.
However, unlike Buy-to-Let mortgages, lenders generally do not assess your rental income as a primary factor when approving a Consent to Let application. The focus is more on your ability to make the mortgage payments without relying solely on rental income.
-
Affordability Checks: Some lenders may require you to demonstrate that you can afford the mortgage payments, both with and without rental income.
​
4. Impact on Your Current Mortgage
With Consent to Let, your existing mortgage rate and terms typically remain the same. However, some lenders may impose additional conditions, such as a higher interest rate or extra fees for allowing you to rent out the property.
If you are looking for a long-term rental arrangement, you may need to switch to a Buy-to-Let mortgage after receiving consent, as lenders may not allow extended rental terms under a standard residential mortgage.
​
5. Eligibility Requirements for Consent to Let
Lenders have different eligibility criteria for granting Consent to Let. Common factors considered include:
-
Your Relationship with the Lender: Lenders are more likely to grant consent to existing customers with a good payment history.
-
Length of Time in Property: Some lenders may require you to have owned and lived in the property for a certain period before granting consent.
-
Reason for Renting: You may need to provide evidence of why you're renting out the property (e.g., a work relocation or change in personal circumstances).
-
Property Type: Lenders may have restrictions on the type of property that can be rented out, especially for properties in need of significant repairs or in areas with low rental demand.
​
6. Moving to a Buy-to-Let Mortgage
If you intend to rent out the property for more than the agreed-upon temporary period, you’ll need to apply for a Buy-to-Let mortgage. This type of mortgage is specifically designed for properties that will be rented out for an extended period.
To transition to a Buy-to-Let mortgage, you may be required to meet stricter lending criteria, including demonstrating the rental income potential of the property and having a larger deposit (usually at least 25% of the property's value).
​
How Artillium Finance Partners Can Help:
At Artillium Finance Partners, we specialize in Consent to Let mortgages and can provide you with expert guidance to help you rent out your property while staying within the bounds of your mortgage agreement. Here's how we can assist you:
​
1. Lender Communication
We can act as an intermediary between you and your lender, ensuring your request for Consent to Let is handled efficiently. We’ll guide you through the process of requesting approval and ensure you provide the necessary documentation and information to meet your lender’s criteria.
​
2. Exploring Other Options
If your lender refuses to grant Consent to Let, we can help explore Buy-to-Let mortgage options. We can assist in identifying lenders that offer more favorable terms for landlords or investors, especially if you plan to rent the property out long-term.
​
3. Assessing Affordability
If you're concerned about whether you can afford your mortgage payments both with and without rental income, we can conduct a comprehensive affordability check to ensure you're making the right financial decision.
​
4. Tailored Advice
Each Consent to Let request is unique. We provide personalized advice based on your specific circumstances, ensuring you understand the terms and conditions associated with renting out your property and the potential costs or benefits.
​
5. Compliance with Regulations
We ensure that your rental property complies with all necessary regulations, including any requirements for landlord insurance, gas safety certificates, and local council requirements.
​
Why Choose Artillium Finance Partners?
​
-
Expert Knowledge: We have extensive experience working with homeowners and landlords, understanding the nuances of Consent to Let mortgages.
-
Full Market Access: With access to the entire market, we can find the most suitable lender for your needs, ensuring competitive terms and rates.
-
Stress-Free Process: From applying for consent to switching to a Buy-to-Let mortgage, we make the process straightforward and hassle-free.
-
Personalized Service: We take the time to understand your situation and provide advice tailored to your financial goals.
​
Next Steps:
​
If you're looking to rent out your property with the approval of your lender, Artillium Finance Partners can guide you through the Consent to Let process. Book a Free Consultation with us today to learn more about your options and how we can assist you in achieving your property goals.