Commercial Mortgage for Airbnb: Finance Options for Short-Term Lettings

With the rising popularity of AirbnbWhat is Airbnb? Airbnb is an online platform that allows pro... and other short-term rental services, more and more people are excitedly looking to buy properties to list on these platforms. If you’re considering securing a mortgage for an Airbnb property, there are a few important things to keep in mind first.

It’s essential to figure out whether you’ll be renting out the whole home, ensure the rental income will cover your monthly mortgage repayments, and check if your current mortgage lender requires ‘consent to letConsent from a mortgage lender to let out a property..’ Consulting with mortgage brokers can help you understand the mortgage terms and conditions that apply to short-term rental properties.

In this article, we’ll guide you through the steps to obtain a mortgage for a property aimed at Airbnb rentals, explore the different types of mortgage products available, and explain how an experienced mortgage broker can help you navigate the mortgage application process.

The article is updated as of March 25, 2025

Risk Warnings

Commercial mortgages by referral only.

The Financial Conduct Authority do not regulate commercial mortgages.

Can you get a mortgage for an Airbnb property?

Yes, it’s possible, but getting a mortgage for an Airbnb comes with some unique obstacles. Here are some examples of what you should ask yourself before you mortgage an Airbnb property:

• Will you be leasing the entire property or just renting out individual rooms on a short-term basis?
• What potential income can you anticipate, and will it be sufficient to cover your monthly rent and mortgage repayments?
• For how many days, weeks, or months do you plan to list the property on Airbnb?
• Will you require ‘consent to let’ from your current mortgage provider if you already hold a mortgage?
• Do you intend to occupy any portion of the property for personal income purposes?

Can I get a commercial mortgage on an Airbnb property?

A buy-to-let or commercial mortgage is often the most suitable mortgage type for an Airbnb rental. Commercial mortgages, often called business mortgages, are your go-to option for buying or refinancing properties meant for commercial purposes.

Unlike traditional mortgages, where you can find standardised options, commercial mortgage products can be a bit more personalised. That’s where a specialist mortgage broker really shines! They can guide you through commercial lending criteria and ensure you meet the mortgage rules required by different mortgage providers lending for short-term lettings.

If you have a strong track record, experience in property management, and a solid portfolio of investment properties, you might find this type of financing more accessible than you think.

Other types of mortgages you can get for an Airbnb property:

• Holiday let mortgage – Certain lenders permit renting out a property on an online platform like Airbnb if you secure a specialised holiday let mortgage. To qualify, you must meet specific criteria, including proving minimum incomeThe minimum income required for a borrower to be eligible fo... levels and obtaining loans within a predetermined price range.
• Buy-to-let mortgage – A buy-to-let mortgage is typically the most popular choice for property investors intending to rent out an entire property on a short-term basis. However, several buy-to-let mortgage providers impose specific restrictions, such as the maximum number of days you can rent the property or requirements for a Shorthold Tenancy agreement.
• Residential mortgage – A residential mortgage is an option if you plan to live in the property and rent out rooms for additional income. Residential mortgage lenders may impose specific mortgage conditions, including a 90-day rental limit per year. Some mortgage agreements require informing your lender and obtaining approval before starting any short-term lets.

How to get an Airbnb commercial mortgage

1. Consult With a Mortgage Broker: The first step should be consulting with an experienced mortgage broker. Their expertise in short-term lets and specialist finance can greatly influence whether you secure a suitable mortgage deal. Contact us today for a callback, and we will connect you with an exclusive mortgage expert.
2. Compile All Necessary Documents: Ensure you have proof of income, identification, and bank statementsA record of a borrower's financial transactions often requir.... Additionally, check your credit score and prepare a business plan detailing your anticipated rental returns from Airbnb-style letting.
3. Identify the Ideal Lender: Work with your mortgage advisor to find mortgage providers offering the best mortgage interest rates and terms suited for short-term holiday lets.
4. Fulfill the Deposit Criteria: To secure a mortgage contract, you typically need a deposit of at least 25% of the property’s assessed value.
5. Demonstrate Supplementary Income: Lenders may require proof of steady income alongside Airbnb income. As proof of income, you may need to provide pay slips or rental property financial records.
6. Obtain Holiday Home Insurance: Cancellations can impact your airbnb income, so securing additional insurance is crucial. A specialist buy-to-let broker can advise on cost-effective coverage for short-term rental properties.
7. Furnish the Property: Fully furnishing your investment property to meet Airbnb-friendly mortgage terms is essential for maximizing potential income and maintaining high booking rates.

Eligibility Criteria

The eligibility criteria for securing a commercial mortgage depend on various factors, including:

• Type of Letting: Whether you are opting for short-term lets, long-term basis, or a combination of both.
• Property Characteristics: If the property is a ‘non-standard construction’ house, mortgage companies may impose stricter lending conditions.
• Deposit Requirements: A buy-to-let mortgage typically requires a minimum deposit of 25%, but some lenders may offer bespoke approach solutions for borrowers with stability.
• Income Coverage: Lenders typically require proof that your projected Airbnb rental income is at least 125%-140% of your mortgage repayments.

How NeedingAdvice.co.uk can help you secure an Airbnb mortgage

Whether you’re considering a buy-to-let or commercial mortgage, our expert mortgage advisers can assist in securing the right mortgage type for you. From Buy-to-Let Mortgage Options to specialist buy-to-let broker assistance, we offer tailored finance options to meet your property investment goals.

Simply request a callback today, and we’ll arrange a complimentary, no-obligation consultation with a CeMAP-qualified mortgage adviser to discuss your approach to property investment. Our experienced broker team goes the extra mile to find mortgages for people with diverse property portfolios, whether for a beach house, city-centre properties, or long-term plans.

Get in touch today to explore your Airbnb mortgage experience, compare Airbnb mortgage rates, and discover an array of mortgage products suited for your short-term holiday rental.