Suffolk Building Society has updated its holiday let mortgage criteria and will now consider applications from landlords who intend to market and let their properties using Airbnb, making it one of only a handful of lenders accepting mortgage applications on Airbnb holiday lets.
The change applies to all of the Society’s mainstream holiday let range which offers both a fixed and discounted rate up to 80% LTV with a minimum loan of £75,000, a maximum loan of £1m, and a minimum property value of £100,000 for properties in England and Wales.
In line with existing holiday let criteria, the Society will undertake a rental coverage assessment / Interest Coverage Ratio (ICR) calculation against the known or anticipated letting value. Intermediaries and landlords should note that the known weekly rental income (or anticipated revenue during low, medium, and high season) will need to be provided by an independent lettings agent, rather than Airbnb. The annual rental must provide a minimum of 145% rental coverage based on the initial pay rate +2% or a minimum of 5.5% (whichever is the greater).
Landlords wishing to market their properties via Airbnb will be subject to the Society’s existing holiday let lending criteria.
Owners may occupy the mortgaged holiday let property for personal use for up to 60 days per year.
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