Can I Airbnb My House with a Mortgage

Letting your home on Airbnb can seem like an easy way to earn extra income, especially if you live in a popular area or plan to be away for an extended period. However, if your property is mortgaged, the situation becomes more complex. While many homeowners in the UK do rent out their properties on short-term platforms like Airbnb, doing so without the right permissions can breach mortgage terms and lead to serious consequences.

This article explains how mortgages affect your ability to host on Airbnb, what permissions you may need, and the steps to take before listing your property.

Does your mortgage allow short-term letting?

Most standard residential mortgages in the UK are intended for owner-occupiers. That means lenders expect you to live in the property as your primary home. Renting out all or part of the house on a short-term basis, as you would on Airbnb, often falls outside these terms. If your lender does not explicitly allow holiday or short lets, doing so could breach your mortgage agreement.

This does not mean it is impossible, but you must contact your lender first. Some lenders will permit occasional Airbnb letting if you are living in the property and only letting it out when you are away for short periods. Others may require you to switch to a specific mortgage product that allows holiday lets or short-term rentals.

Buy-to-let and consent to let

If your home is already mortgaged as a buy-to-let, you may assume you can list it on Airbnb. However, most buy-to-let mortgages are designed for long-term tenancies with assured shorthold tenancy agreements, not nightly or weekly holiday rentals. You must check your terms carefully. In many cases, lenders will require you to change to a specialist holiday let mortgage if you want to run an Airbnb business from the property.

For residential homeowners who want to let their property temporarily, some lenders offer what is called 'consent to let'. This is formal permission to rent out your home while retaining your residential mortgage. Some lenders include clauses in their consent that restrict short-term lettings, while others allow it for a limited time or under specific conditions.

What if you let without permission?

Letting out your home without informing your lender can put you in breach of your mortgage contract. If the lender finds out, they could demand immediate repayment of the loan or take legal action. This risk is especially high if the property is damaged while let or if your insurance does not cover short-term guests.

Even if you only let out a room in your house occasionally, it is still wise to check with your mortgage provider. Policies vary widely between lenders, and what is allowed by one bank may not be permitted by another.

Do you need other permissions or approvals?

In addition to your mortgage terms, you may need to consider other factors. If your property is leasehold, your lease agreement might restrict short-term lettings altogether. Many leases include a clause that prevents subletting or requires the property to be used as a private residence only. Breaching lease terms can lead to fines, legal disputes or enforcement by the freeholder.

If you live in a flat or shared development, there may also be rules set by the management company or residents' association. Noise complaints and concerns over security often lead to bans on Airbnb-style lets in these settings.

Some local authorities have planning rules that restrict the use of homes for short-term holiday lets. In London, for example, you can only rent out your home for up to 90 nights per year without planning permission. Other councils are beginning to impose similar restrictions in popular tourist areas. Always check with your local council to avoid fines or enforcement notices.

Do you need specific insurance?

Standard home insurance policies do not usually cover short-term lets. If you rent out your house or even a room to paying guests through Airbnb, you may need to take out specialist holiday let insurance or a specific Airbnb host policy. This covers public liability, accidental damage and guest-related incidents that standard insurance may not include.

Some mortgage lenders will also require you to prove that appropriate insurance is in place before approving your letting plans.

How to get started the right way

If you are considering letting out your mortgaged home on Airbnb, start by reviewing your mortgage contract and contacting your lender for written permission. Be prepared to switch to a more suitable product or seek consent to let. Check your lease, local planning rules and insurance policies to ensure you are fully covered and compliant.

Listing your home without approval may be tempting, but the risks include invalidating your mortgage, breaching your lease or being fined by your council. Taking the correct steps early on will protect you from legal issues and give you peace of mind while hosting.

Conclusion

You can Airbnb your house if you have a mortgage, but only with the correct permissions in place. Many lenders restrict or prohibit short-term letting under standard residential terms, and breaching these can lead to serious consequences. By checking with your mortgage provider, securing the right insurance and understanding your legal obligations, you can let your property safely and within the rules. Hosting can be rewarding, but only if you take the time to do it properly.