Can I Airbnb My House If I Have a Mortgage

At Towerstone, we provide specialist property accountancy services for homeowners, landlords, and property investors. This article explains what you need to know to make informed decisions around this topic.

This is a very common question, especially as short-term letting has become more mainstream. Many homeowners look at Airbnb as a way to generate extra income, cover mortgage costs, or make better use of their home when they are away. The confusion usually comes from one point: having a mortgage changes the rules.

The short answer is sometimes yes and sometimes no. You are not automatically banned from using Airbnb just because you have a mortgage, but you cannot assume you are allowed to do it either. Whether you can Airbnb your house depends on your mortgage terms, your lender’s policy, your insurance, and in some cases local council rules.

In this guide I will explain how mortgages interact with Airbnb in the UK, what lenders typically allow, what happens if you do it without permission, and how to approach it properly so you do not put your home or finances at risk.

The Key Thing to Understand First

When you have a mortgage, you do not fully control the property in the way you think you do.

The lender has a financial interest in the property. Your mortgage agreement sets out what you can and cannot do with it. Airbnb is not just “having guests”. From a lender’s perspective, it is a form of letting.

That means the question is not “is Airbnb legal” but “does my mortgage allow this type of letting”.

Why Airbnb Is Treated Differently to Guests

Letting your friends or family stay over occasionally is not the same as Airbnb.

Airbnb involves:

Paying guests

Short-term stays

Regular turnover of occupants

Commercial use of the property

Because money is changing hands, lenders usually treat Airbnb as short-term letting, not casual use.

This distinction matters a lot.

What Most Residential Mortgages Say

Most standard residential mortgages include a clause that says something like:

“You must not let the property without our consent.”

This clause exists to protect the lender. Letting increases risk due to wear and tear, liability, and potential difficulties if the property has to be repossessed.

Short-term letting through platforms like Airbnb usually falls under this restriction.

Does That Mean Airbnb Is Always Banned?

No, but it does mean you need permission.

Some lenders are flexible. Others are not.

In broad terms:

Some lenders allow Airbnb with consent

Some allow it only occasionally

Some ban it entirely

Some allow it only if you live in the property

There is no universal rule across all lenders.

Live-In Hosts Versus Letting the Whole Property

This is one of the most important distinctions.

Airbnb While You Live There

If you rent out a room in your home while you continue to live there, many lenders are more relaxed.

This is often treated similarly to having a lodger.

Some lenders allow this without formal consent, others require you to notify them.

This is usually the lowest risk way to Airbnb with a mortgage.

Airbnb of the Whole Property

Letting the entire property, even for short periods, is treated much more strictly.

From a lender’s perspective, this looks closer to buy-to-let activity.

Many residential lenders will not allow this at all without changing the mortgage.

Buy-to-Let Mortgages and Airbnb

You might assume a buy-to-let mortgage solves the problem. It does not automatically.

Many buy-to-let mortgages are designed for long-term tenants, not short-term holiday style lets.

Some buy-to-let lenders specifically prohibit:

Airbnb

Holiday lets

Serviced accommodation

Others allow it with conditions.

You must check the wording carefully. Buy-to-let does not equal Airbnb friendly.

Holiday Let Mortgages

There are specialist mortgages designed for short-term letting and holiday accommodation.

These mortgages are:

More flexible for Airbnb style use

Often priced differently

Assessed on rental income potential

They are usually only suitable if Airbnb is a core plan, not an occasional side income.

What Happens If You Airbnb Without Permission?

This is where risk comes in.

If you Airbnb your property without lender consent, you may be in breach of your mortgage terms.

Consequences can include:

The lender demanding you stop immediately

Retrospective consent being refused

Higher interest rates or fees

In extreme cases, calling in the loan

Repossession is rare for first breaches, but it is not impossible if the issue is ignored.

Most problems arise when something goes wrong and the lender finds out indirectly.

Insurance Is Just as Important as the Mortgage

Even if your lender allows Airbnb, standard home insurance often does not.

Most standard buildings and contents policies exclude:

Paying guests

Commercial use

Short-term lets

If you Airbnb without the right insurance and something happens, your claim could be refused.

This is one of the most common and expensive mistakes people make.

Airbnb-Specific Insurance or Endorsements

If you are hosting, you usually need:

Specialist short-term let insurance

Or a policy endorsement allowing Airbnb

Do not rely on Airbnb’s own host guarantee as a replacement for proper insurance. It is not the same thing.

Your insurer must explicitly allow short-term paying guests.

Council and Lease Restrictions

In some areas, especially cities, there may be additional restrictions.

In London, for example, short-term letting of an entire property is limited to 90 nights per year unless planning permission is obtained.

If you live in a leasehold property, the lease may prohibit short-term letting entirely, regardless of your mortgage.

Mortgage consent does not override lease rules.

Tax Still Applies

Airbnb income is taxable.

Depending on how you use the property, this income may be:

Property income

Rent a Room income if you live there

Trading style income in some cases

You must declare the income and keep records.

Tax treatment is separate from mortgage permission.

When Airbnb Usually Works Best With a Mortgage

Airbnb is most likely to be allowed when:

You live in the property

You rent out a spare room

Letting is occasional rather than constant

You have lender and insurer approval

This setup is often accepted with fewer complications.

When Airbnb Is High Risk

Airbnb is higher risk when:

You let the whole property

You do it regularly

You have a standard residential mortgage

You have not informed your lender

You rely on Airbnb income to pay the mortgage

This is where problems tend to arise.

How to Do It Properly

If you are considering Airbnb with a mortgage, the safest approach is structured and transparent.

First, read your mortgage terms carefully and look for any clause on letting.

Second, contact your lender and ask specifically about short-term letting or Airbnb.

Third, speak to your insurer and arrange appropriate cover.

Fourth, check any lease or local authority restrictions.

Fifth, keep records for tax purposes.

Doing this upfront avoids nasty surprises later.

Common Myths About Airbnb and Mortgages

Many people believe that if Airbnb is only occasional it does not matter. That is not always true.

Others assume Airbnb’s host protection replaces insurance. It does not.

Some think lenders never check. In reality, lenders often find out through insurance claims, complaints, or refinancing.

The biggest myth is that “everyone does it so it must be fine”.

My Professional View

In my professional experience, Airbnb and mortgages can work together, but only when approached properly.

The biggest risks come from people who treat Airbnb as informal pocket money rather than a commercial activity that affects lending and insurance.

If you want to Airbnb occasionally while living in your home, many lenders will allow it with disclosure. If you want to Airbnb the whole property regularly, you should expect to need a different mortgage product.

Transparency is always cheaper than fixing a problem later.

Final Thoughts

So, can you Airbnb your house if you have a mortgage?

Sometimes yes, sometimes no.

You can only Airbnb legally and safely if your mortgage lender allows it, your insurance covers it, and you comply with any lease or council rules. Airbnb without permission can put you in breach of your mortgage and leave you uninsured.

If you are thinking about Airbnb, the right first step is not listing the property. It is checking your mortgage terms and speaking to your lender.

Done properly, Airbnb can be a useful income stream. Done casually, it can put your home at risk.

You may also find can i remortgage my house and can i sell a house with a mortgage useful. For wider guidance, explore our mortgage guidance hub.