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NatWest has announced it will introduce new Airbnb-friendly mortgage terms that embrace home sharing via short lets. And now Airbnb wants other lenders to follow suit.
The updated terms mean that new and existing customers can share a spare room or their entire home with guests with confidence. This change will provide a boost to new and existing mortgage holders who wish to let their property on a short-term basis through platforms like Airbnb.
The typical Airbnb landlord in the UK earns almost £5,500 a year on the platform.
Airbnb says many of its landlords let out to help make ends meet, especially in a high-interest rate environment.
The platform’s research suggests over three quarters of homeowners (77%) are thinking about ways to supplement their income. Nearly half of homeowners (47%) would list their home on a short term lettings platform in order to cover the increase in monthly payments, but 40% of borrowers say their mortgage provider won’t allow them to rent out their home or spare room on Airbnb.
New and existing NatWest customers will be able to benefit from the provider’s updated terms, as long as they adhere to conditions set out by NatWest, such as up to 90 nights in a rolling 12 month period and only doing so with an approved platform, like Airbnb.
The introduction of Airbnb-friendly mortgage terms is not just a welcome relief for existing homeowners, but also a significant step towards making homeownership more accessible. By allowing people to leverage their properties as an additional, flexible income stream, this update broadens the path to homeownership.
The new terms acknowledge that for many, the journey to owning a home, one that can be navigated with the help of diverse income sources like Airbnb. It’s a progressive step that aligns with the realities of the modern sharing economy and the evolving needs of today’s homeowners and aspiring homeowners alike.
“At NatWest we want to support our customers by widening their options through our proposition, including sharing their homes through sites such as Airbnb. By updating our policy, this will offer more flexibility and allow more people to take up the benefits of homesharing” explains Lloyd Cochrane, head of Mortgages at NatWest.
And an Airbnb spokesperson adds: “NatWest’s Airbnb-friendly mortgage terms are a welcome boost to families facing the continued prospect of higher mortgage rates. With two-thirds of UK Airbnb hosts saying that the extra income helps them afford the rising cost of living, the act of occasionally renting out your home on Airbnb can help cover up to 69% of the expenses associated with an average UK mortgage.
“We urge other lenders to follow NatWest’s example and help homeowners to boost their income to keep pace with rising costs.”