On an existing mortgage can I legally rent my house out for a year?

wales75

I have an existing mortgage, currently interest only on my mortgage lenders base rate (fixed rate ended a few months ago). I have an opportunity to work abroad for a year so would like to rent out my house. Not to make money, just to keep it occupied and get the mortgage paid through rent.
I've heard of a consent to let. Is this the same as a buy to let mortgage? How straight forward are these to get and what criteria do the mortgage lenders look for? Any advice appreciated.

zappahey

Consent to let is the lender's agreement that you can let the house out for a limited period and does not normally require changing to buy to let. Typically they will charge a fee for this consent.

trini

With the company I work for you can apply for consent to let on your residential mortgage (ie our permission to rent out your property) for either up to 1 year for £100 or permanently for £250. However we have criteria you need to fit USUALLY under 75% LTV and contingency plans in place for any rental void months ie can you afford to make the mortgage payments as well as your own living costs if necessary. Occassionally we will look at extenuating circumstances and grant consent which doesn't fit the usual criteria eg property on market, have to work away for job etc.

Best thing is to ring your lender and ask

Hope this helps

RedSoleShoes

trini wrote: »

With the company I work for you can apply for consent to let on your residential mortgage (ie our permission to rent out your property) for either up to 1 year for £100 or permanently for £250.

Sounds like Northern Rock. Possibly the worst financial company I have ever had to deal with EVER!

ET1976

Consent to let means you are allowed to let the property but keep a residential mortgage - this is different from re-mortgaging to a BTL mortgage.

Different lenders have different criteria. I have CTL on a Nationwide mortgage - all I had to do was write a letter asking for permission. They didn't charge me anything, value the house, change my mortgage rate, or ask any questions about income etc. It couldn't have been simpler. I was well under 50% LTV when I applied though, I don't know if that would have gone in my favour (they didn't do a valuation but I suppose they could have just estimated).

A friend has recently got CTL with Halifax, had to have 75% LTV (I think) and had to pay several hundred to sort it all out plus show that the potential rental income was some % of mortgage interest. Took her ages and was a right pain, but she got it in the end.

Another friend is with C&G, all they had to do was pay £275 fee and they got the CTL even though they are in negative equity.

You need to call or write to your lender.