Consent to Let
Answered on 7 February 2019 by Nick Morrey
My scenario has changed and the home that I currently live in (currently mortgaged) I want to change to a buy-to-let – what do I need to do?
This will normally depend on why you want to let your property. If you are moving area because of work then it is very possible that your lender will grant you consent to let without insisting you change to a buy-to-let mortgage or charging you an additional interest rate.
However, in any case you need to speak to your current mortgage lender and ask them what they need from you, whether it’s to ask for consent to let. If you do, they will charge you an administration fee, typically around £75 and want a full explanation of why you wish to let the property. There is no guarantee that consent will be granted, the most common reason for this is mortgage arrears and so it is important that you ensure they are kept up to date.
If consent is given, your lender will have requirements regarding the type and length of tenancy you agree. This will probably be a 6 month Assured Shorthold Tenancy and your managing agent will be very familiar with these.
If you find that you can’t change to a buy-to-let because of the rental income doesn’t reach the recommended 125% - I recommend that you speak to your lender and if you can't agree a way forward, speak to an independent mortgage broker about the possibility of remortgaging on to a buy-to-let mortgage using your earned income in addition to the monthly rental.
For more information on buy-to-let – take a look at our handy guide, alternatively – you can talk to one of our expert buy-to-let mortgage advisers on 0344 346 3672.
Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.
We recommend you seek professional advice with regard to any of these topics where appropriate.