Can I get a mortgage for my Airbnb property?
The mortgage route for you will depend on exactly how you plan to use the property.
Using a property for Airbnb style short term letting can be more complicated than a standard buy to let because lenders will usually want to understand your letting strategy in more detail. For example, they may want to know whether you plan to let the whole property or just part of it, how many days a year you expect it to be occupied, and whether you will also live there yourself for some of the time.
This is why Airbnb mortgage advice often starts with understanding how the property will be used in practice. Once that is clear, it becomes much easier to work out which mortgage route may be suitable. We can help you:
- Understand which mortgage type may suit your Airbnb plans
- Help with holiday let, buy to let and residential route questions
- Guidance on lender criteria and short term letting plans
- Appointments by phone, video or in person
A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.
What type of mortgage is right for my Airbnb Property?
The most suitable mortgage for an Airbnb property will depend on how often the property is let, whether you live there yourself, and what your lender allows.
Holiday let mortgage
A holiday let mortgage is often the most natural route where the property is intended mainly for short term holiday accommodation. Some lenders are more comfortable with this kind of arrangement than with standard buy to let lending.
Buy to let mortgage
A standard buy to let mortgage is usually designed for longer term tenants rather than short stays. Some buy to let lenders will not allow Airbnb style letting, so it is important not to assume that a normal buy to let mortgage will be suitable.
Residential mortgage
If you live in the property and only let it occasionally, there may be cases where a residential route is relevant, but this depends heavily on lender criteria and the details of how the property will be used.
Because the rules vary from lender to lender, it helps to get advice before choosing a mortgage route.
When Airbnb mortgage applications can be more complicated
Airbnb mortgage cases can become more complicated where the property does not fit a simple short term letting pattern.
This can include situations where:
- You live in the property for part of the year
- You only let out one room or part of the home
- Income is likely to be seasonal or variable
- You are converting an existing residential property into an Airbnb
- You are unsure whether your current mortgage allows short term letting
In these cases, it is especially important to understand lender criteria properly before making changes or committing to a new purchase.
What lenders may want to know
If you are applying for a mortgage on a property that will be used as an Airbnb, lenders will often want to understand more than just the property value and your income.
They may ask about:
- Whether you will let the whole property or only part of it
- How often you expect the property to be let
- Your anticipated rental income
- Whether you will also use the property yourself
- The type of mortgage currently on the property, if you already own it
- Your experience with letting or property ownership more broadly
The more clearly your plans can be explained, the easier it is to work out which lenders may be suitable.
Why use Your Mortgage Expert for Airbnb mortgage advice?
Airbnb mortgage cases can feel unclear because the right route is not always obvious at the start.
- Clear advice on short term letting mortgage options
- Help understanding whether a holiday let, buy to let or residential route may fit best
- Support with lender criteria and documents
- Friendly guidance from enquiry through to completion
- Appointments by phone, video or in person
If you are looking at Airbnb as an investment or using an existing property for short term letting, we can help you understand the options more clearly.
Speak to us about Airbnb Mortgage Advice
If you are thinking about buying a property for Airbnb, or want to understand whether your existing property could be used for short term letting, we would be happy to help.
We can talk you through the mortgage options, explain what lenders may want to know, and help you work out which route may be most suitable for your plans.