17 Jan 2022
We don’t usually publicise the likes of mortgage products on this site. But our Editor thought this looked useful to many of our readership and so here it is!
Suffolk Building Society has just become one of the few lenders to consider applications from landlords who intend to market and let properties using Airbnb.
The change applies to all of the society’s mainstream holiday let range which offers both a fixed and discounted rate up to 80 per cent Loan To Value with a minimum loan of £75,000, a maximum loan of £1m, and a minimum property value of £100,000 for properties in England and Wales.
In line with existing holiday let criteria, the society will make a rental coverage assessment calculation – formally called an Interest Coverage Ratio – against the anticipated letting value.
The known weekly rental income – or the anticipated revenue during low, medium, and high season – will need to be provided by an independent lettings agent, rather than Airbnb.
The annual rental must provide a minimum of 145 per cent rental coverage and owners may occupy the mortgaged holiday let property for personal use for up to 60 days per year.
The society’s head of intermediary relations, Charlotte Grimshaw, says: “The popularity of domestic holidays in the wake of the pandemic looks set to continue, as costs of holidays abroad increase, restrictions persist, and rules around isolation continually change, making travel abroad more hassle than it’s worth for many.
“This, coupled with the way lockdown has altered people’s lives, from welcoming new pets, to a better appreciation of the British countryside, all make holidaying in the UK appealing.
“Airbnb was once the domain of digitally-savvy younger generations, but it is now a trusted source of accommodation by all, whether that be to discover a luxury home for a family holiday or a property more suited to a business trip and everything else in between.
“Therefore, Airbnb is increasingly important for holiday let landlords too and we want to support this market by allowing Airbnb landlords to apply for a new mortgage or remortgage with us.
“We also understand that many holiday let landlords take many routes to market, advertising their properties on several sites at once to maximise their potential income. By making this change we are able to support this entrepreneurialism and help our landlord borrowers reach a wider customer base.”
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