The situation
Standard BTL mortgages don't allow short lets. Applying with an AST-based lender and running an Airbnb breaches terms. Holiday let mortgages exist specifically for this — designed around the income model.
How we approach it
We route to specialist holiday-let lenders. Occupancy projections need to be defensible (property manager report, comparables, historic booking data if you have it). Rate premium over BTL is real but manageable.
What that looks like in practice
- Typically 70-75% LTV on holiday let mortgages
- Occupancy-based income assessment (low/mid/high season blended)
- Ltd Co and personal both accommodated
- Coast, country and city-centre short-let all funded (different lender per profile)
- Refinance from BTL to holiday-let mortgage if strategy has changed
Typical timeline
- Weeks 1-2Property, occupancy projections, lender shortlist.
- Weeks 3-6Application, valuation.
- Weeks 6-10Completion.
Common questions
Can I run Airbnb on a normal BTL mortgage?
No — check your terms. Almost all BTL mortgages prohibit short-lets; running Airbnb breaches the mortgage and can trigger recall.
How is income assessed?
Blended occupancy across low/mid/high season with sensible haircuts. Property manager or letting-agent projection is standard.
Furnished holiday let tax status?
The FHL tax regime has changed materially — take tax advice. Doesn't affect mortgage availability but affects your net return.
Holiday lets, properly financed
Send the property and occupancy plan — we'll route to holiday-let specialists, not standard BTL lenders.