13 July 2024 , 16:45
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Property owners may not be aware that renting out your home can potentially be against the rules of your mortgage agreement - here is what you need to know
NatWest has made a major change to its mortgage rules so that property owners can rent out their homes for short-term use.
The shake-up means new and existing customers will be able to let out their home for up to 90 nights each year, so long as they use an approved lettings platform like Airbnb. Property owners with a residential mortgage may not be aware that renting out your home can potentially be against the rules of your agreement with your lender.
Different lenders have different rules in place, so check your mortgage details carefully. For example, Nationwide allows you to let out your home for up to 18 weeks a year, while the limit is 16 weeks a year for Lloyds Bank customers. Barclays and Metro Bank give you 90 days a year, with a limit of 30 consecutive days, and Santander charges you a £295 if you want to rent your property.
Danny Belton, Head of Lending at Mortgage Advice Bureau, said: "It can depend on how long you have been with the lender, how long you’ve held the mortgage for, or if you are planning to rent the whole property or just a room. If you intend to let your property, be it through AirbnB or another letting system, you can apply for a ’consent to let’.
"This is basically an agreement from your lender that they are happy for you to rent the property, though it’s worth noting it can come with a fee. This isn’t an area to try and fly under the radar. Letting your property without your lender’s consent can break your mortgage contract. As always, it’s best to speak to your lender before you do anything."