Can I get a mortgage for an Airbnb property?
The good news is yes, just as for a Holiday Let property, it is entirely possible to get a mortgage for an Airbnb property in the UK. However, the term ‘Airbnb’ (the trademarked name of the company facilitating short-term stay rentals) can cover a range of properties from traditional Holiday Lets to sections of a house, or sometimes just a single room, so the kind of mortgage you think you need may differ (or may not be suitable) according to the type of premises you are letting out.
And also, while the question above may seem like a simple one, in reality the answer isn’t simple at all. As with any type of mortgage, different lenders have different criteria that need to be considered, with some taking a tighter line with regard to deposits, proof of income, credit status, amount of time the property can be let out, etc, than others, meaning that some lenders (and their deals) may not be an option for you, depending on your exact circumstances.
So, before approaching a lender for an Airbnb mortgage, there are a number of factors that need consideration. Chief among them will be your investment strategy. As an Airbnb ‘host’, will you be letting out the whole property (the flat, house, cottage, etc.), or just part of it (like a studio room, or the downstairs rooms, for example) while still living in another section? This will make a big difference to how a lender will approach your mortgage.
It is also important to understand how many days in a calendar year the property will be available for letting, as this will affect its status as a Holiday Let (and therefore a business, where you can claim tax relief on the mortgage interest) or as a residential home. Speak to one of our advisers today to see how they may be able to help you find the most suitable mortgage for your Airbnb property.