Like insurance, you must inform your mortgage provider that you are renting out your property. Standard residential mortgages are not suitable for a rented property, although your existing lender may permit you to rent for a limited period under your existing mortgage.
Failing that, you’ll need to switch to a buy-to-let mortgage. You can expect to pay an arrangement fee, and there may be penalties for ending an existing fixed-rate deal early. Also, your new interest rate may differ from your current one.
Be aware that interest rates on buy-to-let mortgages are often higher than standard mortgages, as are arrangement fees, and you may be offered a lower loan-to-value ratio than on a conventional mortgage.
If you’re looking to rent out a leasehold property, check the terms of your lease, as some do not permit subletting.