The number of landlord mortgages available for shot lets has increased by a quarter in just a month as lenders seek to cash-in on investor demand for ‘Airbnb mortgages’.

Moneyfacts has told LandlordZONE that the number of landlord mortgage products has risen from 60 to 74 since the beginning of July and that 14 providers have them on offer, up from nine.

Of these, 39 are holiday-let specific products, with 22 fixed rates averaging 3.48%, and 17 variable rates averaging 3.09%. However, this is still down on the number of products on the market back in March when 162 were up for grabs.

Mortgage lender West One is one of the lenders launching a new mortgage for landlords wanting to get in on the act.

- Advertisement -

Its new buy-to-let product is for holiday lets – including Airbnb – as well as houses, leasehold flats and maisonettes, new-builds, HMOs and Multi-Unit Freehold Blocks (MUFB).

Five-year fixed

The five-year fixed rate loan has a maximum 75% LTV with three-year early repayment charge period. Rates start at 4.04% on loan sizes from £50k to £1,000,000 with terms from five to 30 years.

MD Andrew Ferguson says its refreshed product range includes the limited edition mortgage which will meet an increase in demand for stay-at-home rentals.

“This product fills certain criteria for both standard and specialist landlords looking to expand their portfolios,” he says.

“The range covers individual and limited company applications, across standard and specialist cases, including HMO/MUFB, ex-pat and holiday lets, which have seen a resurgence since the Covid lockdown was lifted.

“The added flexibility within the five-year fixed rate with three-year ERC product is something our broker partners have been asking for, so I anticipate strong demand for this.”

Read more about Airbnb.

1 COMMENT

  1. These lenders are part of a criminal conspiracy.
    They must surely know that most freeholders do not permit shirt term letting.
    Lenders rarely allow short term letting if a Freeholder doesn’t permit.

    Do lenders ever check with freeholders and insurers that short term letting is permitted.

    Short term letting should not be legal unless the owner resides in the property.
    FHL mortgages permit short term letting.
    I’m not sure these lenders appreciate that they are facilitating fraud.

    Of course there must be some Freeholders that permit short- term letting……………but not many!

    The facts are that apart from some Council limitations the vast majority of short term letting is fraudulent.

    Certainly
    Lenders
    Insurers
    Freeholders
    Leaseholders
    Councils.

    Are kept in the dark.

    Most of this fraud is in flats.

    I can assure LL that very few block insurance policies covers short-term lettings.
    I’m sure AirBnB clients would be delighted to know they are staying in uninsured properties.
    No public liability insurance etc.

    Indeed if AirBnB made it a requirement that all hosts had to provide confirmation that they could legitimately operate their property for short-term letting I could assure those clients that mist AirBnB listings would disappear

    Mass fraud in the short-term lettings market is endemic.
    Really their needs to be a LL licence system for all types of lettings.

    At least then

    Lenders
    Freeholders
    Insurers
    Councils
    Leaseholders would all know that a listing was legal.

    Currently it’s like the Wild West out there in short-term letting land!!

LEAVE A REPLY

Please enter your comment!
Please enter your name here