Buy to let mortgage update - lenders to penalise landlords using Airbnb short lets.

Landlords could end up in very hot water with their lenders by making one common assumption: thinking they can rent out their buy to let property as they please.

Short-term rentals via sites such as Airbnb are popular with property owners tempted by the possible returns they could make, which may be greater than over the more traditional rental terms. However, by sourcing tenants this way, you could be breaking the rules of your buy to let mortgage, and risk being penalised by the lender.  

Penalties include:

The termination of your present deal incurring:

• The imposition of a much higher rate or the immediate repayment of the loan.
• A black mark against your credit rating.
• Invalidation of your home insurance.

Lenders do not like risk and prefer the security offered by assured tenancies of at least 6 months, preferably longer. Some lenders do make exceptions and others offer a specialist product, however, the best course of action to avoid making an expensive mistake, is to consult with independent mortgage broker specialist, Deal Direct.

Our advisors are regulated by the FCA to offer mortgage advice and are highly qualified. However we are not financial advisors, and are not regulated to advise on the suitability of property as an investment. For this type of advice, you will need to call an IFA.

Please note:

Buy to let mortgages from:

• applicants whose intention is to benefit from house price growth
• applicants whose intention is to benefit from rental income
• applicants who are letting to buy

will be treated as normal buy to let and not as a consumer buy to let. In addition, their subsequent remortgage applications will also be treated in the same manner. 

Call us today on 0800 048 8828 for a buy to let deal.