Do mortgage lenders offer Airbnb or holiday let mortgages?

by Aaron Strutt

Aug 01 2019

If you are planning to use the Airbnb website to let your property or arrange short lets, you will need a specific type of mortgage or get permission from your current lender.

Most of the larger mortgage providers are not interested in providing Airbnb mortgages or allowing their customers to let their property on a short-term basis. It has been left to the smaller banks and building societies to fill the void.

Aaron Strutt, product director at Trinity Financial, says: “Metro Bank is still an excellent option for Airbnb as residential properties can be let for up to 90 days per annum.

“Lots of homeowners like the idea of letting their properties to generate some extra cash, but they do not know they should technically notify their lender or arrange a specific mortgage.”

Why don’t the lenders like Airbnb mortgages?

Lenders do not like the thought of properties being constantly let out to different people. They think there is an increased risk to the property and they are more interested in standard lender on a residential or buy-to-let basis, not a combination of the two.

Which lenders provide Airbnb mortgages?

Trinity Financial has access to a range of lenders offering Airbnb deals for purchases and remortgages. Our brokers regularly arrange mortgages through Metro Bank and Market Harborough Building Society, but there have recently been some new entrants into this part of the market.

Tipton for Intermediaries has a reputation for providing useful mortgages at competitive prices and it will now accept an application for second homes and holiday homes where borrowers plan to use Airbnb. This enables the client to rent their properties out on short or non-fixed-term agreements.

Foundation Home Loans recently launched a product suitable for Airbnb landlords looking to let their properties on short-term lets without the need for an assured tenancy agreement.

Bath Building Society provides Airbnb mortgages using its holiday let product providing the whole property is going to be let, rather than a single room. The applicant can use the property for up to 60 days per year.

Call Trinity Financial to arrange and an Airbnb or holiday let mortgage