An Airbnb or holiday let needs its own kind of mortgage.
A holiday let mortgage funds a property you let short-term to holidaymakers rather than on a standard tenancy. Lenders assess it on projected seasonal income — typically low, mid and high-season weekly rates averaged — not the single monthly rent used for buy-to-let. Fewer lenders offer them, and criteria vary widely. As a whole-of-market, FCA-authorised brokerage, we know which ones lend and on what basis.
- Assessed onRental incomeInterest cover ratio (ICR) stress-tested
- StructurePersonal or SPVLtd company buy-to-let available
- PortfoliosWelcomeMultiple properties considered
- AdviceWhole-of-marketDirectly FCA authorised — most BTL is unregulated
Why a standard BTL mortgage won't do
A normal buy-to-let mortgage assumes a single tenant on an assured shorthold tenancy. Short-term holiday letting breaches those terms, so you need a dedicated holiday let product. Lenders here accept variable, seasonal occupancy and assess income differently.
How lenders assess the income
Most take an average of low, mid and high-season weekly rates — often from a letting agent's projection — and apply a rental cover calculation to it. A track record of bookings helps, but many lenders accept projections for a first purchase. Expect deposits around 25–35%.
Furnished holiday let tax and rules
Furnished holiday lets have had distinct tax treatment and specific occupancy conditions; these rules change, so take current tax advice. Some areas also require planning consent or licensing for short-term lets — worth checking before you buy.
Contractors and holiday lets
Buying a holiday let on day-rate income? We combine holiday-let criteria with contractor-friendly assessment — the same approach as buy-to-let for contractors. Considering an SPV? See limited company & SPV buy-to-let.
Talk it through
Speak to an adviser with the property and any rental projections for a tailored quote.
Holiday let lenders — a selection
Lender guides: Halifax · Barclays · HSBC · NatWest · Nationwide · Accord · Clydesdale · Yorkshire BS · Kensington See how we place cases →
Holiday Let Mortgages, answered
What is a holiday let mortgage?+
It's a mortgage for a property let short-term to holidaymakers. Lenders assess it on projected seasonal rental income rather than a single monthly rent, and it's a different product from standard buy-to-let.
Can I use a normal buy-to-let mortgage for an Airbnb?+
No. Short-term letting breaches standard buy-to-let terms; you need a dedicated holiday let product that permits it.
How much deposit do I need?+
Typically 25–35%, though it varies by lender and property. A larger deposit widens choice.
Do I need a letting history?+
Not always. Many lenders accept a professional rental projection for a first holiday let, with a track record helping on rate and choice.
Can I live in it part of the year?+
Some lenders allow limited personal use; others don't. We match you to a lender whose rules fit how you plan to use it.