Mortgage brokers have been warned they could be kicked off lenders’ panels if their clients use their buy-to-let properties as holiday lets.

Advisers have been urged to ensure they provide clear guidance about the terms of BTL mortgages or risk being a party to fraud, as many loans come with terms preventing clients from using their property as a holiday let.

The warning comes after a boom in the holiday rental market as millions of Britons opt for a ‘staycation’ instead of travelling abroad, along with the rise of websites such as Airbnb, which make it easier to let residential properties on a short-term basis.

An analysis by Second Estates, a holiday property management company, revealed average income per booking was up 6.4% in the first four months of 2017, with holiday properties generating double the annual income of residential BTL.

But major lenders have confirmed brokers could be kicked off their panels if their clients are found to be in breach of the contract.

A spokesperson at TSB said: “We expect the brokers on our panel to behave professionally and with integrity. Knowingly making false representation of an application undermines this and would risk ejection from our panel.”