Do you need your mortgage lender's consent to short-let your home?

In most cases, yes. If your home has a mortgage, your lender almost certainly needs to agree before you let it to short-stay guests. Skip this step and you could be in breach of your mortgage, with no warning until something goes wrong. Here's what to check, and how to ask.

Why does your lender need to know?

Your mortgage was agreed on the basis of how the home would be used. A residential mortgage assumes you, or your family, live there. A buy-to-let mortgage assumes a tenant on a standard tenancy. Short stays are a third kind of use, with more people coming and going, more wear and a different risk to the lender's security.

Even official guidance puts your mortgage provider on the list of people you may need permission from before short letting. The Greater London Authority's guidance lists the landlord, the freeholder, your mortgage provider and your insurance provider.

What happens if you don't ask your lender?

A lender quoted by London Money was blunt about it. Barclays said: "A customer will be in breach of their contract where they let out the property without our explicit consent."

In practice, that can mean higher interest rates, a demand to change product, or in serious cases, the lender asking for the loan to be repaid. It can also affect your insurance, because many policies expect the mortgage terms to be followed.

What do lenders usually allow?

Policies vary widely and change often, so treat any example as a starting point for your own conversation with your lender, not a promise. London Money's review of lender policies found examples such as short-term lets allowed only on a second home, for a limited number of weeks a year, or only for letting rooms while the owner lives there. The details differ from lender to lender.

Specialist lenders are clearer. Together, a lender that offers holiday let mortgages, says that welcoming paying guests is likely to fall outside the permitted use of a residential or standard Buy to Let mortgage, and that owners should speak to their current lender before accepting bookings.

Which type of mortgage do you have?

• Residential mortgage. For the home you live in. Some lenders allow occasional short lets with consent, often with limits.
• Buy-to-let mortgage. For letting to tenants. Many don't cover short stays without specific consent.
• Holiday let mortgage. Designed for homes let to short-stay guests. If short lets will be the main use, this is often the right product.

What if your home is a flat?

Your lease matters to your lender too. Mortgage broker Fox Davidson says lenders that lend on short-let flats want to see a positive lease position, with the lease either expressly allowing short lets or silent on the point. An outright ban in the lease usually means the lender will decline. Read our guide: Can you short-let a leasehold flat?

How do you ask your lender?

1. Find your mortgage terms and look for clauses on letting, occupation and business use.
2. Write to your lender, or ask your broker to. Explain clearly that you want to let the home for short stays, whether it will still be your home some of the time, and roughly how many nights a year.
3. Ask for the answer in writing, including any conditions, fees or rate changes.
4. Tell your insurer at the same time. Standard home insurance rarely covers paying guests.
5. Keep the letters with your property records.

What does consent cost?

Some lenders give consent for free. Others charge a fee, add a percentage to your interest rate, or ask you to move to a different product. Ask for all of this in writing before you decide. A small increase in your mortgage cost is usually far less than the difference between rent and short-let income, but you need the real numbers to be sure.

What should you ask your lender?

• Do you allow short-term or holiday lets on my current mortgage, and on what terms?
• Is there a limit on the number of nights or weeks a year?
• Will my interest rate, product or fees change if you agree?
• Do you need to see my lease, if it's a flat, or my insurance policy?
• Does your consent cover medium-term stays of a month or more as well?
• How long does your consent last, and what happens when my deal ends?

Should you remortgage onto a holiday let mortgage?

If short lets will be the main use of the home, a holiday let mortgage may suit you better than asking for consent on your current deal. Specialist lenders usually look at the property, the likely income and your own finances together. Check any early repayment charges on your current mortgage before you switch, because they can be large. A broker who arranges holiday let mortgages can compare the options with you.

What if your lender says no?

You have three options: switch to a lender or product that allows short lets, choose medium-term stays if your lender treats them differently, or keep the home on a standard tenancy. A mortgage broker who knows holiday let lending can tell you which lenders are likely to say yes.

We ask every owner about their mortgage, lease and insurance before we list a home. Read more in our guide to Airbnb rules in Brighton, or get a free valuation to see what your home could earn.

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This is general information, not legal, financial, tax or insurance advice. Market figures are averages as of the date shown above and change every month. Speak to a qualified professional before you act on anything here.