Airbnb mortgage guide.

At a glance

• Properties let to short-term guests need finance that allows holiday lettin
• Check your existing mortgage terms before listing a property on Airbnb
• Holiday let income can change throughout the year
• You remain responsible for your mortgage payments during quieter periods and when the property is empty
• You’ll also need to check planning, insurance, tax and any leasehold restrictions
• We can lend up to 75% of the property’s value, subject to status, valuation and criteria
• We can consider projected rental income, including for a new holiday let
• We can also consider non-homeowners, expats and non-standard properties

Buying or remortgaging a property for short-term guests can create an additional source of income. However, it also brings costs, responsibilities and financial risks.

Income can rise and fall with demand and seasonality. There may be periods when the property is empty, but you’ll still need to make your mortgage payments and cover the running costs. If you don’t keep up with your mortgage repayments, your property may be repossessed.

Before listing a property on Airbnb, Booking.com or any other platform, it’s vital to check that your mortgage allows short-term letting. You’ll also need to research the planning rules, insurance requirements and any restrictions affecting the property.

Here, we’ll explain how holiday let finance works with Together, what you need to consider before applying and how the right mortgage can help turn your plans into a workable investment.

What is an Airbnb mortgage?

An ‘Airbnb mortgage’ is an informal name for finance used to buy or remortgage a property that will be rented to short-term guests through Airbnb or other booking platforms.

There isn’t a mortgage product for properties listed specifically on Airbnb. A property operated as short-term holiday accommodation needs a mortgage that permits holiday letting.

The main mortgage types work differently:

• A residential mortgage applies to a home you live in
• A Buy to Let mortgage applies to a property rented to longer-term tenants

• A holiday let mortgage applies to a furnished property rented to short-term guests

Do I need a special mortgage for Airbnb?

You’ll need a mortgage that allows short-term holiday letting if you’re buying or remortgaging a property to rent to Airbnb guests.

Welcoming paying guests changes how the property is used. That means you shouldn’t rely on an existing residential or Buy to Let mortgage without checking the terms first.

If you already own the property, speak to your current lender before listing it. Be sure to confirm that the mortgage permits short-term letting and that you have any consent you need.

You’ll also need to check:

• Whether your insurer covers short-term paying guests
• Whether the lease or freeholder allows holiday letting
• Whether planning permission or a licence is required
• Whether local restrictions apply
• Whether council tax or business rates are payable
• How the income will be taxed

If you plan to run the property as a dedicated holiday let, a holiday let mortgage is intended for this purpose.

Together can consider applications involving:

• Projected income
• Non-standard properties
• Expat applicants
• Non-homeowners
• No minimum income amount

We’ll look at the property, the borrower and the rental plan together, rather than only focusing on one part of the case.

Do I need to change my existing mortgage?

If you already own the property, check your mortgage terms and speak to your current lender before accepting bookings.

Welcoming paying guests is likely to fall outside the permitted use of a residential or standard Buy to Let mortgage. Your lender can confirm whether short-term letting is allowed and whether you need consent or a different product.

You should make these checks whether you plan to:

• Rent out a room while continuing to live in the property
• Let the whole property for short stays
• Change a long-term rental into holiday accommodation
• Remortgage a property already operating as a holiday let

Changing the property’s use without telling your lender can put you in breach of your mortgage terms.

You’ll also need to check your insurance, lease, planning position and local authority rules before listing the property.

What are the risks of financing an Airbnb property?

Holiday letting can generate income, but that income isn’t guaranteed. You need a clear plan for meeting your commitments when bookings are lower than expected.

Income can fluctuate

Demand changes with the season, location, local events, competition and the wider economy.

A property that receives strong bookings during peak periods can be quieter at other times of the year. Nightly rates can also rise and fall, so your forecast shouldn’t rely on the highest rate you expect to charge.

Mortgage payments continue during empty periods

Your mortgage payments still need to be made even when the property isn’t occupied by guests.

You’ll also remain responsible for costs such as:

• Insurance
• Utilities
• Maintenance
• Cleaning
• Management fees
• Repairs
• Council tax or business rates

Be sure to build a financial buffer into your plans so you can cover quieter periods, extended gaps between bookings and unexpected costs.

Running costs affect your return

Short-term accommodation requires regular management.

Cleaning, laundry, guest communication, maintenance and replacing furniture or appliances all affect the income you keep after costs.

Focus on your expected net income after expenses, not just the nightly rate.

Rules can change

Planning, licensing and tax rules can change over time. Local authorities can also apply different requirements in areas with high levels of short-term accommodation.

Check the current rules before buying a property or changing its use. Take legal, tax and planning advice where needed.

Your property is at risk if you don’t make your payments

You remain responsible for the mortgage whether the property is occupied or empty.

If you don’t keep up with your mortgage repayments, your property may be repossessed.

Which Airbnb rules should you check?

The requirements depend on the property and its location. Complete your checks before committing to a purchase or accepting bookings.

Planning and local authority rules

Planning permission depends on how the property will be used and the rules in the local area.

Some locations have additional restrictions. London, for example, has specific rules for short-term letting.

Check the latest requirements with the relevant local authority.

Leasehold restrictions

If the property is leasehold, the lease may restrict business use, subletting or holiday letting.

You may also need permission from the freeholder or managing agent. Review the lease thoroughly before buying or listing the property.

Insurance

Standard home or landlord insurance is unlikely to cover short-term paying guests.

You may need specialist holiday let insurance covering:

• Public liability
• Accidental damage
• Guest-related damage
• Periods when the property is empty

Make sure your property has the appropriate insurance coverage before welcoming guests.

Tax and business rates

Income from a holiday let is taxable.

Whether council tax or business rates apply depends on how the property is made available and how many nights it’s occupied by short-term guests.

The furnished holiday lettings tax regime ended in April 2025. Tax treatment depends on your circumstances, so it’s important to speak to a qualified tax adviser.

Safety requirements

As the person operating the property, you’re responsible for meeting the relevant safety requirements.

These can include:

• Fire safety
• Gas safety
• Electrical safety
• Furniture and furnishing standards
• Smoke and carbon monoxide alarms

Check which obligations apply before accepting bookings.

How our holiday let mortgages work

Our holiday let mortgages are for landlords renting furnished properties to short-term guests.

You can use this finance to buy a holiday let or remortgage a property already being used for short-term accommodation.

Subject to status, valuation and criteria, we can offer:

• Borrowing of up to 75% of the property’s value
• Loans from £30,000 to £4.5 million
• No minimum income requirement
• Consideration of projected holiday let income
• Applications from non-homeowners
• Applications from British expats and foreign nationals
• Consideration of non-standard properties
• No set maximum number of holiday let properties

We can consider projected income when the property is new to holiday letting, including applications from new companies without a trading history.

For an established second property, we can consider historic income where it has traded as a holiday let for at least two years.

We assess every application on its individual merits. The amount available, rate and terms depend on the property, your circumstances and our lending criteria.

Lending is subject to status, valuation and criteria.

How to finance an Airbnb property with us

Start with a clear plan covering the property, the expected income and the full cost of running it.

1. Decide how you’ll use the property

Be clear about whether you’re:

• Buying a new holiday let
• Remortgaging an existing holiday let
• Changing the property’s current use
• Buying a property that needs work before guests can stay

Once we understand your plans, we can look at the property, your circumstances and the proposed rental income together.

2. Research realistic demand

Look at comparable properties in the area, including their pricing and availability throughout the year.

Don’t assume the property will be occupied every night. Build seasonality, local demand and competition into your forecast.

You should also consider how you’ll cover the mortgage and running costs if bookings are lower than expected for several months.

3. Work out the full costs

Alongside the deposit and mortgage payment, budget for:

• Legal fees
• Valuation fees
• Refurbishment
• Furniture and appliances
• Cleaning and laundry
• Utilities and broadband
• Repairs and maintenance
• Platform fees
• Property management
• Specialist insurance
• Tax and accountancy advice
• Periods without bookings

Keep a contingency fund for unexpected costs and lower-than-expected income.

4. Complete the property checks

Confirm that the property can be used as a holiday let.

Check:

• Planning requirements
• Local licensing rules
• The lease
• Freeholder restrictions
• Insurance conditions
• Local authority rules

Complete these checks before committing to a purchase where possible.

5. Prepare your application

When you apply with us, we’ll need information about the property, your circumstances and the rental plan.

This can include:

• Property details
• Your deposit or equity position
• Projected rental figures
• Historic rental evidence
• Personal or company income information
• Details of other properties you own
• Information about planned refurbishment work

We’ll explain what we need from you and take the time to understand the full picture.

What types of property can we consider?

The same features that give a holiday let its charm and character can also make it harder to place with a mainstream lender.

Subject to valuation and criteria, we can consider:

• Coastal cottages
• Properties with certain restrictions
• Non-standard construction
• Properties requiring renovation
• Properties in unusual locations

The property still needs to provide suitable security for the mortgage. Its condition, location, construction and intended use will form part of our assessment.

If the property needs work before it can welcome guests, we can also help you explore whether short-term or refurbishment finance is more suitable.

Why choose Together for an Airbnb or holiday let mortgage?

We’ve helped people, businesses and professionals achieve their property ambitions for over 50 years.

Our approach combines common sense, specialist lending expertise and a personal understanding of each case. So, if your property, income or circumstances are a little less straightforward, we’ll consider how all the pieces fit together.

Rather than looking only at one part of the application, we consider the property, the borrower and the rental plan.

For Airbnb finance and short-term rental mortgage needs, our holiday let mortgages can support:

• Projected income
• No minimum income amount
• Non-homeowners
• Expats and non-UK applicants
• Non-standard properties
• No set maximum on holiday let portfolio size
• Desktop valuations up to £500,000

We can also consider self-employed applicants, retired applicants, foreign nationals based in the UK or abroad and borrowers with less-than-perfect credit.

That means your case can be reviewed with the context it deserves, subject to status, valuation and criteria.

Talk to us about holiday let finance

An Airbnb property needs more than a strong listing. It needs the right mortgage structure, a clear income plan and a good understanding of local rules.

If you already own the property, check your existing mortgage terms before listing it. If you’re buying, switching use or looking to remortgage for Airbnb, choose finance set up specifically for holiday letting.

Thinking about buying or remortgaging a property for short-term holiday letting? Get in touch or explore Together’s holiday let mortgages to see how our common-sense approach could help.