Flexible Serviced Accommodation Finance to Help You Build and Grow Your Portfolio
Turning a property into a short-term let – such as an Airbnb or serviced apartment – can be exciting, but getting the right finance is not always easy. At Commercial Finance Network, we specialise in helping homeowners, developers and investors secure flexible, competitive funding for serviced accommodation and holiday lets.
Unlike traditional brokers, we understand this market’s ups and downs, and we work across our full range of lenders to find a solution that fits your project. Whether you are converting, refurbishing, or scaling, we will guide you every step of the way – with clarity, honesty and speed on your side.
Serviced Accommodation Mortgage and Airbnb Finance Available For:
- New-build properties
- Holiday let conversions
- Short-term serviced apartments
- Customised buy-to-let finance for serviced accommodation
- Major and minor refurbishments
Letting residential properties on an ad-hoc, short-term basis is a trend that has been in motion for well over a decade. Over the last two years, we have seen this trend culminate in a full-blown investment boom, with thousands of investors, developers and homeowners exploring this option for generating returns on their properties.
Unfortunately, things are not always that easy.
Banks and other high-street lenders have a track record of rejecting serviced accommodation finance applications across the board. It is not uncommon to find homeowners and developers struggle to recoup their investments simply because they could not raise the money.
Commercial Finance Network – a leading whole-of-market finance broker in the UK – has helped many clients overcome this resistance and access funding in the rental sector. We offer customised and flexible serviced accommodation mortgages and Airbnb mortgages to qualifying homeowners, developers and property investors.
Key Features of Our Serviced Accommodation Finance and Airbnb Finance (Business and Holiday Let Finance)
- Every serviced apartment loan we broker is customised to meet your exact needs.
- We offer scalable, borrow-as-you-need holiday let finance and serviced accommodation loans for nearly every stage of your project – from minor refurbishments to major conversions.
- If you are a property developer looking to undertake build-to-let projects that involve serviced apartments, holiday lets or short-term rentals, we can offer end-to-end serviced accommodation finance through our development finance services.
- For homeowners looking to convert their residential properties into serviced accommodation, we can offer flexibly structured serviced accommodation loan solutions along the lines of HMO finance.
- Specialist finance solutions for Airbnb rentals and holiday lets.
- Serviced apartment finance packages starting from £50,000.
- Competitive LTV ratios available for serviced accommodation loans, typically up to 75-80% depending on the lender and the deal.
- Full range of buy-to-let mortgages available across UK lenders.
- Fast processing – we aim to be in touch with you within 24 hours of applying.
What is Serviced Accommodation?
Serviced accommodation refers to residential properties let on a short-term basis. The rental period could be anywhere between one day and a few weeks. In most cases, serviced accommodation is used by tourists (holiday rentals) and business travellers (serviced apartments).
What sets serviced accommodation apart from regular buy-to-let, build-to-let or HMO properties is the flexibility of rentals and the amenities provided. A well-run serviced apartment in a busy business district can, in the right location, yield significantly higher rental income than an equivalent AST – though actual returns vary with occupancy, season and local demand.
Why Take a Serviced Accommodation Mortgage or Holiday Let Loan?
A serviced apartment loan or a holiday let loan is important on two counts:
- It helps you complete the conversion, build or refurbishment quickly without having your money tied up as a lump sum in the project.
- By clearing the financing bottlenecks, serviced accommodation loans move the project along. The quicker you can start letting, the faster you recoup the costs.
A serviced apartment finance package is similar to other commercial property loans. The lenders assess your project, attach a value to it, and provide a loan offer that is proportionate to that value, with the loan granted once all other terms are fulfilled.
So far, so good.
But there is another angle to serviced accommodation loans and holiday let finance packages – one that most lenders and banks will not talk about.
The acceptance rates for such loans are among the lowest in the commercial finance sector, for one simple reason – many lenders still do not fully trust the income potential of such properties. In practice, this means projected income is often discounted and stress tested heavily – we explain exactly how lenders assess serviced accommodation income in our detailed guide.
As an established whole-of-market broker in the UK, we at Commercial Finance Network are proud to be among the first mainstream brokers to offer full serviced accommodation loans to developers, investors and homeowners.
Serviced Accommodation Finance for Developers
We offer end-to-end development finance solutions for build-to-let serviced accommodation projects. These development loans cover a wide range of development costs, allowing you to focus on getting the best returns.
Serviced Accommodation Loans for Homeowners
Catering to professionals and business travellers means you need to furnish your property with high-quality amenities.
If you own a residential property that you want to convert into a serviced apartment, we can offer competitively priced serviced apartment loans that help cover conversion costs, interior design, furniture, utilities and other associated expenses.
Holiday Rental Loans and Airbnb Rental Loans
Holiday letting is a trend on the rise. Tourists and vacationers often prefer a local holiday let for the duration of their stay over hotels or B&Bs when they are travelling with family.
For homeowners and investors looking to invest in such opportunities, we offer comprehensive holiday rental loans that are structured much like regular buy-to-let and HMO mortgages. If you are planning to buy a property and turn it into a specialist Airbnb rental, our lenders can offer attractive Airbnb rental loans, along with their expertise.
Why Choose Commercial Finance Network?
As we mentioned earlier, many lenders are cautious about offering serviced accommodation finance. The underlying reason is fairly easy to understand.
Unlike buy-to-let, HMO or build-to-let projects, serviced accommodation is inherently more unpredictable. There is no guarantee that your property will have year-round occupancy. The lack of fixed monthly income makes such loans riskier propositions for lenders.
Commercial Finance Network removes the hassle from serviced accommodation finance. We work with lenders who specialise in the short-term rental sector, helping to improve your chances of securing a serviced accommodation loan that suits your project.
Here are a few features that make our serviced accommodation finance services stand out:
- There are not many commercial finance brokers who handle the specific requirements of the serviced accommodation sector. We are proud to be among the first.
- Like all our commercial finance services, the serviced accommodation loans we broker are fully customisable to meet the needs of your project.
- We have a panel of diverse, responsible and specialist lenders. By applying for a serviced accommodation loan with us, you reach all of them together, instead of sending out dozens of applications.
- Our serviced apartment loans and holiday let finance packages aim to offer competitive rates, flexible repayment schedules and a strong likelihood of approval through the right lender.
- As a national whole-of-market broker, we work with clients across every UK region.
- Our customer service team is available to support you throughout your application.
FAQs – Serviced Accommodation Mortgage
What exactly is a serviced accommodation mortgage?
It is a mortgage built for property you let out on a short-term basis – think Airbnb, Booking.com or serviced apartments.
Rather than the fixed yearly tenancy a standard buy-to-let assumes, it is geared around short guest stays and higher turnover, which gives you far more flexibility as an investor.
How is a serviced accommodation mortgage different from a normal buy-to-let?
A buy-to-let is built for long-term tenants on yearly contracts, whereas serviced accommodation is all about short stays – a few nights or weeks at a time.
Lenders also assess your income differently, because short-term takings rise and fall with the seasons rather than sitting at a flat monthly figure.
Can I get one if I am new to serviced accommodation?
Yes – plenty of lenders are happy to work with first-time investors.
A solid plan or some existing property experience helps your case, and we point newcomers towards the lenders who accept that everyone has to start somewhere.
What kind of properties can I use serviced accommodation finance for?
Almost any type – city-centre flats, seaside cottages, converted houses, even holiday lodges.
What matters is that you are letting it short-term rather than on a standard tenancy. Lenders mainly weigh up location, local demand and the income the property can realistically bring in.
Are serviced accommodation mortgage rates higher?
Rates are usually a little higher than standard buy-to-let, but not dramatically so.
Short-term lets can earn considerably more, so many landlords find the added flexibility worthwhile. Your actual rate depends on factors such as credit history, experience and the lender’s appetite for the property type.
Can I remortgage my current property for serviced accommodation?
Yes – many landlords move across from a standard buy-to-let to a serviced accommodation mortgage so they can start earning from short stays.
You can also look to release equity at the same time to fund upgrades or put towards your next property – a useful way to keep the portfolio growing.
How do I find the right serviced accommodation mortgage lender?
It can be tricky on your own – every lender has its own criteria, with some favouring city apartments and others holiday lets or small developments.
That is where a specialist serviced accommodation broker earns its keep. We compare the options, explain it all in plain terms, and match you with a lender that fits what you are setting out to do.
Great Investments Start with Great Choices
Not being able to get a project started is difficult enough. Having to see it stalled halfway through for the want of more funding is worse. Serviced accommodation, Airbnb properties and holiday lets can provide strong returns on your money only when the investments you have made are adequate and sensibly priced.
Avoid being drawn into high-maintenance mortgages and expensive personal loans to get your serviced accommodation project up and running. Let Commercial Finance Network find you a loan offer that makes sense. As a whole-of-market broker, we work with investors and homeowners across the UK and internationally.
Commercial Finance Network is a whole-of-market FCA authorised broker working with property investors, developers, and businesses across the UK and internationally. We work across the full specialist serviced accommodation lender panel and will tell you which lenders will engage with your deal, what LTV and rate to expect, and how to structure the application before anything is submitted.
Call us on +44 1494 622 111 or email info@cfnuk.com to speak to a specialist directly. Commercial Finance Network is authorised and regulated by the Financial Conduct Authority.
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