NatWest has introduced Airbnb-friendly mortgage terms so new and existing customers can homeshare.
The lender said that the updated terms for platforms like Airbnb mean customers can share a spare room or their whole home with guests and will offer a “welcome boost” to new and existing mortgage holders struggling with higher interest rates and wishing to rent their property short term.
A typical host in the UK can earn around £5,500 per year on Airbnb, which could cover 69% of the average annual mortgage payment.
This could offer a “significant boost to families and households who are struggling to make ends meet”.
New and existing customers can benefit from the lender’s updated terms if they keep to conditions set out by the bank. This includes up to 90 nights in a rolling 12-month period and only doing so with an approved platform.
NatWest said that by “allowing people to leverage their properties as an additional, flexible income stream, this update broadens the path to homeownership”.
“The new terms acknowledge that for many, the journey to owning a home is one that can be navigated with the help of diverse income sources like Airbnb. It’s a progressive step that aligns with the realities of the modern sharing economy and the evolving needs of today’s homeowners and aspiring homeowners alike,” it said.
Lloyd Cochrane (pictured), head of mortgages at NatWest, said: “At NatWest, we want to support our customers by widening their options through our proposition, including sharing their homes through sites such as Airbnb. By updating our policy, this will offer more flexibility and allow more people to take up the benefits of homesharing.”
Amanda Cupples, general manager for UK and Northern Europe at Airbnb, said: “NatWest’s Airbnb-friendly mortgage terms are a welcome boost to families facing the continued prospect of higher mortgage rates.
“With two-thirds of UK Airbnb hosts saying that the extra income helps them afford the rising cost of living, the act of occasionally renting out your home on Airbnb can help cover up to 69% of the expenses associated with an average UK mortgage. We urge other lenders to follow NatWest’s example and help homeowners to boost their income to keep pace with rising costs.”
Anna is currently the deputy editor for Mortgage Solutions and editor for Specialist Lending Solutions. She has worked as a journalist since 2019, having secured her Gold Standard NCTJ diploma from News Associates in a fast-track six-month course.
She started her career as a report at specialist publication The Insurance Insider covering a wide range of areas before joining Mortgage Solutions and Specialist Lending Solutions in 2021.
In her role, she helps put together and structure the news agenda for the day and writes up press releases, reports, interviews, analyses and exclusives across both titles. She also commissions blogs for Specialist Lending Solutions and hosts online masterclasses and in-person events across the business.
She has been shortlisted for three journalism awards, which include BIBA Journalist and Media Awards Scoop of Year Award in 2020, Headline Money Mortgage Journalist of the Year Award (B2B) in 2022 and 2023.
Prior to being a journalist, Anna worked in ecommerce across Snow + Rock, Cycle Surgery and Runners Need websites, and before that worked at specialist financial PR firm Rostrum.
In her spare time, Anna enjoys reading, seeing live music, and cooking for friends and family. When she gets a chance, she also enjoys hiking, skiing and indoor rock climbing.
