TSLE2020: Lenders will target landlords breaking mortgage terms with Airbnb – HTB

Speaking at The Specialist Lending Event 2020 at Sandown Park, HTB sales director of specialist mortgages Alex Upton said this was a growing area of concern.

Landlords have been choosing more diverse operations to offset tax and regulation changes with lenders increasingly supporting these.

However, landlords can get into hot water if they break the terms of their mortgage.

“I agree there are a lot of landlords Airbnb-ing their property, not understanding or just thinking they are getting away with it, and I think that’s going to come more and more onto lenders’ radars shortly,” Upton said.

She noted that only doing unregulated lending it would not be a problem for HTB, but she expected lenders to start scrutinising the practice more closely.

“From a specialist lender’s point of view that [scrutiny] should be happening, because these are higher risk assets now – running a short-term let is not easy, it’s not as easy as just putting someone in on a six month assured shorthold tenancy (AST), there’s a lot of cost.

“So yes lenders should be looking at this – if they’ve got any inkling that its being done on their properties then they should be investigating that and I think we’ll see that coming through.”

The Specialist Lending Event 2020 continues this week with free registration still available for the events at York and Liverpool.