Fancy yourself as an Airbnb landlord? Make sure your mortgage complies!

What is Lombard Lending?
Wednesday November 6, 2019

The rise of sites such as Airbnb and HomeAway has been phenomenal. Since launching just over a decade ago, the market leader Airbnb has recorded more than six million rooms, flats and house listings in more than 81,000 cities across the globe. In London alone, there were more than 77,000 homes listed in Summer 2019, representing a fourfold increase since 2015.[i] 

What some may not realise is that, if you’re purchasing real estate with the intention to let it out as a holiday home, your mortgage provider needs to know that information and you will need a specialist product to suit your requirements.

Case profile

Our clients were looking to purchase an eight bedroom Victorian manor house which they planned to renovate into a holiday home and subsequently rent out. The difficulty came in the detail; most buy to let mortgages on holiday homes limit the property size to four bedrooms. Additionally, the clients were looking for £200,000 more than the usual borrowing limit on holiday let mortgages.


We scoured the market and approached a lender to negotiate the client’s requirements. In addition to concessions over both the size of the property and the mortgage, we were able to agree that the clients would be allowed to live on site during the planned renovation works, something which is not usually allowed with buy to let holiday home properties.

Deal Highlights

Loan amount:
2.49% discounted rate for the mortgage term
Loan To Value:31%
APRC:Overall cost for comparison 2.70% APRC representative variable
Term:12 Years
Type:Interest only
Loan purpose:Holiday buy to let
Lenders arrangement fee:1.50% of loan amount
Early repayment charge:
5% of the outstanding loan amount in the first year, reducing by 1% year on year for 5 years


Overall cost for comparison 2.70% APRC representative variable based on 144 monthly payments at a discounted rate of 2.49%. Total amount to be repaid is £656,623. 

Because part of the loan is a variable interest rate loan, the actual APRC could be different from this APRC if the interest rate for your loan changes. For example, if the interest rate rose to 10.74%, the APRC could increase to 11.50%. The actual rate and product available will depend upon individual circumstances and may not be available to everyone. Ask for a personalised illustration. 

Your home or property may be repossessed if you do not keep up repayments on your mortgage.

The Financial Conduct Authority does not some aspects of Buy to Let mortgages.

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Our insights

We are the UK’s leading specialist in delivering innovative and bespoke financing solutions to global clients.


Specialists in creating innovative and bespoke funding solutions.

Your home or property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Changes in the exchange rate may increase the sterling equivalent of your debt. You may have to pay an early repayment charge to your existing lender if you remortgage. Think carefully before securing any other debts against your home. is a trading name of Ltd, Aegon House, Ground Floor Suite, 13 Lanark Square, London, E14 9QD authorised and regulated by the Financial Conduct Authority (FCA). Our FCA registration number is 302228 and can be viewed by visiting the FCA website: The FCA does not regulate tax advice or some aspects of commercial, buy to let, overseas mortgages, bridging finance, finance and asset lending. Ltd is a licensed credit broker, and not a lender. Ltd Registered in England and Wales No: 5070990 Registered Address: As above. The guidance and advice contained within the website are subject to the UK regulatory regime and is primarily targeted at UK customers. Calls may be recorded for training and monitoring.
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Largemortgageloans is a trading name of Ltd, Aegon House, Ground Floor Suite, 13 Lanark Square, London