How do I rent out with residential mortgage?

Hi there.

I have a new mortgage through the right to buy from the council. I now want to rent out my property which the council allows, my mortgage company says I have to find a tenant first and send a copy of the tenancy agreement to them before they can give me an answer to weather I am allowed to rent the property out. It’s a residential mortgage and not a buy to let. Has anyone had experience with this before or is this common? Does this mean I have to get the Tennant to sign the agreement and let him know theres a possibility he might not be allowed to let the flat ??

Thanks jason

I have done this previously with a residential mortgage. I moved out, informed my lender that I intended to rent it and subsequently had to pay a yearly admin fee to allow for letting it out, Afterwards I found a tenant. Later on I remortgaged to a BTL mortgage.

I would call back and ask for clarification again. I would personally want it formally set up with my lender before finding a tenant. What your lender suggested to you doesn’t make sense and you could find yourself in trouble by signing an AST and subsequently your lender refuses to allow you to let it.


Hi oliver

Thanks for the reply, I took your advice and gave my mortgage provider a call back to double check what they where telling me. This time I got a diffrent explanation to how the process works. I have to pay a fee first, then they will send me a pack out to my address which I have to fill out explaining what my intentions are. I have to send a copy of my proposed tenancy agreement without any signatures. This all now seems a bit more easier and less stressful way of applying.

Thanks for your advice.

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Great to hear, glad you managed to resolve it

Are you with nationwide? I had the same issue where they couldn’t give me the consent to let paperwork until I had a tenancy start date and contacts etc. When I pointed out the hole in that process they basically admitted the whole process is really just a tick-box exercise and they don’t actually refuse permission, you can basically just rent it out and sort the paperwork later.