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Letting your home on Airbnb - does your mortgage lender give permission?
toastiechar
Posts: 11 Forumite
Hi All,
I have just called my mortgage provider (Natwest) and asked if my mortgage allows me to let out my property on a short-term basis on Airbnb. I would expect it to be let out for a couple of weeks a year, plus some weekends. I'd be letting the whole property, not just a spare room.
I was told that Natwest don't grant permission for this sort of letting at all, across any of their mortgage products. They went as far as to say they didn't know of any mortgage providers who would allow Airbnb lettings. They said they can grant permission for me to let out my property on a longer-term basis (between 6 months and 1 year), for a fee of £100.00. This isn't what I'm after though.
I wonder how other Airbnbers do it? Do they let out their property without permission from their lender? Or have they found a lender who will agree to it?
Does anyone have any experience with this? Any thoughts much appreciated.
Best wishes,
Toastiechar
I have just called my mortgage provider (Natwest) and asked if my mortgage allows me to let out my property on a short-term basis on Airbnb. I would expect it to be let out for a couple of weeks a year, plus some weekends. I'd be letting the whole property, not just a spare room.
I was told that Natwest don't grant permission for this sort of letting at all, across any of their mortgage products. They went as far as to say they didn't know of any mortgage providers who would allow Airbnb lettings. They said they can grant permission for me to let out my property on a longer-term basis (between 6 months and 1 year), for a fee of £100.00. This isn't what I'm after though.
I wonder how other Airbnbers do it? Do they let out their property without permission from their lender? Or have they found a lender who will agree to it?
Does anyone have any experience with this? Any thoughts much appreciated.
Best wishes,
Toastiechar
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Comments
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I wonder how other Airbnbers do it? Do they let out their property without permission from their lender?
I suspect most ignore the issue and just do it (as well as ignoring any local regulations to do with short-term rentals).0 -
I think you're probably right. I want to do this by the book though so will keep looking for a solution!0
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toastiechar wrote: »I think you're probably right. I want to do this by the book though so will keep looking for a solution!
Pay off the mortgage. How much is left?:footie:
Regular savers earn 6% interest (HSBC, First Direct, M&S) Loans cost 2.9% per year (Nationwide) = FREE money. 0 -
toastiechar wrote: »I wonder how other Airbnbers do it? Do they let out their property without permission from their lender? Or have they found a lender who will agree to it?
I suspect both their mortgage company and the taxman are in the dark about their Airbnb activities....0 -
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toastiechar wrote: »A significant amount left to pay off I'm afraid!
Ahhh..probably very little chance of doing it then. You need to live in the property at all times. You could stay living in the property out of the way in 1 bedroom by yourself and have the rest of the property for the guests for short periods of time without too much trouble but the problem is you moving out whilst they are in occupation. Your insurance wouldn't cover that and therefore you'd be in breach of the mortgage terms and conditions.:footie: Regular savers earn 6% interest (HSBC, First Direct, M&S) Loans cost 2.9% per year (Nationwide) = FREE money. 0 -
Pay off the mortgage. How much is left?Ahhh..probably very little chance of doing it then. You need to live in the property at all times. You could stay living in the property out of the way in 1 bedroom by yourself and have the rest of the property for the guests for short periods of time without too much trouble but the problem is you moving out whilst they are in occupation. Your insurance wouldn't cover that and therefore you'd be in breach of the mortgage terms and conditions.
Sorting the insurance was my next job after getting the go-ahead from the mortgage company. The property is only a studio flat so can't co-occupy I'm afraid.
Many thanks for your thoughts!0 -
Ahhh..probably very little chance of doing it then. You need to live in the property at all times. You could stay living in the property out of the way in 1 bedroom by yourself and have the rest of the property for the guests for short periods of time without too much trouble but the problem is you moving out whilst they are in occupation. Your insurance wouldn't cover that and therefore you'd be in breach of the mortgage terms and conditions.
Very grey area. Allegedly people living near Wimbledon have been doing it for years, though possibly not through airbnb.
I would think that mortgage lenders are happy to turn a blind eye when the people occupying the property are not given any rights to remain that an AST would provide ie as long as it doesn't become their main home and therefore subject to tenancy laws rather than contract law. Insurers would need to be informed and may charge a premium or decide not to offer cover for damage caused by paying guests.I'm a Forum Ambassador on the housing, mortgages, student & coronavirus Boards, money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
This is the trouble with internet businesses of this type. They are easy to get involved in, and easy to to 'overlook' the safety regulations, tax, insurance etc
I believe the Uber taxi service is in some ways similar. Becoming an Uber driver is laughably easy....0 -
This is the trouble with internet businesses of this type. They are easy to get involved in, and easy to to 'overlook' the safety regulations, tax, insurance etc
I believe the Uber taxi service is in some ways similar. Becoming an Uber driver is laughably easy....
That's why my cabbie this morning was able to offer such good advice on tenancy issues and contract matters. Cheers mate, and sorry about the 4p tip....:D0
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