Buy to let mortgage for airbnb

Partridge35

We are buying a small one bed flat specifically to do airbnb. I would be grateful if anyone could give me any ideas about the best way to go about getting a buy to let mortgage for this and whether there are any specific products that you could recommend. Someone advised not to mention that the BTL mortgage was specifically for airbnb - does anyone have any experience with this?

We have enough deposit to qualify for a 60% LTV loan.

Many thanks for any advice.

steeeb

Your best bet would be to see an independent all of market broker. They can advise on this and likely get you the best deal for your circumstances.

In any case, the property usually needs to be able to be let out at 125% the interest costs of the mortgage - so it'll be valued at what it can be let out at (as well as the actual value, obviously) and it'll need to pass given criteria.

Given your LTV I shouldn't think the above is a problem. Whether you actually let it out once you have the mortgage, live in it, keep it empty, doesn't really matter as long as you fit the criteria and have the necessary insurances the mortgage needs (check the insurance terms if there are going to be long periods with no-one living there).

ACG

Whats airbnb?

Senior_Paper_Monitor

au contraire !!!


'living in it' would be a breach of BTL terms and conditions (referred to as 'gaming' and one of the industry's 'hot potatoes' at the moment)


most BTL mortgage BTL conditions require the use of an assured shorthold tenancy (which airbnb doesn't) - although if you use a lender with a 'holiday let' product this would probably be compliant.

Senior_Paper_Monitor

Here's the sales blurb for airbnb ... https://www.airbnb.co.uk


Have had a couple of these enquiries over last couple of months - most BTL lenders less than enthusiastic, but have one going 'holiday home' route currently

ACG

Everyday is a school day.

It does appear to be a holiday let rather than a BTL.

hostie

Hello, I just wondered what you did in the end. Holiday Let mortgages are a lot more expensive and difficult to obtain.

amnblog

AirBNB is a cash buyers market.

superdudeo

amnblog wrote: »

AirBNB is a cash buyers market.

Hi, would you be able to elaborate as to why it is a cash buyers market?

I was under the impression a holiday let mortgage should be perfectly sufficient.

hostie

There is money to be made from airbnb for sure, but beware, airbnb is also a gold mine for squatters and other undesirables. Airbnb is all marketing. Their host guarantee is a total sham (alas, I speak from experience). They really don't care what kind of problems you have after the guests arrive. They don't really care if the guests never leave. They have had their money after all. I had a major problem with fraud through airbnb and airbnb customer services simply couldn't have been any worse. The only way to get anywhere with them is to start interfering with their glitzy marketing campaign.
I think this (the potential squatters issue) is why mortgage providers are reluctant to touch this kind of thing and therefore why superdudeo says it is a cash buyers market.

hostie

Of course I think you can minimise your risk by refusing lets of one month or more. Difficult to do when the pennies are offered to you
Good luck x