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Council Regulations: Local council regulations can vary significantly. Some areas may have restrictions on the number of nights you can rent out your property annually without requiring planning permission. For example, in London, you can rent out your home for up to 90 nights in a calendar year without needing to apply for planning permission. Renting for longer periods may require a change of use application.
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Mortgage Lender’s Permission: If you have a mortgage on your property, you need to check with your mortgage lender to ensure that renting out your property on Airbnb does not breach your mortgage terms. Some lenders may require specific types of mortgages or explicit permission to use your property for short-term lets.
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Insurance: Standard home insurance policies may not cover activities associated with short-term letting. It’s important to check with your insurance provider and ensure you have appropriate coverage that includes public liability and damage to property.
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Tax Implications: Income generated from Airbnb is subject to taxation. However, you may be eligible for the Rent a Room Scheme, which allows you to earn up to £7,500 per year tax-free from letting out furnished accommodation in your home. If you earn more than this threshold, you’ll need to complete a tax return.
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Leasehold Agreements: If your property is leasehold, you should also check the lease terms. Some leases prohibit subletting or using the property for commercial purposes, including short-term rentals.
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Neighbourhood Considerations: It’s also good practice to consider how your Airbnb activity affects your neighbours, especially in terms of noise and the use of shared spaces.
Airbnb Mortgages
Up to 80% Loan to Value (LTV)
Residential and Commercial options
No experience required
Whether you’re just starting out as an Airbnb host or expanding your short-term rental portfolio, finding the right Airbnb mortgage is crucial to maximising your returns. Navigating Airbnb and mortgages can be complex, as many traditional lenders place restrictions on short-term letting. At Mortgage Lane, we specialise in helping both Airbnb landlords, or homeowners renting a room/outbuilding on Airbnb find tailored lending solutions that work for their specific needs. We work with specialist mortgage for Airbnb lenders who not only allow Airbnb use but also accept projection letters to showcase potential rental income. For more established commercial Airbnb operators, we can even arrange for your Airbnb property to be valued as an investment for trading schemes, supported by financial accounts, giving you access to more competitive rates and flexible terms. This page provides everything you need to know about securing an Airbnb mortgage, from understanding lender criteria and eligibility to tips on improving your application and managing your financing effectively. Whether you own a single property or multiple Airbnb rentals, we can connect you with lenders who support your short-term letting goals.
Airbnb mortgage criteria
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Do I need a buy-to-let mortgage for Airbnb?
Not if you live there!
Renting Part of Your Property
If you only plan to rent out part of your primary residence on Airbnb, such as a single room, annex, or outbuilding, while you continue to live in the home, you generally do not need a full buy-to-let mortgage for Airbnb. In many cases, your existing residential mortgage may cover this arrangement — provided your lender’s terms allow it. However, it’s essential to review your mortgage agreement or contact your lender to confirm that short-term letting is permitted. Some lenders allow occasional Airbnb hosting as long as it does not constitute your main source of income or require converting the property into a commercial rental.
Lenders That Allow Airbnb Rentals
Some lenders are more flexible with homeowners who want to earn extra income through Airbnb and mortgages without switching to a buy-to-let product. Examples include:
- Barclays – Allows homeowners to rent out their property or parts of it on a short-term basis under certain conditions, without requiring a switch to a full buy-to-let mortgage.
- Principality Building Society – Offers flexibility for part-time Airbnb hosting, enabling homeowners to unlock the earning potential of their property without a complete mortgage change.
- Metro Bank – Recognises the growing popularity of Airbnb and supports homeowners who want to generate income through occasional short-term rentals.
Full Property Rentals on Airbnb
If you plan to rent out your entire property on Airbnb for the majority of the year, you will most likely need a buy-to-let mortgage or a specialist mortgage for Airbnb. Buy-to-let mortgages are designed for properties used primarily as rental investments and come with terms to accommodate rental income, tenant turnover, and the additional risks associated with holiday lets or short-term rentals.
Buy-to-Let and Commercial Airbnb Mortgages
For landlords operating full-time Airbnb properties, a buy-to-let Airbnb mortgage is often the most suitable solution. These products are designed for investment properties that are let on a short-term basis, providing flexibility for landlords who want to maximise rental yields from the holiday let and Airbnb market. Lenders will typically assess projected or historic Airbnb income when determining affordability, and in some cases, we can arrange mortgages that factor in Airbnb projection letters to demonstrate potential earnings.
For larger or more established Airbnb operations, particularly where the property is classed as C3 (residential) or C1 (guest house or hotel use) – the mortgage may fall under a commercial lending structure. In these cases, the property is valued as a business based on profitability, with lenders reviewing trading accounts, occupancy rates, and overall income potential. Mortgage Lane works with specialist commercial lenders who understand the short-term rental market and can provide commercial Airbnb mortgages tailored to the specific financial and operational profile of your property. Whether you’re seeking to refinance an existing Airbnb portfolio, purchase a new property, or expand into a commercial-level short-term rental business, we can help you access competitive rates and lending options suited to both buy-to-let and commercial Airbnb ventures.
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If you aren’t sure what you need, request a call back from one of our expert mortgage advisors!
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What is an Airbnb mortgage?
An Airbnb mortgage refers to a mortgage product specifically tailored for property owners who intend to rent out their property or a portion of it through Airbnb. Unlike traditional mortgages, an Airbnb mortgage considers the potential income generated from short-term rentals as part of the affordability assessment. This can be particularly advantageous for borrowers whose rental income plays a significant role in their financial profile.
What makes Airbnb mortgages distinct:
- Income Consideration: Lenders may allow borrowers to use projected or actual Airbnb income towards affordability rather than the AST income. This can help increase the borrowing amount compared to traditional lending assessments based solely on personal income or long-term rental agreements.
- Product Variety: These mortgages might come in various forms, such as buy-to-let mortgages (in regions where these are available) that are adapted for short-term rental activity. There could also be specific products designed for refinancing purposes or purchasing new properties with the intention to rent them out via Airbnb.
- Eligibility and Terms: The eligibility criteria for an Airbnb mortgage might include a review of the property’s location, its rental history, and the borrower’s overall creditworthiness. The terms of the mortgage—such as interest rates, down payment requirements, and loan duration—can vary based on how extensively the property will be used for Airbnb hosting.
- Regulatory Compliance: It’s also important for borrowers to ensure their Airbnb operation complies with local laws and regulations concerning short-term rentals, as this can impact mortgage approval during underwriting.
Airbnb mortgages are designed to accommodate the unique dynamics of hosting on Airbnb, providing a more flexible approach to property investment financing for hosts.
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How much can I borrow on an Airbnb mortgage?
When determining how much you can borrow on an Airbnb mortgage, the loan amount varies based on the lender’s criteria and the type of mortgage:
Standard Buy-to-Let Mortgages
- Loan-to-Value (LTV): Up to 80%.
- Income Assessment: Based on Assured Shorthold Tenancy (AST) rental figures.
Specialist Buy-to-Let Mortgages
- LTV: Up to 75%.
- Income Assessment: Based on actual or projected Airbnb income, considering low, medium, and high scenarios.
Commercial Mortgages
- LTV: Typically up to 75%.
- Income Assessment: Stressed against the actual Airbnb trading income.
Standard buy-to-let offers higher LTV but may underrepresent Airbnb’s earning potential. Specialist and commercial options, while featuring lower LTVs, may better reflect Airbnb income, potentially allowing for greater borrowing based on these projections.
Airbnb mortgage rules UK
When investing in properties for short-term rental, a buy-to-let (BTL) mortgage is often the starting point for most borrowers. However, navigating the lending landscape can be complex, particularly when affordability is assessed against projected Airbnb income rather than traditional rental figures. This is where understanding the difference between tier-one lenders and specialist buy-to-let lenders becomes essential.
Standard Buy-to-Let Airbnb Mortgages
Tier-one lenders typically offer standard buy-to-let mortgages where affordability is assessed using the property’s potential rental income under an Assured Shorthold Tenancy (AST). In other words, the lender looks at the expected monthly rent if the property were rented out on a long-term basis rather than as a short-term Airbnb rental. For properties in areas with strong rental demand, small Airbnb units can often meet these criteria. Standard buy-to-let mortgage rates are generally lower, with interest rates currently around 5.5%, making them an attractive option when the AST figure aligns with the lender’s affordability calculations.
Specialist Buy-to-Let Airbnb Mortgages
In high-tourist or seasonal areas, AST figures often fail to reflect the true earning potential of Airbnb rentals, which can lead to difficulties when applying for standard products. This is where specialist buy-to-let lenders come in. These lenders understand the unique income patterns of short-term rentals and can stress the mortgage against a broader range of figures, often considering a 5-year product pay rate or blended income projections (low, medium, and high seasons). Specialist buy-to-let mortgages usually come with slightly higher interest rates, often around 6.19%, due to the perceived risk of variable Airbnb income. However, they offer far greater flexibility for borrowers who want to capitalise on the higher yields associated with short-term letting.
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Commercial Mortgages for Airbnb
For properties that are primarily used as Airbnb units and do not fit into the traditional or specialist buy-to-let categories, Airbnb commercial mortgages might be appropriate. These mortgages consider Airbnb income with even greater flexibility and are typically used for properties operated more like a business than a standard rental. The rates for commercial mortgages are higher, reflecting the increased risk and management involvement, typically around 6.89%.
For Airbnb hosts looking to finance their property investments, it’s crucial to understand the different mortgage options available and choose one that aligns with the income potential and risk profile of the property. While standard buy-to-let mortgages offer lower rates, they may not always capture the full income potential of Airbnb properties, making specialist buy-to-let or commercial mortgages viable alternatives for maximising investment returns.
Certain Airbnb rental scenarios are more suited to commercial mortgage products, especially when the operation scales to a more business-like approach. This includes properties that have established trading accounts for over a year, which may qualify for a going concern valuation, or market value 1 (MV1). This type of valuation considers the property as a business entity, evaluating its potential to generate income beyond the standard residential use.
Key Points:
- Going Concern Valuation: Properties with at least one year of trading accounts can be assessed as ongoing businesses. This approach considers the full income-generating potential of the property, making it a viable candidate for commercial lending.
- Property Class: Interestingly, for a going concern valuation, the property does not necessarily need to be in the C1 use class (hotels, guesthouses, and bed and breakfast accommodations). It can be classified as C3 (residential dwellings) or simply residential. This flexibility allows property owners who operate Airbnb rentals within their residential properties to potentially qualify for commercial mortgages based on their business’s financial performance.
- C1 Class and Airbnb: Properties categorised under the C1 class, such as apart-hotels, are also generally well-received by commercial lenders when used for Airbnb purposes. These properties are typically designed to accommodate short-term guests, making them an ideal fit for Airbnb operations. The transition to Airbnb for such properties is usually straightforward and not considered problematic by commercial lenders.
Airbnb mortgage experience not required
Newcomers to the Airbnb market are not necessarily precluded from obtaining a mortgage. Many lenders offer products designed for first-time Airbnb hosts. These products are typically structured to help new entrants get started, albeit often with more conservative terms. For example, they might come with lower Loan-to-Value (LTV) ratios and slightly higher interest rates to offset the perceived risk associated with inexperienced operators.
Benefits of Experience
For borrowers with a track record of managing Airbnb properties, the mortgage landscape looks considerably different:
- Access to More Products: Experienced Airbnb hosts can access a wider array of mortgage products. Lenders view experienced borrowers as lower risk due to their proven ability to generate and manage rental income effectively.
- Better Rates: With experience, borrowers often qualify for more competitive interest rates. Their proven success and reliability can translate into cost savings on borrowings.
- Higher LTV Options: More experienced operators may have access to higher LTV products, allowing them to leverage more significant amounts of financing relative to the property’s value. This can be crucial for expanding operations or optimising capital structure.
While novice Airbnb hosts can certainly find mortgage products to suit their initial needs, experienced hosts benefit from enhanced options that reflect their established ability to manage property rentals effectively. This differentiation in the market underscores the value of building a track record in the Airbnb business, positioning borrowers to take advantage of better financial terms and grow their property portfolios more aggressively.
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Airbnb mortgage Frequently Asked Questions
An Airbnb mortgage is a type of mortgage product designed for properties that are rented out on a short-term basis through platforms like Airbnb or other holiday let services. Unlike standard residential or buy-to-let mortgages, which are typically structured for long-term tenants, an Airbnb mortgage takes into account the unique income patterns, seasonal fluctuations, and higher rental yields that come with short-term letting.
These mortgages can be arranged through specialist buy-to-let lenders or, for larger operations (such as guest houses or multiple units), through commercial lending products. Some lenders will assess affordability based on projected Airbnb income, supported by projection letters, while others may use standard Assured Shorthold Tenancy (AST) rental figures.
We specialise in connecting borrowers with lenders who don’t restrict Airbnb use, ensuring your mortgage product aligns with your short-term rental business model. We also assist homeowners renting out a room or annex on Airbnb, as well as professional Airbnb landlords managing multiple properties.
Airbnb and mortgages can work together, but the type of mortgage you have and how you plan to use the property will determine what’s allowed. Most standard residential mortgages are designed for owner-occupiers and may restrict short-term letting, especially if you plan to rent out the entire property. Some lenders allow occasional Airbnb hosting (such as renting out a room or annex while you live in the home), but you’ll typically need to inform your lender and check that your mortgage terms permit this use.
If your main goal is to run a property as a full-time Airbnb rental, you may need a specialist buy-to-let mortgage, a holiday let mortgage, or even a commercial Airbnb mortgage if the property operates more like a guest house (C1 classification). These mortgage types are structured to reflect the higher rental yields and variable income associated with short-term lets. Certain lenders also allow the use of Airbnb income projections or trading accounts to assess affordability.
We help borrowers find lenders who don’t restrict Airbnb use and can tailor financing to match your short-term rental strategy, whether you’re a homeowner looking to rent a room or a landlord running multiple Airbnb properties.
Whether you need a buy-to-let mortgage for Airbnb depends on how you intend to use the property. If you plan to rent out the entire property on Airbnb as a short-term rental, most lenders will require you to have either a buy-to-let mortgage or a specialist holiday let mortgage, as standard residential mortgages are typically for owner-occupied homes. These mortgage products are designed for rental investments and have terms that account for the higher turnover and variable income associated with short-term lets.
However, if you’re only renting out a room or annex in your primary residence while continuing to live there, you often won’t need to switch to a buy-to-let mortgage. Some residential lenders allow occasional Airbnb hosting, but it’s vital to check your current mortgage terms and obtain permission from your lender to avoid breaching your agreement.
We work with both buy-to-let Airbnb landlords and homeowners to find lenders who allow Airbnb use. We also assist in securing mortgages that consider Airbnb income projections, ensuring you have access to the most competitive products tailored to your letting plans.
Yes, you can often use a property with a mortgage for Airbnb hosting, but only if your lender permits it. Most standard residential mortgages are designed for owner-occupiers and may not automatically allow short-term letting. Some lenders allow occasional Airbnb rentals, such as renting out a spare room or annex, but you’ll typically need to seek permission and ensure this is not classed as a primary income source.
If you plan to rent out the entire property on a regular basis, you will likely need to switch to a specialist mortgage, such as a buy-to-let mortgage or a holiday let mortgage. These products are structured to accommodate short-term rental income and the higher risks associated with multiple guests and variable occupancy. Some lenders also accept Airbnb income projections when assessing affordability, which can help investors qualify for a suitable mortgage product.
We specialise in finding lenders who allow Airbnb hosting, whether you’re a homeowner renting out part of your property or a landlord running a portfolio of short-term rental properties. We can also help you transition from a standard residential mortgage to a tailored Airbnb mortgage that fully supports your rental plans.
Yes, it’s sometimes possible to host on Airbnb with a residential mortgage, but it depends entirely on your lender’s terms and conditions. Most residential mortgages are designed for owner-occupiers and do not automatically allow short-term lets. If you want to list your property (or part of it) on Airbnb, you must check your mortgage agreement and, in most cases, obtain permission from your lender.
Many lenders will allow you to rent out a spare room or annex while you continue living in the property, as long as this is occasional and not your primary source of income. However, if you plan to rent out the entire property on a regular basis, this typically breaches standard residential mortgage terms. In such cases, you may need to switch to a buy-to-let mortgage or a specialist holiday let mortgage that permits Airbnb use.
It’s also important to remember that hosting on Airbnb while on a residential mortgage could affect your home insurance, as standard policies often exclude short-term lettings. You may need specialist landlord or holiday-let insurance to remain properly covered.
We help homeowners find lenders who allow Airbnb rentals, whether it’s just a room in your main home or transitioning to a mortgage product that supports full-time short-term letting.
Specialist lenders offer Airbnb friendly mortgages that recognise Airbnb income. These are lenders like CHL and FHL.
Yes, if you use your property for Airbnb, part of your mortgage interest could be deductible against your rental income for tax purposes.
Airbnb mortgage rates vary by lender but may be slightly higher than conventional mortgages due to the perceived higher risk of short-term rentals.
Yes, commercial mortgages for Airbnb are geared towards properties primarily used as short-term rental businesses and might have different terms and eligibility criteria compared to residential Airbnb mortgages.
NatWest residential or buy to let, does not provide mortgage products suitable for properties used exclusively for Airbnb. Their lending criteria do not cover short-term rental arrangements under typical residential or buy-to-let mortgages. We can help explore alternative lenders who specialise in accommodating the unique needs of Airbnb properties. You can get a NatWest Airbnb mortgage with NatWest commercial which could be suitable for borrowers that have a consistent set up looking for a serviced accommodation mortgage.
Yes, but all mortgage lenders have differing policies when it comes to allowing properties financed with their loans to be used for Airbnb or other short-term rental platforms. The key factors influencing their decisions often include the type of mortgage, the investor’s qualifications, and specific lender guidelines.
- Residential Mortgages: Most traditional residential mortgage lenders have restrictions against using the mortgaged property for commercial purposes, which includes short-term rentals like Airbnb. Doing so without permission may be considered a breach of the mortgage terms.
- Buy-to-Let Mortgages: These are more likely to allow for short-term rentals. However, landlords may need to check if they require a specific buy-to-let mortgage that permits short-term lets, as standard buy-to-let agreements typically assume longer-term tenancies.
- Specialist Products: Some lenders offer mortgage products specifically designed for properties being rented out on Airbnb. These Airbnb mortgages are tailored to address the unique risks and cash flows associated with short-term rentals. They might include terms that consider the potentially higher income but also the greater vacancy risks compared to traditional rentals.
- Permission and Conditions: Even if a mortgage doesn’t explicitly allow Airbnb usage, a lender may grant permission if asked. Conditions might include additional fees or higher interest rates due to the increased perceived risk.
When considering using a property for Airbnb under a mortgage, it’s important to consult with the lender to ensure compliance with the terms of the mortgage and to inquire about any necessary amendments or specific products designed for short-term rentals.
Yes, you should inform your mortgage company if you plan to use your property for Airbnb or other short-term rental activities. Here’s why it’s important:
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Compliance with Mortgage Terms: Many mortgage agreements specify how you can use the property. Using it for short-term rentals without your lender’s consent might violate these terms, potentially leading to penalties or more severe consequences, such as the call for immediate loan repayment.
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Insurance Requirements: Short-term rentals pose different risks compared to standard residential use, and these might not be covered under typical homeowner’s insurance policies. Informing your lender can ensure that you have appropriate insurance coverage, which is often a condition of mortgage agreements.
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Legal and Regulatory Considerations: Your mortgage lender will want to ensure that any rental activity complies with local laws and regulations. Non-compliance can result in legal issues that could jeopardise the mortgage security.
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Potential Changes in Mortgage Conditions: Depending on their policies, some lenders might require a different type of mortgage or adjust the terms of your existing mortgage if you engage in short-term rentals. This could involve different interest rates or additional requirements.
Failing to notify your lender about renting out your property on platforms like Airbnb could be seen as a breach of your mortgage contract. Always check with your lender to understand their specific policies regarding Airbnb and to obtain the necessary permissions or adjustments to your mortgage. This approach not only keeps you compliant but also helps avoid any conflicts or surprises down the line.
do provide financing options that can be used for properties intended for short-term holiday lets, which can include rentals through platforms like Airbnb. Here’s how it works:
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Holiday Let Mortgages: Barclays offers mortgages for holiday lets, which are properties rented out on a short-term basis to vacationers. These can be used for homes listed on Airbnb, under the appropriate conditions set by the mortgage terms.
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Usage of Airbnb: While Barclays does not require specific approval for using Airbnb under a holiday let mortgage, it’s crucial to ensure that the use of the property complies with the terms of the mortgage, which typically covers short-term rentals.
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Mortgage Conditions: When obtaining a mortgage for a holiday let that you plan to list on Airbnb, Barclays will assess factors like projected rental income and borrower eligibility. It’s important to confirm that the expected income from Airbnb meets Barclays’ criteria for holiday let mortgages.
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Regulatory Compliance: As with any mortgage, you must comply with local regulations and planning permissions, particularly if there are restrictions on short-term rentals in your area.
Therefore, while Barclays doesn’t have a mortgage product exclusively labelled as an Airbnb mortgage, their holiday let mortgages can be used for properties listed on Airbnb, provided they meet the necessary criteria and conditions. For the most accurate and detailed information, contacting Barclays directly or consulting with a mortgage advisor would be the best approach.
Yes, you can sometimes list a mortgaged property on Airbnb, but it depends on your mortgage lender’s rules and the type of mortgage you have. Most standard residential mortgages are not designed for short-term letting and include clauses restricting the property from being rented out without prior consent. If you want to Airbnb your home, whether a single room, an annex, or the entire property, you must check your mortgage agreement and, if required, obtain permission from your lender.
For occasional rentals of a room or part of your property, many lenders allow this under a normal residential mortgage, provided it remains your primary residence. However, if you plan to rent out the whole property regularly or operate it as a full-time Airbnb, your lender will likely require you to switch to a specialist mortgage, such as a holiday let mortgage or an Airbnb buy-to-let mortgage, which are specifically designed for short-term rentals.
It’s also essential to have appropriate insurance, as standard home insurance typically won’t cover Airbnb guests. You may need a specialist holiday-let or landlord policy to ensure you are fully protected.
We help homeowners and landlords find Airbnb-friendly lenders and mortgage products that allow short-term letting while ensuring compliance with both lender and insurance requirements.
Yes, some lenders will allow you to use Airbnb income to help qualify for a mortgage, but this is typically limited to specialist buy-to-let or holiday let mortgage lenders rather than mainstream high-street banks. These lenders understand the unique income patterns of short-term rentals and are willing to assess affordability based on either:
- Historic Airbnb earnings, supported by booking statements and accounts, usually covering 12 months of rental history.
- Airbnb income projections, for new or recently converted properties, some lenders accept projection letters from professional management companies to estimate future earnings.
For residential mortgages, most high-street lenders do not accept Airbnb income, as they focus on stable employment income or long-term AST rental agreements. However, for properties intended as a full-time Airbnb or holiday let, specialist lenders will evaluate your ability to repay the mortgage using a combination of high, medium, and low-season income projections.
We work with lenders who not only allow Airbnb income to be used for affordability but also take a flexible view on short-term rental businesses. This means you can leverage your Airbnb earnings to refinance, expand your portfolio, or secure a competitive mortgage.
Yes, you can often rent out your primary residence on Airbnb, but there are specific rules and conditions you need to follow. If you have a residential mortgage, most lenders will allow you to rent out a spare room, annex, or part of your home while you continue to live there, provided you seek permission and comply with the terms of your mortgage agreement. Some lenders, such as NatWest and Halifax, allow homeowners to let their entire property on Airbnb for up to 90 days per year, but anything beyond that may require switching to a more suitable mortgage product.
If you want to rent out your entire primary residence regularly or on a long-term basis, this would typically not be allowed under a standard residential mortgage. In such cases, you might need to obtain consent to let from your lender or switch to a specialist holiday let mortgage or an Airbnb buy-to-let mortgage, which are designed for short-term rental income.
It’s also essential to check local council regulations, as some areas (such as parts of London) have 90-day annual limits for short-term rentals unless planning permission is granted. Additionally, you’ll need the right insurance cover, as standard home insurance usually won’t protect you for paying guests.
We help homeowners navigate the rules for Airbnb hosting, ensuring they have the right mortgage and lender permissions to legally rent out their primary residence.
Yes, you can often rent out your house on Airbnb if you have a mortgage, but it depends on the terms of your mortgage agreement and your lender’s policies. Most standard residential mortgages are designed for owner-occupiers and do not automatically permit short-term letting. You’ll need to check your mortgage conditions and, in many cases, seek permission from your lender before hosting guests on Airbnb. Some lenders may allow occasional Airbnb rentals or short-term lets under certain conditions, while others may require you to switch to a specialist buy-to-let mortgage or a holiday let mortgage if you plan to rent out the entire property regularly.
For homeowners who only rent out a single room or annex while living in the property, many lenders are more flexible, but you must still confirm that your mortgage terms allow it. Failing to obtain permission from your lender could be considered a breach of your mortgage conditions, which may have legal or financial consequences.
We help borrowers find lenders who permit Airbnb hosting, whether you’re renting a room in your home, an outbuilding, or the entire property. We also work with lenders who accept Airbnb income projections to help you refinance or secure a mortgage that aligns with your short-term rental plans.
Lenders like Molo, FHL and CHL are known to permit Airbnb operations under specific mortgage products.
If you have a residential mortgage, some lenders permit occasional Airbnb hosting, such as renting out a room or annex while you continue to live in the property. For example, lenders like Halifax and NatWest allow up to 90 occupied nights per year for Airbnb lets, but you must check your lender’s conditions and obtain consent if required. If you plan to let out the entire property regularly, most residential mortgages will not allow this, and you may need to switch to a buy-to-let mortgage or a specialist holiday let mortgage designed for short-term rentals.
When it comes to buy-to-let mortgages, many mainstream lenders assess affordability based on the rental income a property would earn under an Assured Shorthold Tenancy (AST). This means they are geared towards long-term tenants rather than short-term bookings. However, some specialist buy-to-let lenders are more flexible and will take Airbnb income or projections into account, which makes them a better fit for properties aimed at holiday lets or short-term rental use.
A holiday let mortgage is often the best solution for full-time Airbnb properties, as these products are specifically designed to accommodate short-term letting. Lenders will typically evaluate affordability based on seasonal rental projections, occupancy rates, and the property’s potential income. You will usually need a larger deposit, often around 25–30%, and interest rates may be slightly higher compared to standard buy-to-let products due to the perceived risk and income variability.
Lenders are cautious about Airbnb use under standard mortgages because short-term letting can increase risks such as property damage, inconsistent income, and frequent tenant turnover. Many mortgage conditions specify a minimum tenancy period (usually six months under an AST), which is not compatible with nightly or weekly bookings on Airbnb.
It is also essential to get lender consent if you want to list your property on Airbnb, even for occasional lets. Failing to notify your lender could result in a breach of your mortgage terms, which might lead to financial penalties or even a demand for full repayment. In addition, standard home insurance policies often do not cover short-term letting, so specialist landlord or holiday-let insurance may be required. If your property is leasehold, you may also need permission from the freeholder or management company.
An Airbnb buy-to-let mortgage is a type of mortgage specifically designed for properties that will be rented out on a short-term basis through platforms like Airbnb, rather than under standard long-term tenancy agreements. Unlike traditional buy-to-let mortgages, which assess affordability based on rental income from an Assured Shorthold Tenancy (AST), an Airbnb buy-to-let mortgage considers the higher and often variable income generated from short-term lets.
These mortgages are typically offered by specialist buy-to-let lenders or holiday let lenders, as most mainstream banks and high-street lenders have restrictions on Airbnb use. Lenders will usually require a larger deposit (often 25–30%) and may assess affordability using a blend of low, medium, and high-season Airbnb rental projections. Interest rates can be slightly higher than standard buy-to-let rates due to the increased risk associated with short-term letting.
An Airbnb buy-to-let mortgage is ideal for landlords who want to take advantage of the higher yields and flexibility that short-term rentals offer compared to traditional long-term tenants. At Mortgage Lane, we help landlords and investors find the right lenders who allow Airbnb use and consider projection letters or historic booking data to support applications.
The type of mortgage you need for Airbnb depends on how you plan to use the property and how frequently you’ll be letting it out. If you intend to rent out the entire property on a regular basis, you’ll usually require either a specialist holiday let mortgage or an Airbnb buy-to-let mortgage. These products are designed for short-term rentals and take into account the variable income and higher yields associated with Airbnb. Lenders often assess affordability based on seasonal rental projections or historic booking data rather than a standard long-term tenancy (AST) rental figure.
If you are only planning to rent out a spare room or annex in your primary home, your existing residential mortgage may suffice, but only if your lender’s terms allow it. In many cases, you’ll need to seek permission from your lender or obtain “consent to let” for occasional Airbnb hosting. Without this, you risk breaching your mortgage agreement.
For larger or commercial-style Airbnb operations (e.g., multiple units or guest houses), you might need a commercial mortgage, especially if the property falls under C1 classification or is operated as a business. In these cases, the property is valued based on profitability and trading accounts rather than a simple market rental value.
Yes, some lenders and financial websites offer an Airbnb mortgage calculator to estimate how much you might be able to borrow based on your Airbnb income. We do also, above in our page.
Leading Airbnb mortgage lenders include FHL as well as other specialist financial institutions that consider Airbnb income.
Yes, some lenders will allow you to use documented Airbnb income as part of the income assessment for a mortgage application.
Halifax does not offer mortgages specifically for Airbnb. Typically, their standard mortgage products do not support short-term rental activities like Airbnb without potential modifications to the loan type. We can assist you in finding alternative lending solutions that are tailored to accommodate Airbnb rentals such as a serviced housing, or serviced apartment mortgage.
New and existing NatWest customers can take advantage of the bank’s revised mortgage terms, provided they comply with specific conditions. These include limiting rentals to up to 90 nights within any rolling 12-month period and using only approved platforms such as Airbnb.
This update to include Airbnb-friendly mortgage terms is a boon not only for current homeowners but also marks a considerable advancement in making homeownership more attainable. By enabling homeowners to utilise their properties as a flexible, additional source of income, NatWest is expanding the opportunities for individuals to secure and afford their own homes.
For NatWest, the approach to Airbnb and similar short-term rental arrangements is specific and varies depending on the type of property and mortgage:
- Buy-to-Let Mortgages:
- NatWest generally does not allow properties under its buy-to-let mortgages to be used for Airbnb or other short-term rental platforms. This is because their buy-to-let products are designed for longer-term tenancies, which present a different risk profile compared to short-term lets.
- Commercial Holiday Lets:
- For properties classified under commercial holiday lets, NatWest does accept short-term rentals such as Airbnb. These types of properties are specifically intended for holidaymakers and are usually financed under commercial lending criteria, which consider the seasonal nature and turnover of tenants typical to holiday lets.
- Rent-a-Room Scheme under Residential Mortgages:
- NatWest allows homeowners with residential mortgages to participate in the Rent-a-Room Scheme, where a homeowner can rent out a room in their residence. Under this scheme, homeowners can earn a certain amount of tax-free income each year from renting out furnished accommodation in their home, which can include short-term rentals like Airbnb, provided it complies with the scheme’s conditions and the homeowner is living in the property at the time.
For anyone considering using a NatWest mortgage for Airbnb purposes, it’s crucial to directly consult with NatWest or review their latest mortgage terms and conditions. This ensures compliance and helps understand any potential requirements or restrictions specific to their mortgage products.
Whether you need a special mortgage to rent out your property on Airbnb depends largely on how you plan to use the property and the terms set by your current mortgage lender.
Renting Part of Your Property
If you’re considering renting out a portion of your home — such as a room or an annex — while you still live there, you often won’t need a special mortgage. However, it’s crucial to check the terms of your existing mortgage. Some lenders allow occasional short-term rentals under a standard residential mortgage, but others may require you to inform them or approve the arrangement.
Full Property Rentals
For those planning to rent out their entire property on Airbnb, especially if it is for the majority of the year, a more specialist mortgage might be necessary. This is typically a buy-to-let mortgage, which is designed specifically for properties that generate rental income. These mortgages usually have different interest rates, lending criteria, and terms to accommodate the business aspect of continuous tenant turnover and income generation from rentals.
Yes, you can sometimes rent your house on Airbnb with a normal residential mortgage, but it depends on your lender’s terms and conditions. Most standard residential mortgages are designed for owner-occupiers and do not automatically permit short-term letting. If you plan to host on Airbnb — even for a few nights a year — you should check your mortgage agreement and, if required, seek permission from your lender.
If you’re only renting out a room or part of your home while you continue to live there, many lenders allow this as long as it’s occasional and not your primary source of income. However, if you want to rent out the entire property regularly, your normal mortgage is unlikely to cover this, and you may need to switch to a specialist holiday let mortgage or an Airbnb buy-to-let mortgage that permits short-term rentals.
It’s also important to ensure you have the right insurance, as standard home insurance policies often exclude cover for paying guests. You may need a specialist landlord or holiday-let policy to stay protected.
We help homeowners find lenders who allow Airbnb hosting and can guide you through refinancing to a mortgage that supports short-term letting if needed.
The right mortgage for Airbnb depends on how you plan to use the property and the frequency of your short-term lets. If you intend to rent out the entire property on a regular basis, you’ll usually need a specialist holiday let mortgage or an Airbnb buy-to-let mortgage. These products are tailored for short-term rentals and take into account variable Airbnb income rather than long-term tenancy agreements. Some lenders will use Airbnb income projections or historical booking data to assess affordability, which can make them ideal for professional hosts or investors.
If you’re only planning to rent out a spare room, annex, or outbuilding in your own home, your existing residential mortgage may be sufficient — but only if your lender allows short-term letting. Many high-street lenders require you to obtain consent to let for Airbnb hosting, even if it’s occasional, to ensure you’re not breaching your mortgage terms.
For larger or more commercial operations, such as guest houses (C1 classified) or multiple Airbnb units, a commercial mortgage may be required. These are often assessed on the property’s profitability and supported by trading accounts.
Yes, you must inform your mortgage company if you plan to list your property, or part of it, on Airbnb. Most standard residential and buy-to-let mortgage agreements include clauses restricting short-term letting without the lender’s permission. Failing to notify your lender could result in a breach of your mortgage terms, which may lead to financial penalties, higher interest rates, or even a demand for immediate repayment of the loan.
Some lenders are more flexible and permit Airbnb hosting for up to 90 days per year under certain conditions, particularly if you are only renting out your primary residence while you are away. For example, lenders like NatWest and Halifax allow up to 90 days of Airbnb lets per rolling year, provided you remain compliant with their terms.
If you’re only renting out a spare room or annex while continuing to live in the property, some lenders may allow this under your existing mortgage, but they still require formal consent. For regular short-term letting of the entire property, your lender may insist that you switch to a holiday let mortgage or an Airbnb buy-to-let mortgage designed for short-term rentals.
It’s also important to consider insurance. Even if your lender allows Airbnb hosting, you’ll likely need specialist home or landlord insurance, as standard policies typically don’t cover paying guests. We work with lenders who permit Airbnb use and can guide you in obtaining the correct mortgage and permissions to ensure full compliance.