Can I get a mortgage for my Airbnb property?
If you’re intending to use your property for short term holiday let such as Airbnb, the mortgage lending process can be more complicated. In addition, lenders tend to have more strict lending criteria. We would therefore advise you to speak to an experienced mortgage broker like us.
The most important thing we will discuss with you is what your letting strategy will be. In particular:
- Will you be letting out the whole property or part of it?
- How many days do you plan to let out the property?
- What is your anticipated rental income for the year?
- Are you planning to live in some or all of the property?
Once we understand this, we can then help you with your rental calculations to understand what is possible. It also guides us to which type of mortgage to choose and then package your case to maximise success.
The criteria for an Airbnb mortgage will differ from one lender to another. It might be that you need go to a specialist mortgage lender. Some of these lenders only allow applications through brokers like us.
We know what documents you need to provide to the lender to prove your affordability. We have relationships with specialist lenders who are more likely to accept applications for short term lets like Airbnb.
By using an experienced mortgage adviser like us, we can help guide you through this whole process and help make it as stress free as possible.
Contact us today for Airbnb Mortgage Advice.
There is no guarantee that it will be possible to arrange continuous letting of the property, nor that rental income will be sufficient to meet the cost of the mortgage.
Your property may be repossessed if you do not keep up repayments on your mortgage.
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?
Once you have decided your letting strategy, we can then look at which type of mortgage suits. Here are the main options:
- Holiday Let mortgage
Generally lenders prefer traditional holiday lets to short term letting such as Airbnb. However, some lenders may permit property rental through platforms like Airbnb. Criteria can be quite strict for this and loans are often restricted.
- Buy to Let mortgage
Most Buy to Let mortgage lenders prefer you to rent to the same tenant for a longer period of time. This means that many buy to let mortgage products are not suitable for short term lets like Airbnb. There are some Buy to Let lenders that permit short term holiday lets. The criteria tends to be quite strict around how many days the property is let for and what proportion of the property is let out.
- Residential mortgage
If you are planning to live in your home and rent it out for less than 7 days at a time. And for fewer than 90 days annually, you might be able to use a residential mortgage. It’s important that you speak to your existing lender before going down this route as not all lenders permit this.
It can be hard to know what is appropriate for you without speaking to a mortgage broker like us. We will take the time to understand your personal circumstances and do the calculations with regards to rental forecasts. We will also fully work out how much of the house you want to rent out and for how long each year. All of this will help to determine which type of mortgage is suitable for you.
Airbnb mortgages are not straightforward and it is important you keep to the terms of your mortgage contract.
If you want to understand your mortgage options then get in touch with us today for Airbnb Mortgage Advice. We have access to the current mortgage deals, some of which are not available directly. We can help you maximise the profits from your investment.
Why choose us?
Our friendly, experienced team is based in the heart of Salisbury, Wiltshire. But we can help you no matter where you live in the UK. To find out more about Your Mortgage Expert, visit our Meet the Team page.
Our team has:
- Over 80 years of experience in the mortgage and protection industry
- Close relationships with high street and specialist lenders
- We have over 100 five-star reviews on Google
- Have helped hundreds people access mortgages holiday let and buy to let mortgages
How we work:
- Personalised, hard working service
- Search 1000s of deals from multiple lenders
- Detailed research to ensure you save money
- Take care of the paperwork to minimise stress
- By your side from application to completion
- The experience to get a good result for you
Contact us today for Airbnb Mortgage Advice and see how we can help you get a successful outcome.
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Email Dan AllenDan Allen - Mortgage Adviser
Dan Allen has worked with mortgages for over 10 years. He takes time to understand different lender criteria. His wealth of knowledge means he will know which lenders will work for you situation. -
Email Dan HarrisDan Harris - Mortgage Adviser
Dan started working in the mortgage industry in 2004. Since then, he has helped lots of Buy to Let investors. Dan has great attention to detail and will do the hard work to ensure you get the best recommendation.