Consent to Let
If you want to let your property while keeping your current residential mortgage, you can ask your lender for consent to let. This is a temporary arrangement — typically granted for six to 12 months — that allows you to rent out the property without switching to a full BTL mortgage.
Not all lenders grant consent to let, and those that do may charge a higher interest rate or a one-off fee. Consent to let is usually intended as a short-term solution, not a permanent arrangement. If you plan to let the property long-term, you will eventually need to switch to a proper buy-to-let mortgage.
Switching to a BTL Mortgage
To formally convert to a buy-to-let, you remortgage onto a BTL product. This can be with your current lender (a product transfer) or a new lender (a full remortgage). The application will be assessed using BTL criteria, with rental income being the primary affordability measure.
You will need to demonstrate that the rental income meets the lender's stress test requirements. A letting agent's rental assessment or existing tenancy agreement provides the evidence needed. If your property is in a strong rental area, this transition should be straightforward.
Financial Implications
Buy-to-let mortgage rates are higher than residential rates, so your monthly payment may increase. You will also need to consider the tax implications of becoming a landlord, including declaring rental income to HMRC and understanding how Section 24 affects your mortgage interest deductibility.
On the positive side, you avoid the stamp duty surcharge that applies to buying a new BTL property, since you already own the home. You also avoid the costs and upheaval of selling and potentially buying elsewhere. If the property is in a strong rental area, the switch can make excellent financial sense.
Practical Considerations
Before letting your property, you need landlord's insurance (standard home insurance does not cover rental properties), gas and electrical safety certificates, an Energy Performance Certificate (EPC) with a rating of E or above, and compliance with right-to-rent checks and deposit protection rules.
You should also inform your buildings insurance provider, your freeholder or management company if the property is leasehold, and your local council for council tax purposes. A letting agent can handle many of these requirements on your behalf if you prefer a hands-off approach.
Important: Your home may be repossessed if you do not keep up repayments on your mortgage. There will be a fee for mortgage advice. The actual rate available will depend on your circumstances. Think carefully before securing other debts against your home.