Serviced Accommodation Mortgages
A serviced accommodation mortgages allow the borrower a first charge loan using an investment residential property as security.
A serviced accommodation mortgage allows the property to be rented out for short periods of time, usually up to 28 days per booking. Serviced accommodation mortgages are ideal for landlords that wish to service the Airbnb, staycation market and business traveller that prefers the flexibility of not staying in a hotel.
Mortgage payments are covered by the rental income received from the serviced accommodation.
How much can I borrow?
Typically a serviced accommodation mortgage will be up to 85% loan to value (LTV) of the open market value (OMV) of the property.
The majority of Lenders will consider serviced accommodation properties with either Freehold or a long Leasehold favourably, properties with a short Leasehold remaining may be more difficult to secure funding on.
As a long-term product, serviced accommodation mortgage rates are highly competitive with a choice of fixed-rate and variable-rate terms.