Airbnb Mortgage

It is possible to get a mortgage for an Airbnb property, but not all lenders will offer mortgages on this type of let. There are other elements that can make it more complicated to get a mortgage, such as what type of house or flat you want to buy, or concerns over affordability.

If you want to buy a property to start offering rentals through Airbnb or a similar website, your options include holiday-let type mortgages. However, there’s also a growing acceptance of short-term letting amongst buy-to-let lenders and residential lenders. These obviously come with a few caveats which we’ll explain in this guide.

Mortgage options for an Airbnb include:

You wouldn’t ever need a commercial mortgage for an Airbnb property. Airbnb mortgage products typically come under the buy-to-let umbrella, rather than the commercial one. This is because they’re still technically residential as you’re renting to a tenant – not a business. Finding an Airbnb non-commercial mortgage is generally simple.

Holiday lets, or short-term lets in general, can be harder to get a mortgage for compared to either residential or standard buy-to-let mortgages. This is because Airbnb is a relatively new way of renting out holiday properties and some lenders are still concerned about the risks involved and how to accurately assess the expected rental income.

You may be able to turn a residential property into an Airbnb if:

• You’re only renting out a room on a short term basis and therefore do not need to declare this to your lender
• You’re living in the property for the majority of the year and only rent it out for up to 90 days per year
• You get consent to let from the lender and let out the whole property for more than 90 days

Always tell your mortgage lender if you start offering rentals through Airbnb or any other rental avenue. There are various ways your mortgage provider can find out that you are on Airbnb and, if you have not told them, you can be faced with repercussions for breach of contract.

Unless you’re with a buy-to-let lender that allows short term lettings already, then you’ll have to remortgage onto a suitable product if you wish to rent out your property on a short term basis.

Affordability is calculated in different ways by different mortgage lenders.

Holiday let lenders will either assess your affordability using the expected market rental income as with a normal buy-to-let mortgage or they will look at averages of the high, medium and low rental seasons.

Buy-to-let lenders that allow you to let out the property on a short term basis will assess your affordability based on the expected market rental income as with a standard buy-to-let mortgage.

The lender won’t need to reassess your affordability if you’re on a residential mortgage with consent to let. However, if you later remortgage onto a new product then the new lender will assess your affordability.

A first-time buyer can get a mortgage for an Airbnb property but they’ll often find their mortgage options even more limited. Speak to a member of our team to find out what products are available to you.

An independent mortgage broker like John Charcol can help you get the right kind of mortgage for a property you intend to let out through Airbnb.

Our advisers will make sure that you get the most suitable deal on your mortgage even if it’s a complex situation. Some lenders do not deal directly with the public, so you’ll need to go through a broker to have access to the best mortgage options.

Here at John Charcol, we have mortgage brokers with experience in Airbnb and holiday lets. Get in touch today to see how we can help you get the right type of mortgage for your needs.