Forced to give up Airbnb because my mortgage lender said no! Uk

Level 2
8,330 Views

I've just been to my mortage lender (Hallifax) to change my mortgage ( I'm removing my daughters name) and they asked if I had any further income. So.....thinking it would help boost my chances of getting the mortgage in my own name, I mentioned I did Airbnb. It was obvious straight away that that was the worst thing I could ever have done. I've never told the Halifax about hosting a room as I genuinely didint realise I had to.  They have basically told me that regardless of if my daughter is on the mortgage or if I apply for it myself they wont agree to it because of Airbnb. Does anyone know how to get round this? Apart from the money side of it all - I dont make thousands and thousands - I love meeting all the different people that come to stay. Im absolutely gutted that I opened my mouth and mentioned it. I've read somewhere about Admiral insurance being ok for Airbnb but does anyone know any mortgage companies that can help? I soooooo dont want to give it up!!! Thanks for any help that anyone can give me 🙂

7 Replies

Re: Forced to give up Airbnb because my mortgage lender said no! Uk

in
Leeuwarden, The Netherlands
Level 10

@Pauline32,

Doing Airbnb is in general considered as a risk for a mortgage lender. Mostly the mortgage terms mention also renting or commercial activities etc. are not allowed. I offcourse don't know about situation in Scotland. In my country officially you need permission from the mortgage lender or take a special "business" mortgage. A lot of people are "doing Airbnb" without even knowing it's not allowed. Same for insurrance, they do not cover damages created by Airbnb guests. Insurrance companies will end the excisting insurrance policy of a house if they would know about the owner "doing Airbnb" !

There are a lot of threads about the subject in this community.

Bes regards,

Emiel

Re: Forced to give up Airbnb because my mortgage lender said no! Uk

Level 2

Hi Emiel, thanks for getting back to me!

The bank told me about the insurance side of it too today! Im trying to find any mortgage lenders here who will allow me to rent out my room and Im hoping there will be. They also did mention the 'business' mortgage but apparently my bank won't even cover Airbnb as a business mortgage. Its so sad cos ive met so many lovely people from all over the world and I've thouroughy enjoyed it 😞

Fingers crossed theres something out there that will be suitable cos surely everyone cant be 'winging it' 

Re: Forced to give up Airbnb because my mortgage lender said no! Uk

in
Palm Harbor, FL
Level 4

The visitor ratings are completely fake and scammers are rewarded with refunds for trashing homes.  It's no surprise AirBnb is considered high risk when at least certain users are protected from accurate reviews which could warn other potential victims.

 

I gave Joey 1 star for trashing my home so he could take pictures and demand a refund.  His review is published on my profile while my review is concealed along with other reviews which don't give him 5 stars.

 

https://www.airbnb.com/users/show/184626094

 

There is no way Joey hasn't scammed other hosts but his profile only shows 5 star reviews.

 

https://www.airbnb.com/users/show/184626094

Re: Forced to give up Airbnb because my mortgage lender said no! Uk

in
Leeuwarden, The Netherlands
Level 10

@Pauline32,

You never should have mentioned Airbnb to Halifax. Find another mortgage lender and do not mention the Airbnb thing. But always be aware you are taking some kind of risk with Airbnb guests in your house (like most people doing Airbnb), but what is life worth without any risk ? I have a business mortgage and i am allowed to rent rooms. My insurrance also covers renting of rooms, but NOT the Airbnb thing ! There is not even an insurrance available for it in my country, as far as i know ! But i continue doing Airbnb, as i like it and it generates substantial income. Maybe the mortgage/insurance world is still not ready for the shared economy. ;>)

Kind regards,

Emiel

Re: Forced to give up Airbnb because my mortgage lender said no! Uk

in
Thorpe Arnold, United Kingdom
Level 2

Hello, @Pauline32 

 

Would you mind telling us what is the outcome in your situation?

 

I was planning to buy a property in Scotland and to offer a room through Airbnb, as well. At the moment I am researching what needs to be done in order for us to be completely covered, yet everything I find online is uncertain :-??

 

Thank you!

Re: Forced to give up Airbnb because my mortgage lender said no! Uk

in
Somersham, United Kingdom
Level 1

Lloyds own the Halifax Building Society and they allow airbandb up to 16 weeks of the year. 

Just thought i, d mention this. Do a little research on line. Good luck 

Re: Forced to give up Airbnb because my mortgage lender said no! Uk

in
United Kingdom
Level 2

Halifax send a letter about if I am renting without permission, called them they straight away asked if I am doing Airbnb, which I haven’t mentioned, but they said you have to go to a local branch in Scotland with council tax bills showing that I am not doing Airbnb ……. What’s are the options is there any mortgage provider allowing Airbnb? 

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