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    What is an Airbnb Mortgage?

    An Airbnb mortgage, or mortgages for Airbnb, refers to the type of mortgage that complies with the rules surrounding using a property as a short-term rental on platforms such as Airbnb. Unlike traditional mortgages for primary residences where the property is used solely for personal occupancy, a mortgage for Airbnb property takes into account the property owner’s intention to generate income through short-term rentals.

    What mortgage do I need for Airbnb?

    When considering Airbnb hosting, the type of mortgage required depends on factors such as the property and your unique situation.

    It’s important to ask yourself key questions such as:

    • Are you planning to rent out the entire property or just individual rooms?
    • Do you intend to continue residing in any part of the property?
    • If you already have a mortgage, will your current lender grant you permission with ‘consent to let’?
    • What is the anticipated duration of property rental on Airbnb?
    • Can I use Airbnb with a residential or existing mortgage?

      If you are living in the property and considering renting out individual rooms through Airbnb, you might be able to use your existing residential mortgage for this purpose.

      Most mortgage agreements for residential properties have clauses that require approval or restrict rental arrangements. This approval is commonly known as ‘consent to let,’ and it’s an important step you’ll likely need to take to proceed with this arrangement. Failing to get permission from your lender about the change in property usage could lead to serious consequences. Make sure to review your existing mortgage terms and reach out to your lender for guidance.

      Leasehold properties

      Whether you currently own or are considering buying a leasehold property, it’s essential to carefully review the rules outlined in the lease agreement. Certain residences are explicitly designated as solely for “private residence,” and if your property falls under this category, engaging in short-term rentals won’t be permissible. Leasehold arrangements are frequently associated with flats.

      Regional regulations

      It’s important to check if there are regional constraints to short-term lets in the area. There are certain rules and regulations in some cities and regions. More information can be found on the Airbnb website.

    • How does a mortgage for an Airbnb property differ from standard buy-to-let mortgages?

      While buy-to-let mortgages work in similar ways to the mortgage required for Airbnb property, there are a few factors that are different. Largely, the interest rate may be slightly higher than standard buy-to-let mortgages.

      It is important to note that you cannot Airbnb your property with a standard buy-to-let mortgage.

    • Holiday let mortgage

      A holiday let mortgage may be more appropriate for short-term letting. It is common for individuals to take out a holiday let mortgage with a lender who is comfortable with Airbnb.

      More information on holiday lets can be found here.

    • Commercial mortgage

      This is relevant if the property has a commercial aspect or if you’re an experienced landlord with multiple properties.

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    What are the advantages and disadvantages of mortgages for Airbnb?

    Airbnb mortgage


    • The potential for higher rental income compared to traditional long-term rentals.
    • The flexibility to use the property for personal stays.
    • The opportunity to tap into the growing short-term rental market and demand.
    • An additional source of income to let out spare rooms.


    • Managing short-term rentals requires more active involvement, including property maintenance, guest communication, and regulatory compliance.
    • There’s also the risk of seasonal fluctuations in rental income and the potential for property damage and periods without rent.
    • Securing an Airbnb mortgage might be more complex than a traditional mortgage due to the unique nature of short-term rentals and a more limited pool of lenders.

    Which mortgage lenders allow Airbnb?

    There is a smaller pool of lenders which would be content lending to properties used for Airbnb. Given the unique nature of short-term rentals, it is likely a specialist lender will be required, with whom we have fantastic relationships.

    Airbnb mortgages and short-term rentals are a niche market area. At Private Finance, we can assist you in identifying the most appropriate lender for your specific requirements and arrange the right mortgage tailored to your circumstances.

    Airbnb mortgage eligibility and affordability

    To proceed with your mortgage application, you will need to gather essential documentation such as identification, proof of address, and income history. You will need to prove your potential earnings from Airbnb rentals to demonstrate your viability to lenders. Your mortgage broker will handle all the paperwork and timelines to manage the application in a stress-free manner.

    Mortgage affordability is calculated differently depending on the lender. Lenders will want you to demonstrate the expected market rental income, similar to a standard buy-to-let mortgage. They could also consider the averages of high, medium, or low rental seasons. If you are on a residential mortgage, the requirements are different if you have consent to let. In this case, the lender will not need to reassess your affordability. However, they will need to reassess your affordability if you remortgage onto a new product at a later date.

    Eligibility criteria for mortgages for Airbnb can vary based on the type of mortgage and property usage. Factors include whether you’re renting rooms or the entire property, property type, level of personal income, deposit size, and rental income coverage. Meeting these criteria is essential for obtaining the right mortgage for your Airbnb plans.

    FAQs Airbnb Mortgage

    • What insurance do I need for Airbnb?

      Insurance is a critical consideration for Airbnb properties. Standard home insurance might not cover short-term rentals, so you’ll likely need specialised coverage that accounts for potential risks associated with guests staying on your property. Airbnb strongly encourages all hosts to understand the terms of their insurance coverage and ensure this is sufficient.

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