NatWest rule change offers 'welcome relief' for homeowners looking to boost savings by £5.5k a year
The new terms will also make it easier for customers to let out their homes
PA
NatWest has launched an “Airbnb mortgage” to help borrowers who are struggling to pay their mortgage amid the cost of living crisis.
The new mortgage deal will offer homeowners more "flexibility" if they wish to share a spare room or their entire home with guests.
New and existing customers at the bank will no longer need to apply and pay for a “Consent to Let,” providing they follow the listing rules.
Customers must only let a room in their home for up to 90 days of the year and it has to be through an “approved platform” like Airbnb.
According to NatWest, the typical host in the UK earns almost £5,500 a year on Airbnb. This is enough to cover 69 per cent of the average annual mortgage payment which can provide "a significant boost" to families and households who are struggling to make ends meet.
With the update in policy, the bank hopes more families facing higher mortgage rates can “take up the benefits of home sharing”.
According to NatWest, the typical host in the UK earns almost £5,500 a year on Airbnb.
GettyMost lenders do not allow homeowners to let out their properties on a flexible basis without specific permission.
Nationwide allows letting out a room for for up to 18 weeks per year, while Barclays and Metro Bank allow 90 days annually, with a limit of 30 consecutive days.
Santander allows property letting with 'consent to let,' subject to a £295 fee.
Lloyd Cochrane, head of mortgages at NatWest said: “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 home-sharing.”
Amanda Cupples, Airbnb’s general manager for UK and Northern Europe said: “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 per cent 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.”
Ravesh Patel, director and senior mortgage consultant at broker Reside Mortgages says that most mortgage agreements do not accept homeowners using their homes on Airbnb.
He said: "If you take on a residential mortgage, you're agreeing to the terms set by that lender and one main condition is that you will wholly occupy that property and not rent it out."
Companies have seen a rise in homeowners taking lodgers.
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SpareRoom said that there has been a 89 per cent increase in households taking in a lodger between January 2021 and January 2024.
They believe the the increase is due to painful mortgage costs, and customers needing to make extra money to pay their bills.
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