Serviced Accommodation Mortgages

Raise up to 75% loan to value (LTV) on serviced accommodation mortgages

Serviced Accommodation Mortgages

Serviced Accommodation Mortgages

Serviced accommodation mortgages provide the borrower with a first-charge loan (mortgage) using an investment residential property as security.

With serviced accommodation mortgages the property can be rented out for short periods at a time, usually to a maximum of 3 months, in contrast to a buy-to-let mortgage.

Serviced accommodation mortgages are ideal for landlords that specifically wish to cater to Airbnb, contractors, and business travellers.

The mortgage repayments are covered by the serviced accommodation rental income, typically this is to a maximum of 75% loan to value (LTV) of the purchase or open market value of the property.

A serviced accommodation property may include a multi unit freehold building or may also be suitable depending on location as a holiday let. Serviced accommodation is a catch-all term that includes purpose-built apart-hotels and residential buildings that are used as short-term lets. A purpose-built apart-hotel will require a commercial mortgage rather than a serviced accommodation mortgage.

What is Serviced Accommodation

Serviced accommodation and Airbnb is where the property owner provides a fully furnished house, apartment, or room within a house that is available on a short-term stay, usually to a maximum of 90 days.

The term serviced accommodation can include providing hotel-like amenities such as room service and housekeeping daily or between stays.

Serviced accommodation, like Airbnb and a holiday let, will typically provide a kitchen or kitchenette, laundry facilities, Wi-Fi, living and sleeping areas, and other facilities.

How much can I borrow?

Serviced accommodation mortgages are to a maximum of 75% loan-to-value (LTV) of the purchase price or open market value (OMV) of the property and serviced accommodation mortgage providers will generally accept both freehold and leasehold properties.

Serviced accommodation properties with a short leasehold, generally less than 75 years remaining may be difficult to secure a mortgage against, although some lenders will consider fewer.

As a long-term product, serviced accommodation mortgage rates are highly competitive with a choice of both 2-year, 5-year fixed-rate and variable-rate terms available.

Indicative Terms

Get an understanding of how much you may be able to borrow with a serviced accommodation mortgage and at what terms prior to making an application. You can use Indicative Terms to show that you may be in a financial position to purchase a property with an estate agent or those selling a property.

Some benefits of using us

In addition to property valuations, building insurance, and legal support, we offer a wide range of additional services. For information on this, please see our Business Support Services and Trusted Partner Network.

Our business support and brokerage services include fully packaging and submitting your lending application proposal in addition to ensuring the most competitive rates and terms. We will ensure that your mortgage application is prepared quickly and efficiently. At the same time, we will keep you updated on your application’s progress in order that funds are available in the shortest possible time.

Our offer

In particular, we offer all our clients a truly ‘one-stop-shop’ facility, specifically to provide you with a fully managed and professional business support and brokerage service. Our mission is to secure the most competitive funding offer for your circumstance available from the whole of the market.

Whatever your property finance requirements, we offer a free, impartial, and confidential initial consultation and will quickly assess your funding options.

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Business Support – Serviced Accommodation Mortgages