Airbnb and short-term let mortgages

An Airbnb mortgage is a mortgage that allows the property to be let to guests for short stays, through booking platforms or directly. Most lenders do not have a product called an Airbnb mortgage; instead, short-term letting is allowed under holiday let mortgages and some serviced accommodation products, which are assessed on expected letting income.

Short-term letting is different from a standard tenancy. Guests stay for nights or weeks rather than months, the property is furnished and serviced, and the income changes with the seasons. Lenders treat this as a different risk from long-term letting, so the product, the income test and the conditions differ too.

A standard buy-to-let mortgage is usually not suitable for Airbnb letting, because most of these mortgages require an assured shorthold tenancy and do not allow lets of only a few nights. Letting a property on a short-term basis without the lender's agreement can breach the mortgage terms and leave the borrower without valid insurance cover.

The usual route is a holiday let mortgage, which allows short stays and assesses the income on projected letting figures. Some lenders also allow short lets on a residential mortgage with consent, often for a limited number of nights a year, such as letting a room or a home while the owner is away.

How holiday let lending works in general, including deposits and income tests, is set out in the holiday let mortgages section. That is the starting point for most Airbnb purchases and refinances.

Lenders that allow Airbnb and other short-term lets are mainly building societies and specialist lenders with holiday let ranges, plus some lenders offering serviced accommodation mortgages. Criteria vary on location, the type of property, the minimum number of weeks the property must be available to let and whether the owner can stay there.

Flats in cities can be harder to finance for short lets than cottages in established holiday areas, because lenders worry about lease restrictions and demand. Some lenders accept city short lets only with a track record of income, while others prefer properties in recognised holiday locations.

Lender appetite changes often. Comparing current criteria on a specific property shows which lenders will consider it.

Lenders assess short-let income using projected figures from a letting agent or a specialist valuer, often based on low, mid and high season weekly rates. They usually average these across the year and test that the expected income covers the mortgage interest by a set margin, using a stressed rate rather than the rate on the offer.

Some lenders accept a borrower's own booking history for an existing short let, and others rely only on the valuer's figures. Running costs such as cleaning, platform fees and utilities are higher on short lets than on long-term tenancies, and lenders and borrowers both need to allow for them.

Seasonal rental finance and staycation property loans are other names for the same lending. Rates and fees for this type of mortgage are explained on the holiday let mortgage rates page, including how a stressed rate is used.

Serviced accommodation is a short-let model where apartments or houses are let for short stays with cleaning and linen included, often to business travellers. Mortgages for serviced accommodation are offered by a smaller group of lenders, and they look at the operator's experience, the location and the projected income from nightly rates.

Larger serviced accommodation portfolios or aparthotels may be financed as commercial property rather than with a holiday let mortgage. The approach depends on how many units there are, how the business runs and who owns the freehold.

Short-term letting rules differ across the UK. Scotland requires short-term let licences from councils, Wales is introducing a registration and licensing scheme, and London limits short lets of whole homes to 90 nights a year without planning permission. England is planning a national registration scheme for short-term lets (GOV.UK, accessed 20 Oct 2026).

Leasehold flats often have clauses that ban short lets or business use, and mortgage lenders check the lease before they lend. Council tax, business rates and insurance can also change when a property is let to guests, so the full cost depends on where the property is and how often it is let.

Checking these points before buying avoids lending problems later, because a lender may refuse a case if the property cannot be let legally in the way planned.