Renting out your property

Consent to let 

Consent to let is when you ask a lender for their permission to rent your home on a temporary basis while continuing to pay a residential mortgage. Consent to let is usually around 12 months. If you want to rent your home longer term, you’ll need to apply for a buy-to-let mortgage.  

Emily’s story 

Emily owns a 2-bedroom terraced house. She has a fixed mortgage product until 2026. She has decided she wants to travel for 9 months. But she needs to rent her home out to pay the mortgage while she is travelling.  
 

Emily chats to one of PBS mortgage consultants Ben who explains that under consent to let she can rent her home out for 12 months. Emily meets all eligibility criteria so can follow the correct process for renting her home and then travels. She returns 9 months later, informing PBS of her return and providing an updated council tax bill. She continues her residential mortgage. 
 

Eligibility 

You must meet the below criteria to apply to rent out your home: 

• a tenancy agreement. 
• a contract between you and your tenants for a minimum of 6 months: 
  • England and Wales: Shorthold Tenancy Agreement (AST)  
  • Scotland: either short assured tenancy or a private residential tenancy.  
• plan to rent for 12 months or less. 
• at least 6 months payments on your residential mortgage (not applicable 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, you will need to post or email a copy of your council tax bill. 

The council tax bill will need to show that it has been changed back to the mortgage holder's name. We can then update your details.

Other considerations 

Paying Tax 

You’ll have to pay tax on any profit you make from renting out your home. This means your taxable income could increase and you may move into a higher tax band. You can find more information on this by visiting Gov.UK. You may also want to 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 (may be considered for 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.