Short-Term Let Mortgages: Financing Serviced Accommodation and Airbnb Properties

Short-term lets, from city-centre serviced apartments to properties listed on Airbnb and Booking.com, can earn more than a standard tenancy. But a normal buy-to-let mortgage almost never allows them. If you plan to let by the night or week, you need a mortgage designed for it.

Why a standard buy-to-let mortgage won't work

Most buy-to-let mortgage conditions require the property to be let on an assured tenancy to a private individual. Letting by the night breaks those terms. If your lender finds out, it can demand repayment or move you to a higher rate. Your landlord insurance may also be invalid for short-term guests.

Short-term let vs holiday let

The products overlap, but lenders often treat them differently.

Short-term let / serviced accommodation: typical locations are cities and business hubs. Guests are contractors, business travellers and city breaks. Demand is year-round and weekday-heavy. Lender pool: specialist buy-to-let lenders.

Holiday let: typical locations are coast, countryside and tourist areas. Guests are leisure holidaymakers. Demand is seasonal. Lender pool: specialist holiday let lenders.

For holiday lets in tourist areas, see: https://www.dynesourcer.co.uk/blog/complex-btl/holiday-let-mortgage-after-fhl

How lenders assess the income

This is the biggest difference between lenders, and it sets how much you can borrow.

1. Long-term rent basis. Many lenders ignore the nightly income and assess the loan on what the property would let for on a standard tenancy. It's simple and conservative, but it caps borrowing. 2. Projected short-let income. Some specialist lenders accept a projection of average weekly or nightly income from a surveyor or short-let agent, then apply a rental cover test with a stress rate. 3. Trading history. For established operators, a few lenders use accounts or booking platform data, especially across larger portfolios.

Expect a typical maximum loan-to-value of 75%, and stricter terms for newer operators.

Checks before you buy

• The lease. Many flat leases ban short-term letting, business use or anything other than a private residence. Read it before you offer. • Planning. In London, letting a home short-term for more than 90 nights a year needs planning permission. Elsewhere, rules are changing: https://www.dynesourcer.co.uk/blog/complex-btl/short-term-let-rules-2026-planning-registration • Licensing. In Scotland, all short-term lets need a licence from the council. • Safety. Gas and electrical certificates, smoke and carbon monoxide alarms and a fire risk assessment. • Insurance. A specialist short-let policy, not standard landlord cover. • Running costs. Cleaning, laundry, platform fees, utilities, council tax or business rates, and furnishing.

Find a short-term let mortgage

Select "Short term let" in the complex BTL calculator to test the numbers and see how income is assessed.

Compare short-term let mortgages in the complex BTL calculator. HMO, MUFB, MPOT, short-term let, holiday let and other specialist property types all use this same tool.

https://www.dynesourcer.co.uk/mortgages/complex-buy-to-let-mortgage-calculator

For standard single-let buy-to-let mortgages:

https://www.dynesourcer.co.uk/mortgages/buy-to-let-mortgage-calculator

FAQs

Can I Airbnb a property with a buy-to-let mortgage

Not usually. Most standard buy-to-let mortgages forbid short-term letting. You need a lender that allows it.

How much can I borrow on a short-term let

It depends on whether the lender uses long-term rent or projected nightly income. The second usually means a bigger loan.

Do I need experience

It helps. Some lenders accept first-time short-let investors who already own property.

Can I switch an existing buy-to-let to short-term letting

Only with your lender's agreement, or by remortgaging to a product that allows it.

Important information

Your property may be repossessed if you do not keep up repayments on your mortgage. Most buy-to-let mortgages are not regulated by the Financial Conduct Authority. Consumer buy-to-let mortgages, and mortgages where you or a close family member will live in the property, are regulated. Dynesourcer Ltd is an Introducing Appointed Representative of Dynamic Commercial Finance Ltd, which is authorised and regulated by the Financial Conduct Authority, FRN 946483. A broker fee may be payable on application; we will tell you the amount before you proceed. This article is general information, not personal advice or tax advice. Tax treatment depends on your individual circumstances and may change. Figures correct as at 29 October 2026.