Fair Rents (Scotland) Bill or Artificial state manipulation of free market rent?10:34 AM, 6th November 2020
About 4 weeks ago 36
AirBNB mortgages are now available from Together Money who have have informed our partner brokers that they will consider commercial mortgage terms for investors that intend to rent their properties using Airbnb.
This is separate to their Buy to Let range where they require a standard AST as they consider the Host (the owner of the property) to have a commercial contract with Airbnb. This is also different to a Holiday let style of lending.
The interest rates are higher, but there are no other lenders we know of actively marketing this as an option with no minimum term of lease required.
For purchases the Maximum Loan to Value available is 75% and the minimum discounted interest rate is 7.90%. for 12 months reverting to the nominal rate of 9.90%. The arrangement fee is 3% (min £780) with an 8 year Early Repayment charge on a sliding annual scale of 8%, 8%, 8%, 5%, 4%, 3%, 2% and 1%.
Remortgage maximum LTV is however only 60%.
This is certainly not cheap, but it is an interesting development in the market and definitely horses for course in terms of how appropriate it will be for lenders.
Minimum loan size is £26,000 and minimum value of the property must be at least £75,000.
There are no minimum income requirements, but the Net Profit times by 50% must exceed all loan repayments.
I have only seen basic lender criteria and not worked with Together before so if you think this might be helpful please put a request in on the contact form below and I will get one of our qualified team to give you a call and talk it through further.
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