NatWest rolls out Airbnb-friendly mortgage terms
NatWest has launched new Airbnb-friendly mortgage terms that allow borrowers to share a spare room or their entire home with guests.
New and existing NatWest customers will be able to benefit from the provider’s updated terms as long as they adhere to NatWest's conditions, such as staying up to 90 nights in a rolling 12-month period and only doing so with an approved platform, like Airbnb.
The bank says this policy change will provide a welcome boost to mortgage holders struggling with higher interest rates and wishing to rent their property on a short-term basis through platforms like Airbnb to help make ends meet.
The typical Host in the UK earns almost £5,500 a year on Airbnb - enough to cover 69% of the average annual mortgage payment. This can provide a significant boost to families and households who are struggling to make ends meet.
Nearly half of homeowners (47%) would list their home on a short-term lettings platform to cover the increase in monthly payments, but 40% of borrowers say their mortgage provider won’t allow them to rent out their home or spare room on Airbnb.
Aaron Strutt, product director at Trinity Financial, says: "Having the option to let out your property to generate some extra income is nice. More of the bigger banks have made it easier to let a property, but if you plan to let out a property, it is worth checking your lender's permission to let policy.
"NatWest has changed its policy to resemble Barclays and Metro Bank. If you are going to let your property go, it is advisable to make sure you tell your building's insurance provider so you are covered if something unfortunate happens.
Many lenders have harsh permission-to-let policies. They do not allow short-term lets and bump up the rate if you need to move out of your property. Before you go with a lender, it is worth checking the permission-to-let policy if you think you may be moving overseas or relocating in the future, especially if you take a five-year fix or longer-term deal. You may also need to pay tax on the rental income.
The figures in the article provided by NatWest are based on the typical Host earnings amount, which represents the median earnings for UK Hosts in 2023. The mortgage calculation is based on average mortgage repayments, according to thinkplutus.co.uk. The picture is of St Katharine's Dock, London.
Call Trinity Financial on 020 7016 0790 to secure an Airbnb mortgage, book a consultation, or complete our mortgage questionnaire.
The information contained within was correct at the time of publication but is subject to change.
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