AIRBNB and Short-Term Let Mortgages – Personal – Limited Company – SPV

Landlords are now letting their properties via AIRBNB and short-term lets because of the higher rental returns they offer. Short-term lets allow landlords to rent out their properties for short periods ranging from a few days to six months.

Since the easing of COVID restrictions the number of lenders has increased substantially and the types of property that were previously declined are now acceptable. The guide below is a good starting point and may bring up points you had not considered.

Common queries

Types of ownership

There are currently three types of ownership available for AIRBNB and short-term let mortgage properties:

We recommend you take tax advice to confirm the most advantageous ownership route.

Can I use the property myself?

This is lender dependent. The maximum allowed is 90 days if the property is owned in personal name. If the property is owned by a SPV / Ltd Co the maximum is 30 days (lender dependent) but there could be tax implications. We recommend taking advice from your accountant.

What type of property can I purchase?

  1. The traditional holiday let will be acceptable to all lenders.*
  2. City centre properties flats / houses (detached, semi detached and terraced) are acceptable to a reduced choice of lenders.*
  3. Multi let – This a block of flats or a house that has been converted – you must own the freehold to the entire property, each flat can then be let individually. Reduced choice of lenders.

*Important: for 1 and 2 the property can only be let to one household and is a single contained unit

Where can I buy?

  • England and Wales – all lenders
  • Scotland – reduced choice of lenders

Minimum Deposit

The minimum deposit is currently 25% of the purchase price. However, this may reduce to 20% in the future.

How can I fund the deposit?

There are several options when it comes to raising the funds for a deposit on an AIRBNB property:

  • Savings
  • Remortgage – main residence / buy to let / holiday let
  • Inter Company Loan from trading company to Ltd Co / SPV
  • Funds in trading company
  • Gift from family member

How much can I borrow?

The amount advanced is based on the rental income not your personal income. There are two ways this is calculated.

  1. Traditional holiday lets – based on the current or projected holiday let income (high/medium and low season average).
  2. Non traditional holiday let properties – based on the rent of a 6 month assured short hold tenancy (AST). If the coverage fits on the AST basis you then rent out on a short let basis.

Can I switch between holiday let and rental let tenants?

We have only one lender who gives this option currently.

Do I have to be an existing homeowner?

You do not have to be an existing homeowner to purchase a holiday home but you will have very limited choice. If you are a residential home owner you will have access to all lenders and reduced choice if you just own just a buy to let property.

Do Lenders require a minimum personal income?

We have access to lenders who just require an income. You will have more choice of lenders if one applicant earns over £25,000.

Leasehold Properties

For leasehold properties we recommend you check with the selling agent that there are no restrictive covenants as a part of the lease prohibiting holiday let/AIRBNB.

How can I check that the property and rental income will meet lenders criteria

Just phone us for immediate advice or email us a link to the possible property and we will be able to confirm that the property/rent will match criteria and we will email back a ‘Key Facts’ Illustration detailing the lender and mortgage product.

Solicitor and Accountant Advice

As this lending is more specialist we recommend you speak to a solicitor and accountant before proceeding. If you do not have your own solicitor or account or feel that they do not have the specialist knowledge, we can recommend one for you. They will happily discuss over the phone your options and the implications of buying via an SPV/Ltd Co.

Why Use Neil Soundy Financial Services For Your Mortgage Advice?

  • We are experts in AIRBNB and SPV/Ltd Co lending.
  • Your initial consultation is free with no obligation.

Check out our client reviews

How Much Will It Cost Me For Your Advice?

A fee of £495 is payable on completion of the mortgage and Neil Soundy Financial Services Ltd will keep the commission received from the lender for arranging the mortgage.


Neil Soundy Financial Services Ltd is an appointed representative of HL Partnership Ltd which is authorised and regulated by the Financial Services Authority.

The Financial Conduct Authority does not regulate some forms of buy-to-lets.

We do not give or imply legal or taxation advice. We recommend you contact a solicitor or accountant for advice in these areas.

Think carefully before securing other debts against your home/property. Your home/property may be repossessed if you do not keep up repayments on your mortgage.