Metro Bank gives borrowers Airbnb boost
Metro Bank is enabling its residential mortgage customers to rent their properties through Airbnb, and similar sites, for up to 90 days a year without prior approval.
This pioneering move is the first of its kind, with most lenders requiring borrowers to contact them for pre-approval if they want to rent out their property. In practice, many mortgage borrowers renting out their home on a short-term holiday basis haven’t sought pre-approval and may have, perhaps unwittingly, breached the terms of their mortgage contract.
The new policy from Metro Bank means that its borrowers can relax in the knowledge that renting out their home via Airbnb or a similar site is allowed as part of their mortgage agreement and doesn’t need any pre-approval, as long as they don’t go over 90 days a year.
Paul Riseborough, chief commercial officer at Metro Bank, said: “At Metro Bank we love what the sharing economy represents and the freedom and collaboration it encourages. Our focus is on making our customers’ lives as straightforward and convenient as possible and we therefore hope today’s news will give our customers the reassurance they need to jump in and take advantage of everything the dynamic sharing economy has to offer”.
James McClure, general manager at UK & Ireland Airbnb, added:”The way people use their homes is changing and this is an exciting step change from one of the UK’s most innovative banks. We hope this triggers further support from the mortgage industry as we work together to provide real economic benefits for people and neighbourhoods.”