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NatWest rolls out new mortgage terms for more ‘flexbility’ to help customers with costs

NatWest has announced it will introduce new Airbnb-friendly mortgage terms that embrace home sharing in a move to increase flexibility for customers.

The updated terms mean that new and existing customers can share a spare room or their entire home with guests “with confidence”.

This change may provide a welcome boost to new and existing mortgage holders struggling with higher interest rates. It offers the opportunity to rent their property on a short-term basis through platforms like Airbnb to help make ends meet.

Airbnb allows people to use their homes – typically their greatest expense – to boost their income and help afford their homes.

According to NatWest, the typical host in the UK earns almost £5,500 a year on Airbnb – enough to cover 69 percent of the average annual mortgage payment.

Lloyd Cochrane, head of mortgages at NatWest commented: “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 home-sharing.”

As families face the continued prospect of trying to keep pace with high interest rates, research from Airbnb suggests over three-quarters of homeowners (77 percent) are thinking about ways to supplement their income.

Nearly half of homeowners (47 percent) would list their home on a short-term lettings platform in order to cover the increase in monthly payments, but 40 percent of borrowers say their mortgage provider won’t allow them to rent out their home or spare room on Airbnb.

Airbnb’s general manager for UK and Northern Europe Amanda Cupples, 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 percent 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.”

New and existing NatWest customers will be able to benefit from the provider’s updated terms, as long as they adhere to conditions set out by NatWest, such as up to 90 nights in a rolling 12-month period and only renting out a room with an approved platform, like Airbnb.


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