A mortgage lender has added a clause to its home loans that allows borrowers to let out their property through Airbnb without asking its permission.
Generally lenders expect customers to ask permission before offering their homes for short-term lets, and some will charge a fee to give consent. A survey by the Guardian in April found some refused short-term lets completely, while others asked up to £295 in consent fees.
Metro Bank said its mortgage customers could now let their homes on Airbnb or similar sites for up to 90 days a year without contacting it for prior approval.
The change will apply to existing customers as well as new borrowers, and there are no restrictions on the size of the mortgage they need or type of deal they are on.
The bank, which was set up as a challenger to the main high street banks, said it was “a pioneering move to support the sharing economy”. It has previously joined forces with peer-to-peer lender Zopa to offer loans through its platform.
Paul Riseborough, chief commercial officer at Metro Bank, said: “Our focus is on making our customers’ lives as straightforward and convenient as possible, and we therefore hope today’s news will give our customers the reassurance they need to jump in and take advantage of everything the dynamic sharing economy has to offer.”
Airbnb allows homeowners to rent out rooms or entire properties for as long as they want, but in London there are rules restricting lets to 90 nights in a calendar year.
In practice, many may not alert their lender, but if a bank or building society was to find out a that customer had breached its terms, it could choose to demand early repayment of their mortgage.
Andrew Montlake, director of mortgage broker Coreco, said Metro Bank had taken an unusual but welcome stance.
“More people have begun to mention the possibility of utilising services such as Airbnb but most lenders will not allow you to rent out your property without consent to let from them,” he said.
“It is important, however, to also check with your buildings and contents insurance provider whether you will still be covered if something happens while a third party is occupying the property even for a short time.”
