One of the UK’s leading mortgage providers has announced it will introduce new Airbnb-friendly mortgage terms that embrace home sharing. 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 welcome boost to new and existing mortgage holders who are struggling with higher interest rates and wish to rent their property on a short-term basis through platforms like Airbnb to help make ends meet.

Airbnb allows people to use their homes – typically their greatest expense – to boost their income and help afford their homes. The typical Host in the UK earns almost £5,500 a year on Airbnb – enough to cover 69% of the average annual mortgage payment – which can provide a significant boost to families and households who are struggling to make ends meet.

As families face the continued prospect of trying to keep pace with high interest rates, 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 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.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Orignal source: https://news.airbnb.com/en-uk/natwest-rolls-out-airbnb-friendly-mortgage-terms/