Second home financing. Implications of short term rental.
Discussion
I work away from home so I rent a flat close to work for somewhere to stay during the week.
Occasionally I debate buying the flat instead of paying someone else’s mortgage. If I did buy, I have considered letting the place over weekends to help offset the expense “AirBNB style”.
Having done a bit of light research, I’m getting a lot of information pointing to the fact that mortgage companies do not like you using your house for short term rentals on residential mortgages.
Does anybody have any experience of doing such things?
Surely this type of behaviour is a very common with second homes. I thought the holiday home market revolves around subletting the place when you’re not there? Potentially all the concern is with primary residences not secondary.
I could of course get a “buy to let” mortgage, but the higher interest rates would offset any benefit in letting the place.
Occasionally I debate buying the flat instead of paying someone else’s mortgage. If I did buy, I have considered letting the place over weekends to help offset the expense “AirBNB style”.
Having done a bit of light research, I’m getting a lot of information pointing to the fact that mortgage companies do not like you using your house for short term rentals on residential mortgages.
Does anybody have any experience of doing such things?
Surely this type of behaviour is a very common with second homes. I thought the holiday home market revolves around subletting the place when you’re not there? Potentially all the concern is with primary residences not secondary.
I could of course get a “buy to let” mortgage, but the higher interest rates would offset any benefit in letting the place.
AirBnB is a massive grey area when it comes to mortgages and permission. Lenders are often OK with you renting out a room but once you let the whole property even for short periods of time you will be in breach of your mortgage conditions and they could, if they wish, ask for full repayment. AirBnB in terms of mortgage falls between two stools because its not residential and its not buy to let. The mortgage market hasn't really caught up yet.
On top of that you have issues with your contents insurance provider who would be in the right to say you were not covered when sub letting and also the local authority would remove the council tax discount if it was discovered you were sub letting too
On top of that you have issues with your contents insurance provider who would be in the right to say you were not covered when sub letting and also the local authority would remove the council tax discount if it was discovered you were sub letting too
Edited by craigjm on Wednesday 3rd August 12:53
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