Airbnb Mortgages: Unlocking Financial Opportunities | LDN Finance

Airbnb Mortgages

Do you have dreams of becoming an Airbnb UK ‘superhost’? Do you plan to buy a property to rent out on a short-term holiday let basis? Perhaps you’re considering renting out rooms in your current home? However you plan to explore your Airbnb options, it’s important to ensure you have the correct type of mortgage in place.

This article covers all the important aspects of Airbnb mortgages, including what type of mortgage you’ll need if you plan to use the property as an Airbnb investment.

Can you get a mortgage for an Airbnb property?

Yes, the good news is that it is possible to get a mortgage for a property that you intend to use for Airbnb, but this specific setup requires some careful thought around exact usage. For example, it’s important to consider:

  • Do you plan to rent the whole house or individual rooms?
  • Are you planning to live in some part of the property whilst renting out rooms?
  • Do you need ‘consent to let’ from your existing lender if you already have a mortgage?
  • How many days, weeks, or months are you thinking about renting the property on Airbnb?

These are only available with certain mortgage lenders and typically with some restrictions, so it is vital you speak to an intermediary who specialises in this area when assessing your mortgage options.

Eligibility criteria for renting on Airbnb for a mortgage

The criteria for Airbnb mortgages varies and will depend on what type of mortgage you use to start letting your rooms or house out on Airbnb. Here are a few examples of some of the key areas that could make a difference:

Renting out rooms/the whole house: Some lenders may have restrictions such as the maximum number of days or rooms you can rent, so this will potentially dictate which type of mortgage you can secure.

Property type: If you have a property with distinct or unique features (for example, like the yellow submarine in the Airbnb advert!) some lenders will take more convincing to accept the added risk of a ‘non-standard construction’ house being let on Airbnb.

Deposit: For a buy-to-let (BTL) Airbnb mortgage, you’ll most likely need a larger deposit than you do for a standard residential mortgage. Despite this, you can still secure a competitive mortgage no matter the size of your deposit. The key is to making sure you seek expert help to secure a deal with a lender who can find you the most suitable solution.

Types of mortgages for Airbnb

The type of mortgage products suitable for Airbnb use will depend upon your answers to the questions above. Potential options you could consider include:

Buy-to-let (BTL) mortgage

Typically, this is the most common type of mortgage used for Airbnb if you plan to rent the whole property. However, be mindful that some BTL lenders may place restrictions in place. This could be a cap on the maximum number of calendar days you can rent the property for, or specifying that it must be holiday lets only. These mortgages would typically be specialist holiday let BTL mortgages, most standard BTL mortgages will not allow short-term letting out of the property.

Airbnb with a residential mortgage for room rental

Another mortgage solution is a residential mortgage. Using this type of home loan is typically used if you live in the property and plan to rent specific rooms. Like BTL mortgages, some lenders will put rules on the number of days or rooms you can rent. In some cases this is up to 90-120 days each year, but can vary from lender to lender. It’s also really important to notify your lender for consent before starting to rent out your rooms.

Holiday let mortgages

Some lenders will also allow you to rent a property out on Airbnb if you have a specific holiday let mortgage. A holiday let mortgage is an alternative product for those looking to rent out their property on a short-term basis, often as a business generating additional income. Providing you meet the eligibility criteria, holiday let mortgages which can involve earning above a certain income and only accessing loans within a specified price range.

Not sure whether you need a BTL or holiday let mortgage? Check out our article which explains some of the differences.

What do I need to get an Airbnb mortgage?

When securing a mortgage for an Airbnb property, it is important to prepare the necessary documents as you would for a standard mortgage application process. This includes identification proof, income statements, tax returns, bank statements and details about any outstanding debts or assets.

In addition, lenders will want to see estimated rental income for the short, medium and long term. This will help experts with the advice process, ensuring you can secure the most suitable product for your set-up.

Keen to learn more about securing a mortgage for your Airbnb property? Speak to our expert team on 020 3903 9875 or email for more information.