Holiday Lets and Airbnb

What Is a Holiday Let Mortgage?

A holiday let mortgage is a specialist type of finance designed for properties that are rented out on a short-term basis to holidaymakers, rather than on standard Assured Shorthold Tenancies (ASTs). These mortgages allow you to let out the property for short stays, either directly or via platforms like Airbnb, Vrbo, or Booking.com.

How Is a Holiday Let Mortgage Different from a Standard Buy-to-Let?

Unlike traditional buy-to-let properties, holiday lets are assessed differently by lenders. 

The key differences include:

Income based on projected short-term rental income, not AST rental
 

Property must be available for holiday letting for a minimum number of days per year
 

Some lenders require a minimum number of bookings or evidence of letting potential
 

Properties used purely for personal use may not qualify
 

We help you navigate these lender-specific requirements to secure the right mortgage for your goals.

Can I Use Airbnb with a Holiday Let Mortgage?

Yes, many lenders now allow Airbnb or other short-term rental platforms, provided the property meets criteria such as being furnished, available for public bookings, and compliant with local regulations. Some lenders may limit how often you use the property yourself or require evidence of income projections from Airbnb letting.

Do I Need to Own the Property in My Own Name or a Limited Company?

Holiday let mortgages are available to individuals, joint applicants, and limited companies (SPVs). We can help you explore both personal and limited company mortgage options, depending on your tax planning and investment goals, once you have discussed these with your accountant.

Can I Get a Mortgage for a Holiday Let If I’m a First-Time Landlord?

Yes, this may be possible dependant on lenders policy, some lenders will accept first-time landlords, although others may require you to have some property or letting experience. We’ll find the lenders that suit your profile, whether you’re just starting out or expanding an established portfolio.

What Kind of Properties Can Be Financed as Holiday Lets?

You can typically mortgage:

Holiday cottages and seaside homes
 

City-centre flats aimed at business travellers
 

Countryside lodges, cabins, or barn conversions
 

Properties in tourist hotspots or near transport hubs
 

Second homes let out for part of the year
 

Some lenders may have restrictions on location or property type, we’ll help identify options tailored to your chosen area.

How Much Can I Borrow on a Holiday Let Mortgage?

Most lenders base affordability on projected holiday rental income rather than long-term rents. 

You may be able to borrow:

Up to 75% loan to value (LTV)
 

Based on peak-season and average occupancy forecasts
 

With rental assessments provided by specialist agents or Airbnb track records
 

With personal income considered if needed to support affordability
 

We’ll work with you to present a strong case to the lender, including income forecasts and occupancy assumptions.

Do I Need a Deposit for a Holiday Let Mortgage?

Yes a typical deposit is 25%, though some lenders may accept slightly less with strong financials. A larger deposit may help you access better rates or reduce affordability hurdles.

Can I Use the Holiday Let Myself?

Yes, some lenders allow some personal use, typically up to 90 or 120 days per year, but you must still meet criteria for commercial letting. We’ll help you understand the balance of personal use versus commercial income to meet lender requirements.

Do I Need to Use a Holiday Letting Agent?

Not always. You can manage bookings yourself via platforms like Airbnb or use a holiday letting agent. Some lenders may require evidence of bookings or projections from a managing agent. We’ll help guide you based on the lender’s requirements and your preferred approach.

Do Holiday Let Mortgages Have Higher Interest Rates?

Rates can be slightly higher than standard buy-to-let products due to the specialist nature of the property and income. However, competitive deals are available, especially if you have a strong deposit and the property has strong letting potential.