NatWest Consent to Let: What You Need to Know
If you’re a NatWest mortgage holder and considering renting out your property, you may need to apply for Consent to Let. This permission allows you to let your home while keeping your residential mortgage. Here’s a guide to understanding the process, eligibility criteria, and important considerations.
1. What Is NatWest Consent to Let?
Consent to Let is a temporary arrangement that allows homeowners with a residential mortgage to rent out their property legally. Without this permission, letting out your property could breach your mortgage terms, potentially leading to penalties or the lender recalling the loan.
2. Who Needs Consent to Let?
You need NatWest Consent to Let if:
- Your mortgage is residential, and you want to let the property.
- The rental arrangement will last for a temporary period.
You don’t need Consent to Let if:
- You already have a buy-to-let mortgage, which is designed for rental properties.
- You’re letting part of the property (e.g., a single room) and living in the rest as your primary residence, though you should inform NatWest.
3. Eligibility Criteria
To qualify for Consent to Let, NatWest typically requires:
- Valid Reason for Letting: Examples include relocating for work, temporary travel, or personal circumstances.
- Good Mortgage Standing: Your mortgage account should be up to date with no arrears.
- Limited Time Frame: Consent to Let is often granted for a defined period (e.g., 12 months).
4. How to Apply
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Contact NatWest
Call the NatWest mortgage team or log into your online banking to notify them of your intention to let the property.
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Provide Details
- Explain the reason for letting.
- Share details of the proposed rental arrangement, such as the duration and whether it’s a short-term or long-term let.
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Pay the Fee
NatWest may charge an administrative fee for processing Consent to Let. Fees can vary but are typically in the range of £100–£300.
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Receive Confirmation
If approved, you’ll receive written confirmation, including any conditions you must meet during the Consent to Let period.
5. Conditions of Consent to Let
If NatWest grants Consent to Let, you may need to comply with specific conditions, such as:
- Increased Interest Rate: Your mortgage rate might be adjusted to reflect the increased risk associated with letting.
- Duration Limit: Consent is typically granted for a fixed period, after which you’ll need to reapply or switch to a buy-to-let mortgage.
- Insurance Requirements: You’ll need landlord insurance to cover rental-specific risks.
6. Consequences of Letting Without Consent
Letting your property without obtaining Consent to Let can lead to:
- Breach of mortgage terms, which may result in NatWest recalling your loan.
- Potential fines or penalties.
- Lack of insurance coverage if issues arise during the tenancy.
7. Alternatives to Consent to Let
If you plan to rent out your property for an extended period, you may want to consider:
- Switching to a Buy-to-Let Mortgage: Designed for landlords, this option provides long-term support for rental properties.
- Remortgaging with Another Lender: If NatWest’s Consent to Let terms aren’t favorable, explore buy-to-let options with other lenders.
8. Tips for a Successful Application
- Prepare Early: Notify NatWest as soon as you know you’ll need to let the property.
- Keep Documents Ready: Be prepared to provide proof of income, tenancy agreements, and insurance.
- Stay Up to Date on Payments: Ensure your mortgage is current with no missed payments.
Conclusion
NatWest Consent to Let allows homeowners to let their property while maintaining a residential mortgage, providing flexibility for temporary circumstances. By understanding the requirements and following the application process, you can ensure compliance and avoid potential risks. If renting becomes a long-term plan, consider transitioning to a buy-to-let mortgage for greater stability.
How Fraser Bond Can Assist
At Fraser Bond, we specialize in supporting property owners through all stages of renting. Our services include:
- Mortgage Advice: Connecting you with trusted brokers to explore Consent to Let and buy-to-let options.
- Property Management: Assisting with tenant searches, agreements, and property maintenance.
- Insurance Guidance: Helping you secure the right landlord insurance for your needs.
Contact Fraser Bond today for expert advice and comprehensive property services.
