As of May 2026, homeowners considering remortgaging need to be aware of the potential impact of listing their property on Airbnb. Darren Polson, head of mortgage operations at Aberdein Considine, advises that some lenders may not support Airbnb due to the short-term reliability of rent, increased wear and tear, and the need for specialist insurance.
Impact on Remortgage Scenarios
Scenario 1: First-time Remortgager at 90% LTV
Consider a first-time remortgager with a £200,000 repayment mortgage at a 90% loan-to-value (LTV) ratio. If their lender does not support Airbnb, they may need to switch to a lender who does, potentially affecting their monthly payments. For instance, if their current interest rate is 3.75% (the Bank of England base rate as of April 2026), their monthly payments would be £1,038. If they switch to a lender that supports Airbnb but offers a slightly higher rate of 4%, their monthly payments would increase to £1,074, an increase of £36 per month or £432 per year.
Scenario 2: Experienced Remortgager at 75% LTV
An experienced remortgager with a £250,000 repayment mortgage at a 75% LTV ratio who regularly lets their property on Airbnb may need to obtain their current lender’s permission with a consent-to-let. If they fail to do this, they could risk breaching their mortgage terms. For example, if their current interest rate is 3.75%, their monthly payments would be £1,297. If they breach their terms and their lender increases their rate to 4.25%, their monthly payments would rise to £1,359, a hike of £62 per month or £744 per year.
Scenario 3: Landlord with an Interest-Only Mortgage
A landlord with a £300,000 interest-only mortgage who uses Airbnb for short-term letting must also be aware of potential implications. If their current interest rate is 3.75%, their monthly payments would be £937.5. If they fail to secure a consent-to-let from their lender and their rate increases to 4.5%, their monthly payments would rise to £1,125, an increase of £187.5 per month or £2,250 per year.
Market Context
Compared to 12 months ago, the UK base rate has increased from 3.5% to 3.75%. This upward trend in interest rates could mean higher mortgage payments for those needing to switch lenders to accommodate Airbnb letting. However, some lenders do allow up to 90 days per year of short-term letting on a residential mortgage, which could be a viable option for homeowners. This is a significant shift from a year ago when fewer lenders were Airbnb-friendly, reflecting the growing popularity of short-term letting.
Frequently Asked Questions
Can I let my property on Airbnb if I have a mortgage?
Yes, but you need to get permission from your lender. Some lenders allow up to 90 days per year of short-term letting on a residential mortgage.
Will letting my property on Airbnb affect my remortgage?
It could, especially if your lender does not support Airbnb. You may need to switch to a lender who does, which could affect your interest rate and monthly payments.
What happens if I let my property on Airbnb without my lender’s permission?
You could risk breaching your mortgage terms, which could lead to penalties such as an increased interest rate.
What should I do if I want to let my property on Airbnb?
Contact your lender to ask if they allow short-term letting, get permission in writing, and ensure you have suitable insurance. Use a mortgage calculator to understand the potential impact on your payments.