Nationwide Consent to Let: Everything You Need to Know

Nationwide Consent to Let: A Complete Guide for Homeowners

If you have a mortgage with Nationwide and are considering renting out your property, you'll need to obtain consent to let. This permission is required when a homeowner with a residential mortgage wants to let out their property, either temporarily or permanently, without switching to a formal buy-to-let mortgage. Consent to let ensures that the terms of your mortgage remain valid while you rent out the property.

This guide provides everything you need to know about applying for consent to let with Nationwide, including the process, eligibility requirements, fees, and what happens if your request is approved.

What Is Consent to Let?

Consent to let is the formal permission granted by a mortgage lender, such as Nationwide, allowing a homeowner with a residential mortgage to rent out their property. It is a temporary arrangement, typically granted for specific circumstances, such as:

• Moving abroad for a short period
• Relocating for work
• Renting out the property due to changes in personal circumstances

Without obtaining consent to let, renting out a property with a residential mortgage may breach the terms of your mortgage agreement, potentially leading to penalties or the lender demanding repayment of the loan.

When Do You Need Consent to Let from Nationwide?

You will need consent to let if:

• You want to rent out your home: If you have a residential mortgage with Nationwide and plan to rent out the entire property, even temporarily, you must apply for consent to let.
• Your circumstances have changed: If personal circumstances, such as relocation for work or family reasons, require you to rent out your property, consent to let provides a temporary solution without switching to a buy-to-let mortgage.

How to Apply for Consent to Let with Nationwide

Nationwide offers a straightforward process for applying for consent to let. Here’s a step-by-step overview:

1. Check Your Eligibility

Nationwide typically grants consent to let on a case-by-case basis. They are more likely to approve your request if you meet certain criteria, such as:

• You’ve been on your residential mortgage for at least six months.
• You have no arrears on your mortgage.
• Your property will be let for a short period, typically up to 12 months.

If you are still in the introductory fixed-rate period of your mortgage, Nationwide will generally only grant consent to let for a limited time.

2. Contact Nationwide

To start the process, you’ll need to contact Nationwide directly to discuss your situation. You can either visit a branch, call their customer service line, or manage your account online. Nationwide will ask for details about why you want to let out the property, the expected duration of the rental, and whether you plan to return.

3. Submit an Application

Once you’ve spoken to Nationwide, they will provide you with an application form for consent to let. The form requires details such as:

• Your property address and mortgage account number
• The reason for requesting consent to let
• The expected duration of the rental period
• Contact details of any managing agents (if applicable)

You may also need to provide evidence, such as proof of a work relocation or a tenancy agreement.

4. Await Approval

Nationwide will review your application and inform you of their decision. Approval is not guaranteed, and the lender may decline your request if they believe there are risks involved. If approved, you will receive written confirmation of consent to let, including any conditions or fees attached.

Costs and Fees for Nationwide Consent to Let

Nationwide typically charges a one-time administration fee for granting consent to let. This fee can vary but is generally between £50 and £100. It is important to confirm the exact fee when you apply, as it may differ based on your mortgage type and individual circumstances.

In some cases, your mortgage interest rate may increase once consent to let is granted, as letting out the property can be seen as a higher risk for the lender. Nationwide will notify you of any rate changes before you accept the terms.

How Long Does Nationwide Consent to Let Last?

Nationwide typically grants consent to let for up to 12 months. After this period, you will need to:

• Renew your consent: If you plan to continue renting out the property, you can apply for an extension, but this may not be guaranteed.
• Switch to a buy-to-let mortgage: If you intend to let the property long-term, Nationwide may require you to switch from a residential mortgage to a buy-to-let mortgage.

Letting your property beyond the agreed consent period without approval can result in a breach of your mortgage terms.

What Happens if Consent to Let is Denied?

If Nationwide denies your request for consent to let, you should not rent out your property without permission, as doing so could lead to severe penalties, including:

• Breach of mortgage terms: Renting out without consent may violate your mortgage agreement, which could lead to Nationwide demanding immediate repayment of the loan.
• Insurance issues: Your home insurance may be invalidated if you rent out your property without consent from your mortgage lender, leaving you vulnerable in case of accidents or damage.

If your request is denied but you still need to rent out the property, you may need to explore switching to a buy-to-let mortgage with Nationwide or another lender.

Alternatives to Consent to Let

If you are unable to secure consent to let or need a long-term solution, you may want to consider these alternatives:

• Switch to a Buy-to-Let Mortgage: This is a permanent solution if you plan to let the property indefinitely. A buy-to-let mortgage is specifically designed for rental properties and comes with different interest rates and criteria.
• Remortgage with a New Lender: If you’re not satisfied with Nationwide’s terms, you could remortgage with a different lender that offers better conditions for rental properties or provides more flexible consent-to-let policies.

How Fraser Bond Can Help

At Fraser Bond, we understand the complexities of managing property mortgages and rental agreements. If you're considering renting out your property and need advice on securing consent to let with Nationwide, we can guide you through the process. Our services include:

• Expert Mortgage Advice: We can help you navigate your mortgage options, whether you need consent to let or are considering switching to a buy-to-let mortgage.
• Property Management: If you proceed with letting your property, we offer full property management services to handle tenant screening, rent collection, and maintenance.
• Legal Support: Our team can ensure you meet all legal requirements, from obtaining the necessary permissions to handling tenancy agreements and compliance issues.

Conclusion

Obtaining consent to let from Nationwide allows you to legally rent out your property without switching to a buy-to-let mortgage. While the process is generally straightforward, it’s essential to follow the proper steps and understand the potential costs and limitations. If you're unsure of the best way to manage your property rental, Fraser Bond can provide expert advice and support to ensure a smooth transition.

Contact us today to learn more about how we can help you with your consent to let application or other property management needs.