Updated October 2026 · Fraser Bond
Landlords · Mortgages
Letting your home? Tell your lender first
What can happen if you don't tell them
Your lender can apply penalties, change your rate or, rarely, demand repayment.
Standard home insurance usually excludes let property, so claims may be refused.
Taking a residential mortgage when you already planned to let is mortgage fraud.
Arrears or a demand for repayment can affect future borrowing.
Your options
Many lenders give permission for a set period, often a year, if you need to move temporarily. Expect a fee and possibly a higher rate. Get it in writing before the tenancy starts.
For long-term letting, a buy-to-let mortgage is usually needed. Lenders look at the expected rent as well as your income.
Taking a lodger while you still live there usually doesn't need consent, but check your mortgage and insurance terms. Rent-a-Room relief may apply.
Rental profits are taxable. Mortgage interest is not deducted directly but gets a basic-rate tax credit. Take tax advice.
Before your first tenant moves in
How Fraser Bond helps homeowners let
- Rental valuation for your lender or broker
- Tenant finding with full referencing
- Full management while you are away
- Compliance with the Renters' Rights Act rules
Frequently asked questions
Is it illegal to rent out my home without telling my lender?
It is usually a breach of contract rather than a crime. It can become fraud if you took out the mortgage intending to let.
How much does consent to let cost?
It varies by lender: a one-off fee, a higher rate, or both.
Can my lender find out?
Yes. Letters to the property, insurance claims, credit checks and land registry records can all reveal it.
Can Fraser Bond manage the property?
Yes. We offer tenant-find and full management across London.
Planning to let your home?
Get a free rental valuation to share with your lender or broker.
Get a free valuationSpeak to our team
