Understanding Santander's Consent to Let
If you have a residential mortgage with Santander and want to rent out your property, you’ll likely need Consent to Let. This is a formal agreement from your lender allowing you to let your home without switching to a buy-to-let mortgage. Without this consent, you could be in breach of your mortgage terms, which may have serious consequences.
In this guide, we’ll explore:
- What Santander’s Consent to Let is
- Eligibility criteria
- Costs and fees involved
- Alternatives if your request is denied
- How Fraser Bond can assist you
What Is Santander’s Consent to Let?
Consent to Let is a temporary permission granted by Santander, allowing homeowners with a residential mortgage to let out their property for a limited period. This is typically needed in scenarios such as:
- A temporary job relocation
- Moving in with a partner
- Buying a new home but unable to sell the current one immediately
Unlike a buy-to-let mortgage, which is designed for rental properties, Consent to Let is a short-term solution and is usually granted for 12 months.
Eligibility for Santander Consent to Let
Not all Santander mortgage customers will qualify for Consent to Let. Santander typically considers the following factors:
- Mortgage Status – Your mortgage must not be in arrears, and you should have held the mortgage for a minimum period (usually 6 months).
- Loan-to-Value (LTV) Ratio – Your LTV must meet Santander’s requirements, meaning you may need sufficient equity in your property.
- Reason for Letting – Santander requires a valid reason for requesting Consent to Let, such as temporary relocation.
- Type of Tenancy Agreement – You must use an Assured Shorthold Tenancy (AST) agreement with a minimum of 6 months and a maximum of 12 months.
- Approval is Not Guaranteed – Santander reviews each case individually and may reject applications that don’t align with their lending criteria.
Costs and Fees Involved
If Santander grants Consent to Let, expect additional costs, which may include:
- Consent to Let Fee – Santander may charge a one-time administration fee (varies based on your mortgage terms).
- Interest Rate Increase – Some customers may see a higher interest rate applied during the Consent to Let period.
- Insurance Requirements – You may need a landlord insurance policy, as standard home insurance won’t cover rental properties.
How to Apply for Santander Consent to Let
- Contact Santander – Call Santander’s mortgage team to check eligibility and request an application form.
- Provide Supporting Documents – You may need to explain why you need Consent to Let and provide evidence, such as employment relocation documents.
- Await Decision – Santander will assess your request, considering financial stability and reason for letting.
- Receive Approval & Adjust Mortgage Terms – If approved, you will receive written confirmation with new mortgage terms.
What If Santander Declines Your Consent to Let Request?
If Santander refuses your request, you have a few options:
- Switch to a Buy-to-Let Mortgage – If you plan to rent long-term, remortgaging to a buy-to-let product may be more suitable.
- Consider Specialist Lenders – Some lenders offer more flexible options for accidental landlords.
- Seek Professional Advice – Fraser Bond can help assess your situation and provide tailored mortgage solutions.
How Fraser Bond Can Help
At Fraser Bond, we specialize in helping homeowners navigate complex mortgage scenarios. Whether you need help applying for Consent to Let, remortgaging to a buy-to-let product, or finding the right tenants, our experts are here to assist.
Our Services Include:
- Mortgage and financing advice
- Property letting and tenant sourcing
- Investment strategy for landlords
Need expert advice on renting out your home? Contact Fraser Bond today for a consultation.
