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Serviced accommodation mortgages depend on how the home is used. A residential mortgage needs consent before any letting. Many buy-to-let mortgages assume standard tenancies, so short stays or company lets need lender permission. Full-time short-stay use usually needs a holiday let mortgage. Letting without permission can breach the mortgage.
This is a general guide, not financial adviceLender criteria vary and change. Speak to your lender or a mortgage broker before letting.
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Which mortgage do you need for serviced accommodation?
The right mortgage depends on whether the home is your residence, a standard rental or a dedicated short-stay property.
| Mortgage | Typical use | Serviced accommodation |
|---|---|---|
| Residential with consent to let | Temporarily letting your own home | Rarely suitable, check terms |
| Buy-to-let | Letting to tenants | Only with lender permission for short stays or company lets |
| Holiday let | Letting to short-stay guests | Usually the closest fit |
Indicative only. Lender criteria differ.
Do lenders allow company lets?
Some buy-to-let lenders allow company lets with permission, and others do not. A company let to an operator running serviced accommodation is a different risk from a tenancy, so ask your lender directly and get the answer in writing.
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Every property and lender is different. Photo from Pexels.
What happens if you let without mortgage consent?
Letting without permission usually breaches your mortgage terms. The lender could add charges, change your rate or, in serious cases, ask for the loan to be repaid. Insurance may also be affected.
Insurance matters too. Read our guide to serviced accommodation insurance.
What are holiday let mortgages like?
Holiday let mortgages are specialist buy-to-let products for homes let to short-stay guests. Lenders often limit borrowing to around 75% of the value and assess affordability on projected letting income.
The GOV.UK guidance for self-catering homes sets out the wider rules that sit alongside your mortgage.
What does Esho Stays need from owners?
Before we take on a home, we ask owners to confirm mortgage, lease and insurance permission for a company let used as serviced accommodation.
- Esho Stays becomes your tenant under a company lease
- Rent is paid in full every month, even if the property is empty
- We list the home across major booking platforms and our direct network of more than 30 companies
- We handle bookings, guest screening, communication, cleaning and maintenance
- Regular inspections, with cleaning between every stay
- A landlord dashboard showing upcoming bookings and performance
See our rent to serviced accommodation guide.
Frequently asked questions
Can I use a buy-to-let mortgage for serviced accommodation?
Sometimes, but only with your lender’s permission. Many buy-to-let mortgages assume standard tenancies and restrict short stays or business use. Ask your lender whether serviced accommodation or a company let is allowed, and get the answer in writing.
What is consent to let?
Consent to let is permission from a residential mortgage lender to let your home temporarily, often for around 12 months. It is designed for owners moving away for a while, not for running serviced accommodation, and usually comes with conditions and fees.
Are holiday let mortgages more expensive?
Holiday let mortgages often have higher rates and lower maximum loan to value than standard buy-to-let mortgages, reflecting the different risk. Terms vary widely between lenders, so compare options through a specialist broker.
Do I need to tell my lender about a guaranteed rent agreement?
Yes. A guaranteed rent agreement is a company let, and your lender needs to know how the property is used. Some lenders allow company lets and others do not. Get written permission before the lease begins.
Next step
Checking your mortgage options?
Tell us about your property, and we will explain what our company lease involves for your lender.
