Most lenders do not allow borrowers with a residential mortgage to let out their houses on a short-term basis via sites like Airbnb, a September 2017 MortgageStrategy.co.uk article states.
Letting out a home on a short-term basis is increasingly popular thanks to the likes of Airbnb, but what many people with a mortgage may not realise is that most lenders do not allow this under the terms of the mortgage. They regard receiving money from short-term tenants as a commercial activity more suitable for a commercial mortgage.
If an owner lets out their home on a number of occasions, the fact that many people have access to the property is seen as a security risk.
Some lenders are more relaxed when it comes to letting out only one room while the owners are resident. This arrangement is regarded more as taking in lodgers.
A survey by MortgageStrategy.co.uk found that while most residential mortgage lenders are not keen on Airbnb, some are flexible, allowing up to 90 days’ Airbnb use. Some lenders are fine with renting out up to two rooms, but not the whole house, so homeowners need to check with their lender for the full details if considering Airbnb.
People buying a home with the intention of letting it out for part of the year should disclose this when applying for a mortgage through a broker. If the owner intends to let out the home for more than 90 days, they will probably be advised by the broker to take out a commercial mortgage.
