Suffolk Building Society has updated its holiday let mortgage criteria to consider applications from landlords who intend to market and let their properties using Airbnb.

The society becomes one of only a handful of lenders accepting mortgage applications on Airbnb holiday lets.

Suffolk confirmed that the change applies to all of its 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 its existing holiday let criteria, the society also confirmed it will undertake a rental coverage assessment or interest coverage ratio (ICR) calculation against the known or anticipated letting value.

Landlords wishing to market their properties via Airbnb will be subject to the Society’s existing holiday let lending criteria, and owners may occupy the mortgaged holiday let property for personal use for up to 60 days per year.

“The popularity of domestic holidays in the wake of the pandemic looks set to continue, as costs of holidays abroad increase, restrictions persist, and rules around isolation continually change, making travel abroad more hassle than it's worth for many,” commented the head of intermediary relations at the society, Charlotte Grimshaw.

“This, coupled with the way lockdown has altered people’s lives, from welcoming new pets, to a better appreciation of the British countryside, all make holidaying in the UK appealing.

“Airbnb is increasingly important for holiday let landlords too and we want to support this market by allowing Airbnb landlords to apply for a new mortgage or remortgage with us.

“We also understand that many holiday let landlords take many routes to market, advertising their properties on several sites at once to maximise their potential income. By making this change we are able to support this entrepreneurialism and help our landlord borrowers reach a wider customer base.”

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