Letting your property
If you want to let your property, instead of living in the property, you can, but you’ll need to get permission from us first.
Please remember, that once your property is let, you cannot:
- switch your mortgage deal
- take additional borrowing
- complete a term change, add or remove a borrower.
Unless you are a member of the British Armed Forces or have a critical illness.
If you've already started letting your property, you'll need to get permission from us as soon as possible. Your mortgage terms and conditions explain that you need permission from us to let your property before the let starts and any breach in these conditions could lead to further action being taken.
Please call us on 03457 30 20 10 (Monday to Friday, 8am to 6pm. Saturday 8.30am to 4pm. Closed Sundays and bank holidays).
Fees and charges for letting your property
We’ll add 1% to your current interest rate while you’re letting your property. We will give you reasonable notice of any change to the additional letting interest rate and let you know about any amends to the rates by changing our tariff of charges page - PDF 73KB (opens in a new window).
If you're a member of the British Armed Forces and want to let your property we won’t charge the additional letting interest rate. When you request permission to let, we’ll require proof you’re still a serving member. Please remember that you’ll need to let us know if this situation changes.
If you have one of our Later Life mortgages and want to let your property, please call us on 03457 30 20 10 (Monday to Friday, 8am to 6pm. Saturday 8.30am to 4pm. Closed Sundays and bank holidays.)
Tax relief changes for landlords
If you’re currently letting out a property with a mortgage – or thinking about doing this – there was an important income tax change in 2017 which you need to be aware of. This change applied to residential lettings only; different tax rules apply for commercial and furnished holiday lets.
In the 2016/17 tax year, when calculating your taxable income you could continue to deduct most costs from rental income. Allowable costs include mortgage interest, but exclude capital costs such as improvements and any capital repayment element of your mortgage payments.
This changed from 6 April 2017. The new rules take full effect from 6 April 2020, but since 6 April 2017 the changes have been phased in by 25% a year until 2020/21 with a mix of the old and new rules used when calculating your taxable income and tax liability.
Under the new rules, you can no longer deduct finance costs (such as mortgage interest, mortgage arrangement fees, interest on loans to purchase furnishings) from rental income when calculating your taxable income. Instead, you'll get the basic rate (currently 20%) deduction of these costs from your tax liability.
This may mean some of your income moves into a higher tax band, as your taxable income could increase. Further information on these upcoming changes can be found on GOV.UK.
No information on this site should be taken as tax advice. For advice you should consult with an independent tax adviser.
You should also talk to your insurance provider to find out if letting your property will affect your home insurance policy.
Getting permission to let your property
You'll need to complete a permission to let form.
Form sent by post
The permission to let form is then sent to you by post.
Please complete and return to:
Mortgage Servicing - LettingsNationwide Building Society
Kings Park Road
If you wish to end the letting agreement you will need to write to us at the above address with your new postal address. This is so we can update our records. Your letter must be signed by all borrowers.