Can you rent your property with a mortgage?

Many of our clients ask us whether they can rent out their property despite still paying off their mortgage on it. The answer is yes, you can rent your property with an existing mortgage, but you must follow a few simple rules before letting out your unit.

What happens if you don’t tell your mortgage company you wish to rent your property out?

  • You may be in breach of the terms and conditions of your loan (mortgage), so we advise informing your mortgage lender before you rent your property out 
  • They usually have an application process which you will have to complete in order to rent your home with a mortgage

Will renting affect your mortgage?

  • Again – you need to tell your lender
  • Renting does nothing to help you with credit
  • What’s more, there is often a charge to obtain consent to let

Do you need to tell your mortgage company if you rent just a room?

  • Yes – This may be against the terms of your mortgage – Also
  • Don’t forget it can affect buildings and contents insurance as well
  • There is a threshold for needing to inform HM Revenue and Customs

Can you have two residential mortgages in the UK?

  • As many as you like 
  • Might be tough after the first few to get more 
  • The second one will need to have rental agreement

Can you live in your buy to let property temporarily?

  • It isn’t illegal but usually a term of the mortgage agreement that you can’t
  • Generally you need to buy the property outright
  • You many be able to get consent for a short period of time

Can you rent your property on holiday homes sites if I have a mortgage?

What happens if you get caught living in a buy-to-let property?

  • You could end up in deep water with your mortgage company and even be added to the Rogue Landlords Database
  • In some cases this could be seen as fraud and you can be prosecuted.