Renting out your home
A quick summary
If you don’t have a buy-to-let mortgage, you’ll need to ask for our agreement to rent out your home. This is known as consent to let or consent to lease.
Important to know
If we agree to you renting out your home we'll charge an added rate of 0.5% on top of your existing interest rate and we’ll let you know what the monthly payments will be. If you manage your mortgage using an annual instalment review scheme, air your monthly payment will stay the same until your next review date.
Useful information
How much will it cost?
Use this calculator to give you an idea of how your monthly payments could change
Lets look at the details
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- If we agree for you to rent your home, we’ll automatically do annual checks to see if you can continue for another 12 months. We'll send you a letter nearer the time to let you know.
- You must follow all the laws and rules for renting out your home. Also, see our conditions for renting your home (pdf 124kb) that work alongside your mortgage conditions.
- Your mortgage must be active for at least 6 months to gain our agreement, unless you’re a member of the British Armed Forces, the Diplomatic Service or have tied accommodation.
- The rent must cover your monthly mortgage payments.
- We do not allow multiple tenancies. This is where each tenant signs a separate agreement or has separate facilities such as their own kitchen or both. The maximum number of tenants on 1 tenancy is 5 and all tenants must be together on 1 agreement.
- Renting your home should be temporary. If it’s permanent consider applying for a Buy to Let mortgage.
- You can cancel at any time.
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You don't need our agreement if:
- your mortgage is closed
- you owe us less than £5,000
- your mortgage will be paid off in full in less than 12 months
- your mortgage is Buy to Let
- you’re renting out your home as a holiday let for no more than 16 weeks during the next 12 months.
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If you rent out your home without our agreement, or we reasonably believe you’re doing this:
- we’ll charge an added rate on top of your existing interest rate. This means your monthly payments will be more
- we may charge you extra interest or amounts backdated to when you were, or we think you were renting out your home
- you won’t be able to borrow any more on your mortgage.
If you’ve moved back home, call us. We’ll let you know what evidence we need you to give to us to show you’re living there.
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- All years are 365 days.
- Your interest is worked out monthly.
- Your mortgage is repayment so you pay the balance and interest in your monthly payments.
- Your mortgage is interest only so you pay the interest monthly and then the balance at the end of the term.
- Your current interest rate used is based on what you have told us and there are no upcoming changes to this interest rate.
- There are no other changes that would mean we’d be working out a new monthly payment for you. For example, if you are on an interest rate that tracks the Bank of England Bank Rate and the rate changes, or your current interest rate is coming to an end.
- We round our estimates to the nearest pound (£).
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If you have multiple sub accounts this is where your mortgage is split into different parts. You’ll need to put each part in separately and add them together to get an amount. This is because your sub accounts may have different interest rate or mortgage types, or have different lengths or time left, known as the ‘term’.
Here is an example of how you can use our online calculator to work out your new monthly payment when you have multiple sub accounts. Our example shows a customer with a £126k mortgage which is split into different sub accounts, each with different mortgage type, term and interest rate.
By entering the information for each sub account separately, the calculator adds the 0.5% charge on top of the specific sub account details so you can see the estimated increase for each sub account.
Sub account 1 £70k repayment mortgage with 12 years remaining and a 6% interest rate, a difference of £18 a month.
Sub account 2 £30k repayment mortgage with 15 years remaining and a 7% interest rate, a difference of £8 a month.
Sub account 3 £26k interest only mortgage with 10 years remaining and a 7.74% interest rate, a difference of £11 a month.
Adding the increases for each sub account together gives you an estimate of the total increase in monthly mortgage payments.
Sub 1 £18 + Sub 2 £8 + Sub 3 £11 = £37
Each time your interest rate changes, so will the monthly payment.
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