If you’re considering moving or relocating temporarily, you might be wondering: “Can I rent my house if I have a mortgage?” The short answer is yes — but with important conditions.
Most mortgages include clauses that restrict renting unless under certain circumstances. In this post, we’ll explain:
- Whether you can rent out your mortgaged home
- What types of mortgages allow renting
- How to do it legally and responsibly
Can You Rent Out a House With a Mortgage?
It depends on the type of mortgage and what your lender allows .
1. Primary Residence Loans
- Most standard mortgages are issued for owner-occupied homes .
- These often restrict renting without permission for the first 6–12 months .
- Some allow renting after living in the home for a year , especially if you’ve moved out permanently.
2. Buy-to-Let Mortgages
- Designed specifically for landlords.
- Allow renting from day one.
- Usually require a larger down payment and come with higher interest rates.
3. Mortgage Clauses to Watch For
- Owner Occupancy Clause : Requires you to live in the home for a set period.
- Due-on-Sale Clause : Lenders can demand full repayment if they believe you’re no longer using the home as your primary residence.
Steps to Legally Rent Your House With a Mortgage
Step 1: Check Your Mortgage Agreement
Review your loan documents or contact your lender to see if renting is allowed.
Step 2: Get Permission (if required)
Some lenders may ask you to:
- Notify them in writing
- Switch to a buy-to-let mortgage
- Pay a fee or refinance
Step 3: Inform Your Insurance Company
Your homeowner’s insurance may not cover rental activity. You may need to switch to landlord insurance .
Step 4: Prepare Your Property
Make necessary repairs, screen tenants, and draft a solid lease agreement.
Risks of Renting Without Approval
Renting your home without telling your lender can lead to serious consequences:
- Being asked to repay the entire loan immediately
- Breach of contract claims
- Cancellation of insurance coverage
Always proceed with transparency and follow your lender’s guidelines.
Can You Rent to Family or Friends?
Even if you’re renting to someone you know, the same rules apply. Lenders care about whether the property is being used for income, regardless of who lives there.
Final Thoughts
Yes, you can rent your house if you have a mortgage , but only if your loan terms allow it. Always consult your lender before making the move, and consider refinancing into a buy-to-let mortgage if you plan to become a long-term landlord.
Renting out your home can be a smart way to generate income — just make sure you do it the right way.
Frequently Asked Questions (FAQs)
Q1: Can I rent my house without telling my mortgage company?
No, doing so could violate your loan agreement and result in penalties or loan acceleration.
Q2: Do I need a different type of insurance to rent my house?
Yes, standard homeowner’s insurance doesn’t cover rental properties. You should get landlord insurance instead.
Q3: Can I rent out part of my home while still living there?
Yes, renting a room or basement suite is usually allowed under owner-occupied loans, as long as you still reside there.
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