Changing your mortgage to buy to let means moving from a residential mortgage, where you live in the property, to a mortgage designed for renting it out to tenants.
Lenders treat these differently. Residential mortgages are based on your personal income and affordability, while buy to let mortgages are mainly assessed on the expected rental income from the property.
If you plan to rent out your home in Leicester, your current lender must be aware. Renting out a property without the correct permission can breach your mortgage terms.
Consent to Let vs Remortgaging
There are two main ways to move from a residential mortgage to a buy to let mortgage in Leicester.
The route you take will depend on whether your plans are short term or long term.
Consent to let is usually a temporary arrangement. Your current lender may allow you to rent out your property without switching to a full buy to let mortgage.
This is often used if you are moving elsewhere for a period of time but plan to return.
Remortgaging to a buy to let mortgage is typically the longer-term solution.
This involves switching your current mortgage to a new buy to let product, either with your existing lender or a different one.
As a mortgage broker in Leicester, we help assess which option fits your situation and plans.
When can you get consent to let?
Consent to let is not guaranteed and is offered at your lender’s discretion. Lenders will usually want to understand why you want to rent out the property.
Common reasons include relocating for work, moving in with a partner, or struggling to sell the property. Some lenders may charge a fee or increase your interest rate while consent to let is in place.
Consent to let is often granted for a limited period, meaning it may not be suitable if you plan to become a long-term landlord.
Remortgaging to Buy to Let
If you are planning to rent out your property for the foreseeable future, remortgaging to a buy to let mortgage in Leicester is often the more appropriate option.
This process involves applying for a new mortgage based on rental income rather than your personal income alone.
The lender will assess how much rent the property could generate and whether it meets their criteria.
You will also need to meet typical buy to let requirements, such as having sufficient equity in the property. Most lenders look for at least 20% to 25% equity.
Do you need a deposit to switch?
When remortgaging to a buy to let mortgage, you are not putting down a deposit in the same way as a purchase.
Instead, the focus is on how much equity you hold in the property.
Equity is the difference between your property’s value and the amount remaining on your mortgage.
The more equity you have, the more options you may have available.
If your equity is below a certain level, it may limit the lenders willing to offer a buy to let mortgage.
How Rental Income is Assessed
Lenders will assess the potential rental income before approving a buy to let mortgage in Leicester.
This is usually based on a rental valuation carried out as part of the application.
The expected rent must typically cover around 125% to 145% of the monthly mortgage payment, depending on the lender and your tax position.
This calculation helps ensure the mortgage remains affordable even if interest rates change.
Costs to Consider When Switching
Changing to a buy to let mortgage in Leicester can involve costs that are worth factoring in from the outset.
There may be early repayment charges if you leave your current mortgage deal before it ends.
There are also valuation fees, legal costs, and potential arrangement fees for the new mortgage.
If you choose consent to let instead, your lender may charge a fee or adjust your interest rate.
Understanding these costs early can help you decide which option is more suitable.
Is it worth switching to buy to let?
For many homeowners, switching to a buy to let mortgage in Leicester can open the door to property investment.
It allows you to retain your existing property while generating rental income.
The suitability of this approach depends on factors such as rental demand, property location, and your long-term plans.
Leicester’s strong rental market can make this an appealing option, though each case is different.
Speaking with a mortgage advisor can help you assess whether this is the right move based on your situation.
Date Last Edited: April 1, 2026
