Renting out your property

Consent to let 

Consent to let means asking your lender's permission to rent your home temporarily while you continue paying your residential mortgage. Consent to let usually lasts around 12 months. If you want to rent your home for longer, you’ll need to apply for a buy to let mortgage.  
 

Emily’s story

Emily owns a 2-bedroom terraced house and has a fixed mortgage until 2026. She's decided to travel to South America for 9 months but needs to rent out her home to cover her mortgage payments while she's travelling.  
 
Emily chats with Ben, one of Principality's mortgage consultants. Ben explains that under consent to let she may be able to rent her home out for 12 months. Emily meets all the eligibility criteria, so she follows the proper process for renting her home out, and then sets off on her travels.

After 9 months, Emily returns home, informs Principality, and provides an updated council tax bill. Then she continues her residential mortgage as normal.

This story is just an example and may not apply to every situation. Please call us for a chat about whether consent to let is right for you. 

Eligibility for consent to let

To apply for consent to let, you'll need: 

• A tenancy agreement; a contract between you and your tenants for at least six months: 
  • In England and Wales an Assured Shorthold Tenancy Agreement (AST) 
• A plan to rent for 12 months or less. 
• At least six months payments on your residential mortgage (this doesn't apply if you’re a member of the British Armed Forces or Clergy).

Fees and charges 

While you’re renting your home, we’ll add 1% to your current mortgage interest rate - unless you’re a member of the British Armed Forces or Clergy. 
 

If there are changes to the additional letting interest rate or our tariff of charges, we'll contact you. 
 

Ending consent to let 

To end your letting agreement, please send us a copy of your council tax bill showing that the property has been switched back to the mortgage holder's name. Once we receive this, we can update your details.

Other considerations 

Paying Tax 

You’ll have to pay tax on any profit you make from renting out your home. This could increase your taxable income and possibly move you into a higher tax band. For more details, visit Gov.UK or speak with an independent tax adviser. 

Changes to your mortgage 

Once your property is rented out, you won’t be able to: 

• Switch your mortgage deal. 
• Apply to borrow more (except possibly for home improvements or repairs).
• Complete a term change 
• Add or remove a borrower 

Home insurance 

You’ll need to tell your home insurance provider that you’re renting out your home. You may need to switch your insurance to ensure you are fully covered to let out your property.