Consent to Let

Posted on 19 February 2011 by Pras

Which banks allow consent to let for residential mortgage? Is there any specific bank which does not allow that?

Q2 : Is it good to reduce my mortgage in the current climate if I want to rent out the flat in the future?


Apart from a couple of the old Sub Prime lenders all Banks and Building Societies will consider an application for consent to let. That doesn't mean they will all agree to give consent and each case is taken on it's merits. In our experience there does not tend to be an issue if you are having to move away because of work commitments and it is your intention to reoccupy the property in the foreseeable future.

Whether or not it is a good idea to reduce your mortgage prior to renting out your flat will depend on your individual circumstances. In terms of a future letting covering your mortgage payments then in general Lenders will be looking for the rent to exceed the mortgage payment by 130%. For example if your monthly interest payment is £300 then the rental would need to be at least £390 per month.


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.

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