Airbnb mortgages (often called holiday-let mortgages) are specialist products that allow you to finance a property you’ll rent short-term on platforms like Airbnb and Vrbo. They’re different from standard buy-to-let (which assumes long-term AST tenants) and from residential mortgages (which assume you’ll live there full-time).
With the right lender, packaging and evidence of achievable income, Airbnb mortgages can be straightforward — provided you meet policy on property type, letting model, and affordability.
Affordability model:
Airbnb/holiday-let = assessed on projected holiday-let income (often verified by a holiday-let agent letter or independent comparables)
BTL = monthly AST rent vs interest coverage ratio (ICR)
Personal use:
Many holiday-let lenders allow limited personal use each year; standard BTL usually does not
Insurance & licensing:
Holiday-let insurance and (where applicable) local licensing/consent required
Applicants: Employed, self-employed, company directors and experienced landlords — first-time landlords can be accepted with the right profile
Income evidence: Personal income still matters for background affordability; lenders will also look at projected gross nightly/weekly income and seasonal occupancy
Deposit & LTV: Up to 75% LTV is common (higher deposits can improve pricing and pass stress tests)
Minimum property standards: Good EPC, proper fire safety, mortgageable construction, and acceptable location (tourism or strong short-stay demand)
Personal use: Typically capped (e.g., ≤90 days/yr personal occupancy) — varies by lender
Letting setup: Self-managed or via a recognised holiday-let agent; some lenders prefer/require an agent for income projections
Lenders usually stress-test a conservative annual income figure built from:
Evidence can include:
Tip: Get the correct mortgage type. Using a residential or standard BTL mortgage for Airbnb without consent can breach conditions and invalidate insurance.
Deposit & mortgage fees (product/arrangement, valuation, legal)
Furnishing & initial setup (linen, kitchenware, smart locks, smoke/CO alarms)
Platform fees & payment processing
Cleaning, laundry, maintenance and management
Utilities, council tax or business rates (location-dependent)
Accountant/bookkeeping, insurance
Profile: First-time landlords, both employed, 25% deposit.
Challenge: No track record; seasonal income swings.
Solution: We obtained a holiday-let agent projection with seasonality and a conservative occupancy model. Packaged at 70% LTV with allowance for management and cleaning costs.
Outcome: Approved with competitive pricing; first season exceeded the projection by 12%.
Profile: Existing BTL landlord, remortgaging to switch to short-lets Challenge: Lease allowed ASTs but was silent on short-lets; lender required confirmation Solution: Secured freeholder written consent, switched insurance to holiday-let cover, and presented 12-month demand data from local comparables. Outcome: Approved at 65% LTV; cash flow increased ~28% vs prior AST.
Profile: Sole trader, wants 3 weeks personal use annually
Challenge: Irregular income + personal-use cap
Solution: Lender that accepts limited personal occupancy and averages multi-year self-employed income. Added agent letter with peak and shoulder season rates.
Outcome: Approved at 75% LTV; calendar blocked for family weeks with no issues.
Whole-of-market access to holiday-let lenders (mainstream, building societies, and specialists)
Accurate packaging of income projections & stress tests to the right policy
Soft-search AIPs where available to confirm budgets without harming credit
End-to-end support — valuation, legal, and completion timing aligned to bookings
Not usually. Most BTL products expect AST tenants. Use a holiday-let/Airbnb mortgage or get explicit consent.
They use projected holiday-let income, usually verified by an agent or comparables, and then apply a stress rate and cost allowances.
Expect 25–35% deposit. 75% LTV is common; lower LTV can reduce rates and help pass stress tests.
Often yes, but personal use is capped (e.g., a set number of days per year). Exceeding the cap can breach conditions.
You’ll need written consent or to choose a different property. Lenders and insurers can refuse cover without the right permissions.
We’ll tell you what you can borrow, which lenders fit your property and calendar, and how to package income for approval.
