Do You Need Consent to Let From Your Mortgage Lender?

Last reviewed: 27 October 2026Reading time: 8 minutes

Why Your Lender Needs to Know

A residential mortgage is lent on the basis that you live in the property. Lenders see let property as a higher risk. Rent can stop, tenants can damage the home, and if things go wrong, repossessing a let property is slower and more complicated.

Your mortgage conditions will almost certainly require you to ask permission before letting. If you let without consent:

• you are in breach of your mortgage terms, and the lender could demand repayment
• your buildings and contents insurance is unlikely to cover a let property, leaving you exposed if there is a fire or flood
• you may struggle to remortgage later, because lenders ask about how a property has been used

People often become landlords by accident. They may have moved in with a partner, taken a job in another city, inherited a second property or been unable to sell. All of these situations need the lender's agreement before a tenant moves in.

How Consent to Let Works

Consent to let is a formal agreement from your existing lender that allows you to let the property while keeping your current mortgage. It is not available from every lender. Where it is offered, it commonly:

• lasts for a fixed period, after which the lender expects you to move back in, sell or switch to a buy to let mortgage
• comes with an administration fee, an increase in your interest rate, or both
• requires the rent to be at a sensible level compared with the mortgage payment
• requires you to have landlord insurance in place

Every lender sets its own terms, so ask for them in writing before you agree to anything with a tenant.

When You Need a Buy to Let Mortgage Instead

Consent to let is designed for a temporary change of circumstances. If you intend to keep the property as a long-term rental, your lender may insist that you switch to a buy to let mortgage, and it is often the more suitable product anyway.

Buy to let lending is assessed differently from residential lending. MoneyHelper's guidance says:

• you will usually need at least 25% equity in the property
• the rent will normally need to cover 125% to 145% of the monthly mortgage payment
• many buy to let mortgages are interest-only

If your current lender will not offer either option, you can remortgage to a buy to let deal with a different lender. Check your current deal first. If you are within a fixed or discounted period, early repayment charges may apply, and these can be large enough to change your decision.

What Changes if You Buy a New Home and Let the Old One

Many people let their old home because they are moving. In Scotland, this has a tax consequence that is easy to miss. If you keep your old home as a rental and then buy a new main residence, you will own two properties. That means you will normally pay the 8% Additional Dwelling Supplement on the new home.

You can only reclaim that ADS if you sell your previous main residence within 36 months of buying the new one. If you keep letting it beyond that point, the ADS stays paid. Our guide to reclaiming the Additional Dwelling Supplement explains the rule and gives worked examples.

Your Legal Duties as a Landlord in Scotland

Getting your lender's agreement is only the first step. As soon as you let a property in Scotland, you take on the same legal duties as any other landlord:

1. Landlord registration. You must register with the council for the area where the property is before you let it.
2. Private Residential Tenancy. Almost all new lets are Private Residential Tenancies. They are open-ended, so you cannot simply ask a tenant to leave on a fixed date. If you later want to move back in or sell, you will need to rely on one of the legal eviction grounds and follow the correct notice process.
3. Repairing Standard. The home must meet the Repairing Standard. This includes an annual gas safety check, an electrical inspection at least every five years, interlinked fire alarms and carbon monoxide alarms where needed. See our guide to landlord safety certificates.
4. Tenancy deposit. If you take a deposit, it cannot be more than two months' rent, and it must be protected in an approved scheme within 30 working days. See our guide to tenancy deposits.
5. Energy Performance Certificate. You must provide the tenant with a valid EPC.

Tax and Insurance When You Let Your Home

Rental profit is taxable. You will normally need to complete a Self Assessment tax return for each tax year in which you receive rent. Allowable expenses, such as letting agent fees, repairs and council tax paid while the property is empty, reduce the taxable profit.

If you are a Scottish taxpayer, rental profit is taxed at Scottish income tax rates. Our guide to Scottish income tax on rental income explains how the bands work.

When you eventually sell, Capital Gains Tax may be due on part of any gain, because the property was not your home for the whole time you owned it. Your accountant can work out how much relief applies for the years you lived there.

You also need to change your insurance. A standard home insurance policy does not usually cover a property you have let. Landlord insurance covers the building and your liability as a landlord, and it can include options such as loss of rent.