Details of new Buy to Let Mortgage for Airbnb landlords in the UK
The cost of travel seems to have soared in the last 5 years prompting holiday makers and businessman to surf for alternative accommodation via portals such as Airbnb. It however fair to say the Mortgage Lenders have been slow to react to the increased landlord demand and getting a Buy to let Mortgage for Airbnb properties have been very hard to source for clients.
Mortgages have been available for lodgers, students, company lets, holiday lets for quite some time so why has Airbnb struggled to make the break through?
National Headlines prompted by social media showing mass parties at Airbnb accommodation might offer some explanation – but surely these are isolated incidents and probably no different for what goes in some student digs?
My thoughts are Mortgage Lenders have had it comfortable. They had enough customers through the door without the need to dedicate time on product innovation into an undeveloped market. In my opinion it is short sighted to ignore the Airbnb model as looks a resilient one and here to stay. It has broken the back on English belief that communal living is “not for them” – and repeat custom is always a key consideration for any business.
We are now 10 years on since the crash and we are awash with Mortgage Lenders in the buy to let market that require tenancies on an assured shorthold tenancy. There are mouths to feed particularly as tradition buy to let transactions are on the wane following tax and rental stress changes. So I would urge Mortgage Lenders to look closer at the AirBnB mortgages as there is good margin unlike the saturated vanilla buy-to-let market.
For an example of Airbnb mortgage product, click here.
Niche Advice arranges all types of buy to let mortgages including Buy to let Mortgage for Airbnb landlords. For more information please complete our Contact Form on this website or call T: 020 7993 2044.