The short answer is, ‘it depends’. The right answer will rely on a variety of factors.
Almost all, if not all, mortgage lenders will either prohibit you from letting your home to a third party or they’ll set restrictions and have formal requirements around notification, etc.
It’s always difficult to be specific on this subject because each lender and each mortgage will have its own terms relating to this renting out your home and associated issues.
However, in general terms, it’s unlikely that you will be able to let your home without at least first notifying your lender and revising your home insurance policy to allow for the new circumstances. Failure to do either could have serious repercussions.
For example, what if your home has a fire? If the property is not occupied by you and you’ve not notified the insurer, you may well not have the insurance you think you do!
Even if your mortgage lender agrees that you may rent out your home and grants “permission to let” perhaps temporarily, you are still likely to see some changes to the terms and conditions of your mortgage. In addition to revising or replacing your existing home insurance, it’s likely you’ll end up paying more interest too. Most lenders have a different rate for ‘buy to let mortgages’ and just because you originally bought to live won’t generally mean you will be paying the original interest rate from hereon.
Some lenders will simply not allow you to rent out your property. This is a more serious situation as it puts you in a difficult position legally and financially. Letting the property without permission or without notifying the lender may put you in breach of your mortgage and will almost certainly jeopardise your insurance policy.
If you need to change mortgage providers it’s important that you take advice ealy. Mortgage terms will vary as will the lending criteria and buy to let mortgages are different animals to the ‘bog standard’ home buyer’s loan.
Furthermore, there will be punitive tax considerations, especially if you and/or your co-owners are paying tax at the higher marginal rate. There is also the likelihood of penalties for early redemption and the inevitable charges related to remortgaging. Take advice early - and take it from experienced, qualified and registered mortgage advisors.
To speak to a buy to let mortgage adviser contact us on 01628 507477.
Related articles:
Download our Free First Time Buyers Guide
Recent posts
Autumn Budget 2025 Predictions: Mortgage Market
16 days ago
The chancellor will deliver her second budget this autumn. Due to slow economic growth and high inflation, the government need to manage a £40 billion shortfall in public finances. There have already been reports about changes to taxes including income tax and capital gains tax.
Landlords could face a new tax this autumn
19 days ago
The chancellor has advised that landlords could have another tax to pay this autumn as the Treasury decide whether to extend national insurance contributions to rental income.
According to a report in the Guardian, senior ministers have asked Treasury officials to look into a “proportional” property tax to see how it would work as an alternative to the existing stamp duty land tax on owner-occupied homes.
More than a quarter of UK adults in long-term relationships (26%) have reported that despite living together, they keep their finances separate from one another.
There has been a rise in both rent and mortgage costs over the last three years, with renters seeing a greater increase in their monthly payments than those with a mortgaged property.
Delayed Start Mortgages
6 Aug 2025
The new Delayed Start Mortgage launched by Skipton Building Society allows first time buyers to postpone the first three mortgage payments. This product has been designed to help soften the blow of moving in costs for first time buyers.
Green Mortgages | Rewards and Benefits
4 Aug 2025
Mortgage lenders are starting to recognise their “Green” responsibilities when it comes to the different products they offer.
A recent study by Boon Brokers where 1,000 people who had used an estate agent over the last year were surveyed, showed that a whopping 52% said they were pressured into using the estate agents’ in-house mortgage broker.
More information
Trusted by
