Just helping a client get a mortgage on 3 x btl properties he has on AirBnB contracts. It’s surprising that not many mortgage lenders want to lend on AirBnB type contracts, but we found him a lender that will lend upto 65% ltv on them with AirBnB style contracts.
Many who have properties that they let out on AirBnB contracts might be tempted to just use a standard BTL mortgage, but under the terms of that mortgage contract it states the btl is to be let one n=one single AST and breaking that mortgage condition means you are breaking the rules of the btl mortgage.
Think it doesn’t matter? ok well let’s look at what could happen, the property gets some damage or even worse ends up on the front page of the tabloids, we’ve all seen one there before right ?! or for whatever reason the lender becomes aware that its being let on short term contracts like AirBnB.
Btl and AirBNB mortgages
The BTL lender can, now ask for its money back in full, and can place a flag on the lenders systems to say, they are rescinding the mortgage due to it breaking their terms & conditions…….. now I wonder how many BTL lenders are going to rush to now lend that person any money ?
The bad news is that a person might have been quite affluent, and suddenly find that they almost become blacklisted by lenders, such that what was a growing property empire becomes stilted if not shut down completely from them all because they broke the terms of the mortgage.
now this is all scare mongering right ? – tell you what ring up your current btl lender and ask them what would happen if you wanted to change your current btl to an AirBnB style letting.
Getting an AirBNB mortgage
Getting an AirBnB mortgage is fairly easy, you just have to approach the right lenders, and be prepared they will minimise their risk by only lending 65% of the property price. Rates are very much inline with std BTL mortgage deals, and lets face it you can if you get it right , make quite a bit from AirBnB lettings !!
ps I’m here when you need me !
Page tags: AirBnB mortgages, mortgage for AirBnb property, btl mortgage airBnB