Do I Need An Airbnb Mortgage?

by | Thursday 22nd Sep 2022 | Mortgage Insights

airbnb mortgage


Purchasing a property for the sole purpose of letting it out for short term holidays or short term business breaks has become increasingly popular in recent years, thanks primarily to the holiday let conglomerate Airbnb. So what do you need to do if you want to get an Airbnb property? Can you get an Airbnb mortgage? And what might letting out an Airbnb property look like for you? In this blog, we will answer some of the internet’s most search questions about Airbnb criteria. If you have any questions that we don’t cover in this article, please feel free to give our advisors a quick call and we’ll be happy to help.

Do You Need A Buy-to-let Mortgage For Airbnb?

Probably one of the most common questions that people who are looking at becoming an Airbnb host have. So what mortgage do you need for Airbnb? Do you need a special buy-to-let mortgage for Airbnb? In most cases with most lenders, If you purchase a property that you want to let out, whether on Airbnb or just a regular buy-to-let, a buy-to-let is usually the type of mortgage that you want to get.

Most lenders will consider Airbnb purchases as buy-to-let purchases so will insist that you meet their buy-to-let mortgage criteria.  Because you will be specifically doing short lets and holiday lets as an Airbnb host, the lender will normally say that there are restrictions on the duration that the property is available for rent throughout they year. This depends entirely on the lender but some can be quite flexible with some allowing an Airbnb to have a short term let of up to 6 months!

Can I get a holiday let for an Airbnb? Yes! A lot of lenders would actually consider their holiday let products to be a much more sensible and fitting type of mortgage for an Airbnb than a standard buy-to-let. There are certain quirks and rules that holiday let mortgages have compared to buy-to-let mortgages so it is always wise to speak to a mortgage advisor first, who will be able to guide you in the right direction.

Can I Use A Commercial Mortgage For Airbnb?



Yes and no. It really depends on the circumstances of the property and the lender. A commercial mortgage is normally reserved for a premises that is used for business purposes on a day to day basis such as an office, a doctors surgery, a car garage etc. As an Airbnb property is dwelling primarily and with a lot of hosts, it is their home specifically.

So, a lot of lenders will not consider this a commercial property as it is not a day to day business premises. However, some lenders may consider a commercial mortgage on a rental property or an Airbnb property if it is part of a wider property business or large property portfolio. If you are a professional landlord with a limited company that owns several properties, some lenders may consider this a day to day commercial business. But it’s always best to discuss this with an advisor first.

Which Mortgage Lenders Allow Airbnb UK?

As we’ve already mentioned, Airbnb is a thriving business and is only growing as people start to realise that they can make money from their spare rooms or (if they’re lucky, spare houses!) Because of its growing popularity, more and more mortgage lenders are entering the holiday let market or are accommodating Airbnb style mortgages within their current buy-to-let guidelines.

An article posted in 2020 in the Guardian by Niko Kommenda, Helen Pidd and Libby Brooks reported ‘Between April 2016 and May 2019, the number of active listings on Airbnb tripled, from about 76,000 to more than 225,000, across the UK. Since then, the number has increased by a further 14%, reaching 257,000 in January 2020.’  This was 2 years ago and has undoubtedly increased even more from there.

But, don’t let that encourage you to seek out your own mortgage without any help. Despite Airbnb’s becoming more commonplace, it is still tricky to negate the lenders and their criteria. If you choose the wrong lender or wrong product and let out your property when you aren’t allowed to, you could be in trouble. Also, finding the best Airbnb rates is something that only an Airbnb mortgage advisor can do for you by searching the open market. And sometimes, lenders will offer exclusive Airbnb products only available through a mortgage advisor.

By securing advice and guidance through an advisor like Oportfolio, you can get exclusive access to Halifax mortgage Airbnb, Natwest mortgage Airbnb, Santander mortgage Airbnb, Nationwide mortgage Airbnb, HSBC mortgage Airbnb, Lloyds mortgage Airbnb, Barclays Airbnb mortgage, and many more mortgages that allow Airbnb.

Can I Airbnb My House If I Have A Residential Mortgage?

This is another very common question because a lot of people own a property on a residential basis and let out one or two or more of their rooms through Airbnb. But in brief, Yes you can potentially let out your property on Airbnb if you have a residential mortgage, but there are some rules and they vary from lender to lender. As well as always speaking to a mortgage advisor first, you should always speak to your bank to make them aware of your intentions. Most lenders will need to give consent to let before you can do so and letting out a property without a lender’s consent can be seen as a breach of contract and mortgage fraud…which you don’t want to get caught up in.

If your intention is to let out your entire property on Airbnb and you are still currently on a residential mortgage, most lenders will not allow this and will need you to switch to a buy-to-let or a holiday let mortgage as you won’t be living there anymore. Although, as with everything, lenders have different criteria and different rules so it is always best to speak to a mortgage advisor first.  If you plan on just renting out part of your house on Airbnb while still living there, a lot of lenders will be fine with this and will not require any changes to be made to the mortgage. Again, different lenders have different rules around this so speak to a professional first.

How To Get The Best Airbnb Mortgage Rates



Advice, advice, advice. It’s that simple. Going your own way and trying to get a mortgage for an Airbnb property is the completely wrong way of going about it. Only with a mortgage advisor can you be safe in the knowledge that you have got the absolute best deal, best mortgage rates, and best lender. If you get advice through a broker like Oportfolio, you will have access to over 90 different mortgage lenders and a wealth of mortgage knowledge.

If you are looking at getting an Airbnb or renting one of your properties out as a short term let, give us a call. Our advisors will be able to go through all of the details of the property, the specifics of how it will be let and will be able to help you select the right type of mortgage and lender for you.

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