If you want to let a property on Airbnb, the right mortgage is essential. Not all lenders allow short-term or nightly lets, and using the wrong type of mortgage can put you in breach of your loan terms. Here we’ll explain how Airbnb mortgages work, which lenders allow them, what the rules are, and how to find the best Airbnb mortgage.
Are there specific Airbnb mortgages?
No, there’s no mortgage product specifically designed for listing homes on Airbnb. The reason being, Airbnb is simply a technology company that facilitates short-term lets. But there are various types of mortgages that would suit certain short-term rentals.
However, the correct type of mortgage for your Airbnb will depend largely on the individual property and how you plan to rent it out. Don’t presume a buy-to-let or residential mortgage automatically allows short-term letting on sites like Airbnb.
Types of mortgages for Airbnb hosts
Below are the main mortgage types that typically can (or cannot) support Airbnb use. However, keep in mind that rules can vary across lenders, with some being more flexible than others.
Buy-to-let (BTL) mortgages
A common misconception is that buy-to-let (BTL) mortgages always allow a property to be let out on Airbnb. Most mainstream BTL mortgages do not allow Airbnb rentals because they are designed for long-term tenancies under an Assured Shorthold Tenancy (AST).
Some specialist lenders may allow short-term Airbnb letting on a buy-to-let mortgage, but finding these lenders without expert support can be difficult.
Holiday let mortgages
This is the most common mortgage type for Airbnb properties. A holiday let mortgage is specifically designed for furnished short-term letting to paying guests.
Most lenders offering holiday let mortgages should allow using sites like Airbnb, Vrbo, Booking.com, and others, but it’s important to check the exact rules.
Holiday home mortgages
Holiday home mortgages allow you to use the property yourself, but usually do not allow letting to paying guests.
Although they typically do not allow Airbnb usage, certain mortgages may include allowances for short-term rentals up to a specific number of weeks each year.
Commercial mortgages
If you’re operating the property as a fully managed short-stay business (perhaps with multiple units, serviced accommodation, or a hotel-style model), you may require a commercial mortgage for your Airbnb.
These mortgages are assessed on business profitability rather than personal affordability, and you’ll need to approach a specialist commercial mortgage lender.
Residential mortgages
Residential mortgages typically prohibit Airbnb use unless you obtain specific consent to let, and even then, consent is often temporary and rarely covers short-term nightly letting.
However, a mortgage broker can explain all the specific terms relating to Airbnb in your existing or new residential mortgage.
How to get an Airbnb mortgage in the UK
If you’re thinking about getting an Airbnb mortgage, here are some simple steps to follow to ensure the whole process goes smoothly:
1. Speak to a broker
Getting the right mortgage for your Airbnb will depend on your financial circumstances and investment property goals. If you speak to a broker with Airbnb mortgage experience from the outset, they can direct you to the most appropriate type of home loan and the best lender to approach for your situation.
With a skilled broker in your corner and an idea about what type of mortgage you need, they can guide you through the whole process of preparing and presenting your application in the right way.
2. Arrange a rental projection
You’ll likely need a short-term rental income projection, which most lenders use instead of long-term letting estimates. Typically, an agent or valuer will assess expected weekly rates across peak, mid and low seasons, as well as occupancy levels.
This projection helps determine whether the property can support the mortgage repayments and plays a key role in your application.
3. Apply for an Airbnb mortgage
Working with a specialist broker means they can match your application to a lender that allows Airbnb use. Most Airbnb-friendly lenders require an introduction from a broker, and the criteria varies.
Your broker will package the application, advise you on the deposit, help arrange the rental projection, and ensure the property meets the lender’s Airbnb rules, improving your chances of approval and securing better rates.
Begin your mortgage journey
Mortgage rules and lending criteria
Here’s a brief overview of some of the key Airbnb mortgage rules, along with examples of lender criteria:
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Property use and letting type: The way you use the property (whether it’s short-term holiday accommodation, for example) affects your mortgage options. Many lenders prohibit Airbnb usage, so you’ll usually need a holiday let mortgage or specialist finance designed for short-term letting.
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Deposit and loan-to-value (LTV): Expect slightly higher deposit requirements than a standard buy-to-let. Most Airbnb-friendly lenders cap borrowing at around 75% to 80% LTV, and some may be stricter depending on location, seasonality, or property type.
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Rental income stress testing: Instead of long-term rental projections, lenders require short-term letting income forecasts. These typically include peak, mid-season and low-season estimates. The projections must pass the lender’s stress test, which can be stricter than regular buy-to-let rules.
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Experience, affordability and credit profile: While first-time landlords can apply, some lenders prefer applicants with prior experience. Lenders may also consider your personal income to assess your resilience during quiet periods. Your credit still matters, and bad credit may limit your choices of Airbnb-friendly lenders.
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Property suitability and location: Lenders assess whether the property is realistically lettable as a short-term rental. This includes local demand, tourism levels, access, condition and layout. Airbnb properties in recognised holiday let hotspots can be easier to finance.
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Planning and licensing: Beyond your mortgage, many regions in the UK now require planning permission (like London and parts of Scotland) or a mandatory licence to legally operate a short-term let. Lenders will often check that you have any required local permits before approving a loan.
How to calculate an Airbnb mortgage
Lenders assess Airbnb mortgages differently from standard buy-to-let borrowing. Instead of relying on long-term rental income, they base affordability on projected short-term letting income across peak, mid-season and off-peak periods. These figures are taken from a valuation or agent’s projection, not from Airbnb itself.
Most lenders stress-test the income using an average of low-season weekly rates multiplied across a set number of weeks, usually 30 (some lenders use 31 to 35). It helps them determine whether the property can still cover the mortgage during quieter months. Some lenders may also be willing to include your personal income.
If you want to get an idea of how much you could borrow, using an Airbnb mortgage calculator can give you a quick indication, but remember that lenders’ calculation methods vary. The best way to get accurate numbers is to have a brief discussion with a broker who can review your specific Airbnb property.
Available UK mortgage lenders
Here are a few popular mainstream UK lenders and how they currently approach Airbnb and short-term letting:
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Halifax: Like most lenders, Halifax does not offer a mortgage designed explicitly for Airbnbs, but customers can apply for consent to let for short-term stays on a case-by-case basis. With a second home mortgage, you can let it out for up to 4 months, but Halifax specifically prohibits Airbnb.
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Nationwide: In certain situations, Nationwide may grant temporary permission to let under its standard mortgages (with an extra 0.5% interest). The Mortgage Works (TMW) is Nationwide’s specialist buy-to-let arm, but they may not be able to provide holiday let mortgages for properties let exclusively on Airbnb.
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Barclays: May allow short-term letting of up to 90 days with a residential mortgage. If you’re planning to rent out your property for fewer than 31 consecutive days, Barclays may offer holiday let mortgages. Also, Airbnb is Barclays’ approved online short-term occupancy platform.
Why choose Money Helpdesk for your Airbnb mortgage?
Airbnb mortgages are niche, and many mainstream lenders do not allow short-term letting for most mortgage types. That’s why most hosts use a specialist broker who knows exactly which lenders permit Airbnb use and what their criteria are.
Here’s why Airbnb hosts and property investors with short-term rentals choose Money Helpdesk to help find a mortgage:
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Free initial chat with no obligation to proceed further
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5-star-rated advisors with specialist Airbnb holiday let experience
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Introductions to lenders comfortable with Airbnb properties
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Access exclusive rates and flexible deals for Airbnbs
If you’d like to compare Airbnb-friendly mortgage rates or speak with an experienced broker for free, you can get started here.
FAQs
It depends on what you’re comparing them to and which type of mortgage is being used. Airbnb holiday let mortgages often have higher interest rates than standard buy-to-let mortgages due to the short-term letting risk and the specialist nature.