Yes, potentially.
If you are going travelling outside the UK and want to rent out your home while you are away, the first step is usually to speak to your current mortgage lender about a consent to let arrangement.
This can allow you to let your property to tenants without having to move straight onto a buy-to-let mortgage.
What Is Consent to Let?
Consent to let is where your current residential mortgage lender gives you permission to rent out your home.
It is designed for situations where your circumstances have changed after taking out the mortgage. For example, you may be going abroad for work, travelling for an extended period or temporarily living elsewhere.
Rather than remortgaging immediately, consent to let may give you a more flexible short-term option.
How Is Consent to Let Different from a Buy-to-Let Mortgage?
The main difference is your original intention.
With a buy-to-let mortgage, the property is being bought or remortgaged specifically so it can be rented out. With consent to let, the mortgage started as a standard residential mortgage, and the plan to let the property has come about later because your circumstances have changed.
Lenders are usually more comfortable with this if the reason is genuine and not simply an attempt to access a cheaper residential deal when the real plan was always to let the property.
How Long Can Consent to Let Last?
In many cases, lenders may allow consent to let for up to 12 months, although this can vary depending on the lender and your circumstances.
Some lenders may charge an administration fee or change the interest rate while the property is being let. Others may review the arrangement again after the initial period ends.
This is why it is important to check exactly what your lender is willing to offer and on what terms.
What Will Your Mortgage Lender Consider?
Your lender will usually want to understand why you want to let the property and whether the change is temporary or longer term.
They may look at whether your reason for going abroad is genuine, how long you expect to be away and whether the mortgage has otherwise been conducted well. If the lender believes the intention was always to rent the property out, they may be less willing to agree.
This is also a good point to check any insurance, tax and practical landlord responsibilities that may come with letting the property while you are overseas.
Speak to John Charcol About Letting Out Your Home While Abroad
If you are planning to travel outside the UK and want to understand your mortgage options, consent to let is often the first route to explore.
At John Charcol, our independent mortgage advisers can help you understand whether consent to let is likely to be suitable, what your lender may require and whether a buy-to-let mortgage might need to be considered instead.
To discuss your options in more detail, speak to one of our advisers on 023 8235 2300.
