With more and more people now letting their homes and spare rooms out using the popular Airbnb platform, it’s led to a large rise in mortgage enquiries for these types of arrangements. It’s also led to an increase in UK people looking to buy property as an investment to let out using this service. But can you use a buy to let mortgage on an Airbnb property?

Many lenders won’t allow borrowers to rent out rooms without clear and written consent, with some prohibiting short-term letting completely. However, there are now some mortgage lenders who will let you borrow on a buy to let mortgage for an Airbnb property. 

How mortgage lenders have traditionally opposed Airbnb mortgages

There is no doubt that the rise of Airbnb has led to challenges for the traditional mortgage lenders, who have previously been against short-term let agreements.

Until very recently, you would have found it very hard to find a mortgage lender who would be prepared to lend against an Airbnb rental.

However, with more property owners and landlords shifting to this online platform due to the higher rental returns they can offer, mortgage lenders are having to adapt.

But there are still some lenders in the UK market who completely prohibit their borrowers to be Airbnb hosts, including some of the big names such as Barclays, HSBC, and Nationwide.

Where can you get an Airbnb buy to let mortgage?

That doesn’t mean it’s impossible to find a lender though and our mortgage advisers will be able to help you match yourself up to the right provider, at the best rate for you.

And that rate is very important, as even if you do get permission to use your buy to let mortgage on an Airbnb rental, you might face higher interest and fees compared to traditional mortgage deals.

Rather than going ahead without permission from your mortgage lender, we would advise finding a provider that will let you mortgage without risk of breaching your contract.

So, who are those lenders who will be prepared to offer a mortgage on a buy to let property intended for the Airbnb market?

That very much depends on a number of factors and how much you wish to borrow.

Here is some up to date data as at November 2018 of just some of the large and well-known lenders:

Lender NameCan you rent a room on Airbnb?
LloydsYes, to a maximum of 4 months annually
Metro BankYes, to a maximum of 3 months annually
Royal Bank of Scotland (RBS)Possibly, but with prior consent
SantanderPossibly, but with prior consent
Virgin MoneyPossibly, but with prior consent
Yorkshire Building Society (YBS)No

As you can see, it’s not always clear cut.

That’s why we advise talking to one of our Airbnb mortgage specialists who will be able to source you a deal with a lender who will let you rent out rooms on a short-term and ad-hoc basis with no penalties.

Why use a buy to let mortgage for Airbnb?

They are many advantages to taking out a buy to let mortgage on an Airbnb property, which all come down to flexibility on renting, plus how much income you can generate.

It makes it possible for you as a landlord to offer a short-term let on a higher rental fee, therefore possibly making more income over a set period of time.

You will be able to rent out your property for very short periods, ranging from a couple of days to six months. And those short-term rentals will typically be priced higher when compared to a longer-term tenancy agreement.

Buy to let mortgages for Airbnb rentals can be used for:

  • Businesses looking to accommodate employees
  • Homeowners needing to rent whilst work is conducted on their home
  • People wanting to assess an area before moving permanently
  • Visiting tourists and holiday makers

Does it have to be a buy to let mortgage though?

Not necessarily.

It might be that you have a spare room in your residential home that you wish to list from time to time on the Airbnb website.

Obviously in that scenario you won’t be in a buy to let situation.

However, we would advise that you do notify your mortgage lender and are completely transparent with your intentions.

If you mortgage lender finds out that you are renting rooms in your home, you could be in breach of your mortgage terms.

Want to know more about Airbnb mortgage deals?

For more information on how to get a mortgage for an Airbnb property, please visit our dedicated pages regarding Airbnb mortgages to find out how to get the best deals and advice.