Mortgage for AirBnB

Renting out a property on Airbnb isn't the same as letting it to a standard tenant, and most residential and buy to let lenders will tell you exactly that if you don't ask the right questions first. Short-term, guest-led letting sits in its own corner of the mortgage market, and getting the wrong type of mortgage — or not declaring your plans at all — can put your entire loan at risk. At Premier Mortgage Services, we work with landlords and property owners across the country to find lenders who understand Airbnb and short-term letting, whether you're buying a new property specifically for guests or switching an existing let over to a short-stay model.

This guide explains which mortgages actually allow Airbnb letting, what lenders expect to see, how much deposit you'll typically need, and where the tax rules currently stand. If you'd rather skip straight to a conversation, get in touch with our team and we'll talk you through your options based on your specific property and plans.

Can you use a standard mortgage for an Airbnb property?

Not in most cases, no. Whether a mortgage will allow Airbnb letting comes down to how the property is used and how often it's occupied by paying guests rather than a single household. There isn't a specific "Airbnb mortgage" product as such — instead, the right option usually falls into one of three categories.

Residential mortgages

If you live in the property and only let out a spare room occasionally, some residential lenders will permit this, provided you tell them first. What they generally won't allow is letting the whole property out while you're not there. A residential mortgage is priced and underwritten on the basis that the home is your main residence, not an income-generating asset, and letting the entire property to guests without permission is usually treated as a breach of your mortgage conditions.

Buy to let mortgages

For a property bought purely to let out to Airbnb guests, a buy to let mortgage can work, but not every buy to let lender is comfortable with short-stay guests. Standard buy to let mortgages are built around assured shorthold tenancies of six or twelve months, so a lender needs to specifically permit short-term or holiday-style letting on the product you apply for. Some will cap the number of nights you can let to guests within a rolling twelve-month period, so it's worth checking this before you commit.

Holiday let mortgages

This is usually the closest match to how Airbnb actually works. A holiday let mortgage is designed around short, guest-led stays rather than long-term tenancies, and many holiday let lenders explicitly support Airbnb-style booking platforms. If your goal is guests coming and going every few days rather than one long-term tenant, this route tends to give you the most flexibility.

If you already own the property on a residential mortgage and want to convert it to Airbnb use, switching to buy to let or holiday let terms is possible but not automatic — your lender will assess it based on the property's rental potential and, in many cases, how long you've held the mortgage. We can talk you through whether switching or remortgaging makes more sense for your situation.

What lenders look for

Because Airbnb income is treated as a business rather than a simple tenancy, lenders assess these applications a little differently to a standard mortgage.

Rental income and affordability

Most lenders want to see a projected rental income that comfortably exceeds the mortgage repayments — typically in the region of 125% to 145% of the monthly interest cost, though this varies by lender. So if your mortgage payment is £900 a month, a lender might expect to see realistic income of roughly £1,125 to £1,305 a month from bookings. Some lenders will also want evidence of income from another source, such as employment or a pension, as a safety net for quieter months.

Deposit requirements

Expect to need a deposit of at least 20% to 25% of the property's value, giving a maximum loan to value of around 75% to 80%. On a property valued at £180,000, that means a deposit of roughly £36,000 to £45,000. A larger deposit generally widens your choice of lender and can improve the rate you're offered.

Property type

Standard construction — brick and tile — is straightforward for most lenders. Non-standard properties such as timber-framed homes, steel-framed buildings, thatched roofs or converted barns can still be mortgaged for Airbnb use, but the pool of willing lenders narrows and rates can be a little higher.

Credit history

A clean credit file makes the whole process smoother, but a less-than-perfect history doesn't necessarily rule you out. There are lenders who take a more flexible view, particularly where the rental figures are strong. If your credit history is a concern, our guide to mortgages with a CCJ covers some of the options available.

Planning permission and local rules

Before you commit to a purchase or start marketing a property on Airbnb, it's worth checking whether your intended use needs planning permission. Outside London, permission generally isn't required just because a property is let short-term — the test is whether the letting amounts to a material change of use from an ordinary home to visitor accommodation, which is a question of fact and degree for the local planning authority. In Greater London, whole-property lets are subject to a 90-night limit within a calendar year before separate planning permission is needed, under provisions introduced by the Deregulation Act 2015. GOV.UK's planning guidance sets this out in more detail, and it's always worth checking your council's own position before you proceed, since some local authorities apply additional restrictions.

Is mortgage interest on an Airbnb property tax deductible?

The tax treatment depends on how your letting business is structured, and the rules changed for holiday lets from April 2025. The Furnished Holiday Lettings regime, which previously allowed owners to deduct mortgage interest in full and access certain other reliefs, was withdrawn from that date, and qualifying property income is now taxed in line with other residential property businesses. In practice this means mortgage interest relief is typically given as a tax credit rather than a full deduction for most individual owners. GOV.UK's policy paper on the abolition of the Furnished Holiday Lettings regime covers the detail, and we'd always recommend speaking to an accountant about your specific circumstances alongside your mortgage advice.

Depending on how your letting is set up, you may still be able to claim for costs such as cleaning, agency or platform commission, landlord insurance and certain repairs — an accountant can confirm what applies to you.

Speak to a specialist about your Airbnb mortgage

Airbnb mortgages sit in a genuinely specialist part of the market, and getting the wrong product — or not disclosing your plans to a lender — can put your mortgage and your income at risk. We work with lenders who understand short-term letting and can help you find the right structure, whether that's a buy to let product with short-let permission or a dedicated holiday let mortgage. Get in touch with Premier Mortgage Services today, or if you're remortgaging an existing property to move it onto Airbnb, our remortgage guide is a good place to start.

Frequently asked questions

Do I need a special mortgage to let my property on Airbnb?

There's no single "Airbnb mortgage" product, but you do need a mortgage that specifically permits short-term or guest letting. This is usually either a buy to let mortgage with short-let permission or a holiday let mortgage, rather than a standard residential or long-term buy to let product.

Can I put my home on Airbnb without telling my mortgage lender?

No. Letting your property to guests without your lender's knowledge can breach your mortgage terms, and in serious cases a lender can demand the full mortgage debt be repaid. Always speak to your lender or a broker before you start hosting.

How much deposit do I need for an Airbnb mortgage?

Most lenders ask for a deposit of 20% to 25% of the property's value, giving a maximum loan to value of around 75% to 80%. Some specialist lenders may ask for more, particularly on non-standard construction properties.

Will lenders count my Airbnb income when assessing affordability?

Yes, most lenders will assess affordability based on projected rental income, usually expecting it to cover somewhere between 125% and 145% of your monthly mortgage interest. Some lenders also want to see a minimum income from employment or another source as a backup.

Do I need planning permission to run an Airbnb?

It depends on where the property is and how it's used. Outside London, permission is generally only needed if the letting amounts to a material change of use of the property. In Greater London, whole-property short-term lets are capped at 90 nights a year before separate planning permission applies. Check with your local planning authority for anything specific to your property.

Is mortgage interest on an Airbnb property still tax deductible?

The previous Furnished Holiday Lettings tax regime, which allowed mortgage interest to be deducted in full, was withdrawn from April 2025. Airbnb and holiday let income is now generally taxed in line with other rental property, with mortgage interest relief given as a tax credit rather than a full deduction. Speak to an accountant to confirm how this applies to your circumstances.