What kind of mortgage can I take out? Investement or Second Home?

[Justin122]

I am wanting to host using airbnb, but am wondering if it would be considered mortgage fraud if I use a second home mortgage instead of an investment mortgage. I want to use the home for my family, but also want to use airbnb to help supplement the monthly expenses. My thought is that there are probably a lot of people committing mortgage fraud if everyone using airbnb were required to have an investment mortgage. Please share your answers/thoughts. Thanks.

[Helen3]

I don't know how it works in the  US, but when you buy in the UK, what's important is that you demonstrate your ability to pay.

That means through your regular income - savings, employment, investments etc you demonstrate you have the money to afford repayments.

I don't think you can include BNB income as it's not guaranteed.

Best to speak to a mortgage broker.

The important thing is to do your sums, so you are confident you can afford repayments whether or not you are able to let it out through Airbnb (and of course that where you are buying allows Airbnb).