Airbnb mortgages

Airbnb mortgage

Airbnb makes it easier than ever to rent properties to holidaymakers.

You may be curious about the best type of mortgage to use if you are looking to rent out your property. What factors can impact your ability to finance your Airbnb property?

Send us an enquiry to learn more about Airbnb mortgages. We will match you with a broker to help you find a mortgage provider.

We have a few mortgage providers lending who will find you the best mortgage deal.

Use our online mortgage calculator as a guide for your monthly repayments now

Can I get a mortgage to finance an Airbnb property?

It is possible to obtain an existing mortgage if you want to be an Airbnb host in the UK.

There are some key points you need to remember from the beginning.

• Do you want to rent out your entire home or just a few rooms?
• Do you need to have the consent of an existing lender if you already have a mortgage?
• How long will your property remain available for rent on Airbnb?

Airbnb hosts have different rules depending on the type of mortgage they require and which lender they approach to borrow.

These points can vary from one lender to the next, as described in the sections below. A specialist broker can give you the best advice regarding your particular situation.

Unless you are a specialist broker, you only have access to a third of the Buy To Let mortgages. To unlock the entire market of Airbnb mortgages, get started by enquiring here today. Each mortgage broker is regulated by the financial conduct authority.

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What types of mortgages are available to Airbnb properties?

Your intentions as a host will determine the type of mortgage that you can use for Airbnb properties.

Can I host Airbnb if I have a mortgage on my home?

Yes. You should first inform your existing lender. Most residential mortgage providers won’t allow Airbnb-type lettings without prior consent.

Most lenders will not allow you to rent your entire property out on Airbnb if this is considered a violation of the original mortgage rules.

Because residential mortgages are intended for homes that you use as your primary residence in the UK, not for earning money from them,

If you intend to rent out your entire property, you might need to convert your residential mortgage into a buy-to-let one. However, you should consult an expert before you make a significant financial decision.

Lenders will likely approve if you intend to rent one room in your home on Airbnb. The owner would still be present on the property.

Are you looking for a mortgage to buy an Airbnb property?

A buy-to-let mortgage (BTL) is the best form of lending if you want to purchase a property solely for renting it out on Airbnb.

Many lenders will accept Airbnb-type lettings as mortgages, limiting how long the property can be rented out during one calendar year.

Some people will wait up to 90 days, while others may take up to 16 weeks or even six months.

Send us an enquiry to learn more about Airbnb property buy-to-let mortgages. We will be happy to refer you to the appropriate broker.

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Can I host an Airbnb guest if I have a commercial mortgage?

Commercial mortgages are used to borrow money on commercial properties for business activities. They are therefore only available for Airbnb hosts who have particular needs.

Professional landlords who have large portfolios may be able to apply for a commercial mortgage for Airbnb properties. This depends on the strength and condition of the application.

Can I use a residential mortgage to holiday let a property in the UK for Airbnb?

It is possible. Some lenders consider holiday let mortgages the best form of lending for Airbnb-type lettings, as they are usually rented out on short-term terms.

Airbnb hosts are the ones who are launching most of the new mortgages for holiday lets.

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Can I use my Airbnb rental income for my residential mortgage payment?

Yes, it’s possible. It is possible to use Airbnb rental income for your mortgage. You must show sufficient evidence to prove that the income is enough to cover the required amount.

Lenders will require a record of payments for three years. Some may need two years, while others may only accept twelve months. Lenders may be more attentive to Airbnb hosts’ expected income, as rentals are usually short-term.

They might ask for proof of income such as a salary, pension, or investments to ensure that the mortgage payments are covered.

Contact us to find out more about which type of mortgages are best suited for an Airbnb property.

What does Airbnb do to my residential mortgage?

You must notify your lender of your intention to use your house for Airbnb hosting. It may be necessary to show that you originally intended to live in the property and not rent it out.

Lenders will often charge an arrangement fee for consent to let.

They could also increase the interest rate to account for this change.

The mortgage terms and conditions could be breached if the entire property is available through Airbnb.

Lenders may request that the loan be entirely repaid in these circumstances including any mortgage interest on the loan.

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Which mortgage lenders will allow Airbnb properties?

As Airbnb continues to grow in popularity, so does the number of mortgage lenders that provide financial support for Airbnb properties.

The latest figures show more than 223,000 UK listings for Airbnb at the time of writing.

Lenders will offer different terms and types of loans. Many people hire an independent advisor to help search the market.

Send an enquiry to find out which lenders offer the best deals for Airbnb hosts.

How to get the best Airbnb Mortgage Rates

It is essential to demonstrate strong proof of affordability to secure the best rates on an Airbnb mortgage.

Having a track record of rental income from your property is also essential. You will more likely attract lenders offering the best rates if you show that your payment can cover the repayments.

The following factors can also influence the interest rate:

Type of property

Each lender is different, but most won’t accept non-standard or unique property. They may fear that the properties could pose a higher risk and be more challenging to sell.

Some lenders will consider all types of properties.

This non-standard property guide provides more information.

Credit history

Poor credit history will most likely affect your Airbnb mortgage application. It will also influence the interest rate that you might have to pay.

Lenders have different rules, and this will affect the decision. Some lenders may not accept these applications, while others may consider them depending on the circumstances.

You can visit our page to learn how to obtain a mortgage with poor credit.

Deposit

Your deposit size will influence your mortgage interest rate, especially for a new venture like an Airbnb rental property.

As this provides more security and comfort for the lender, your deposit will be higher.

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Where can I find the right advice about Airbnb mortgages?

Call us today to talk with someone about becoming an Airbnb host or submit an enquiry if you are interested in learning more about Airbnb mortgages.

Our advisors have extensive experience in these areas and can help you in any situation.

Get started online

 

Airbnb mortgages FAQ

Can I use my second mortgage to finance an Airbnb?

A second mortgage can be used to purchase a property you wish to rent through Airbnb.

Most mortgage lenders will evaluate your ability to pay the loan. They will only be interested in the viability and investment.

Learn more about how a lender may assess a request for a second mortgage for rental purposes in our second mortgage guide.

Is it possible to use a mortgage calculator to finance my Airbnb?

Many mortgage lenders and websites offer online mortgage calculators. We have a buy-to-let mortgage calculator that we host on our website.

These are a great tool if you need to know how much money you can borrow and what monthly payment you will have to make for a property you love.

Mortgage calculators such as this one are not based on the same algorithms, so they can’t give you a precise or reliable answer.

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What is the average Airbnb income?

The income from Airbnb will depend on the location, how frequently they are available and what property it is.

The insight report that the platform produced in 2018 indicated that the average annual earnings of a host were just above £3,000.

Is the interest in my Airbnb mortgage tax-deductible?

You may be eligible to deduct tax from mortgage payments made on your Airbnb rental property.

You might also be liable for:

• Rent
• Cleaning costs
• Commissions for rental
• Insurance.

You can find out more by contacting us or requesting tax advice.

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Can I get a mortgage to rent an Airbnb in Scotland

There’s no reason to think you can’t get a mortgage to rent an Airbnb property in Scotland. However, it can be subject to rules regarding renting out property during the Edinburgh Festival.

It is wise to ensure you can achieve your goals before you commit to any investment plans.

What should I do if I am a victim of Airbnb fraud?

Your mortgage shouldn’t be affected if you get permission from your mortgage lender to rent your property to Airbnb tenants.

If your credit score is affected by fraud or other issues, such as if you have defaulted on your mortgage payment, it could lead to bad credit.

Talk to one of our expert advisors to avoid this. They will discuss your plans with you and help you find a mortgage you can afford. This could be the difference between success and failure.

Are UK lenders willing to mortgage overseas Airbnb properties?

Major UK lenders will have overseas operations that can offer local expertise and knowledge on various banking services, including mortgages for Airbnb properties.

Send an enquiry if you are interested in being an Airbnb host.

Then, we will get in touch with a mortgage advisor with experience in Airbnb properties.

Where can I find the right advice about Airbnb mortgages?

Call us today to talk with someone about becoming an Airbnb host or submit an enquiry if you are interested in learning more about Airbnb mortgages.

Our advisors have extensive experience in these areas and can help you in any situation so contact us today to get the best advice.

Get started online