Metro Bank says its residential mortgage customers are now allowed to rent their properties through Airbnb and similar sites for up to 90 days a year without prior approval.
Until now it has normally been the case that owners of mortgaged properties have required the consent of their lenders before letting out through Airbnb and similar platforms - although it is a moot point as to how many owners actually sought formal agreement.
“We love what the sharing economy represents and the freedom and collaboration it encourages. Our focus is on making customers’ lives as straightforward and convenient as possible and we therefore hope today’s news will give customers the reassurance they need to take advantage” explains Paul Riseborough, the bank’s chief commercial officer.
“We hope this triggers further support from the mortgage industry as we work together to provide real economic benefits for people and neighbourhoods” according to James McClure, Airbnb’s general manager in the UK and Ireland.
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90 days a year - so just occasional lettings then. Not the kind of serviced accommodation business that some AirBNBers are operating.
This also saves Metro Bank from pursuing those borrowers to get a consent in place only to find they have not let through one of these organisations or the borrower has stopped doing this. MB then has spent time money and effort on a fruitless exercise.
This announcement was probably cheaper to issue than a few letters to borrowers.
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