---
title: "Serviced Apartment Mortgages"
description: "Serviced apartment mortgages: the typical lender checks, affordability on booking income versus AST rent, the London 90-day rule, head lease checks and lenders that permit Airbnb."
url: "https://mortgagelane.com/insights/serviced-apartment-mortgage"
site: "Mortgage Lane"
collection: "posts"
date: "2026-03-30"
author: "Seren Norton"
category: "Insights"
reviewed: "2026-10-01"
reading_time: "9 min"
byline: "Seren Norton"
author_credentials: "CeMAP · FCA authorised firm"
language: "en-GB"
robots: "index,follow"
---

# Serviced Apartment Mortgages

Serviced apartment mortgages: the typical lender checks, affordability on booking income versus AST rent, the London 90-day rule, head lease checks and lenders that permit Airbnb.

Mortgage Lane arranges serviced apartment mortgages across the UK, using specialist lenders that permit Airbnb bookings.

[Serviced accommodation mortgage](https://mortgagelane.com/definitions?term=serviced-accommodation-mortgage)

Specialist lending

Finance for property offered for short stays with services such as cleaning, rather than occupied under a conventional residential letting.

[Read the full definition of Serviced accommodation mortgage](https://mortgagelane.com/definitions?term=serviced-accommodation-mortgage)

## Serviced Apartment Mortgage Specialists

Speak to a Mortgage Lane adviser about your options.

## In short

A serviced apartment mortgage can be assessed on booking averages, on projections or on trading accounts, depending on whether the property is already operating and which lender is used. Each lender sets its own maximum loan-to-value, subject to its criteria and the income basis it uses.

**A serviced apartment mortgage finances a property operating as short-stay accommodation instead of a standard residential rental.** Because the income comes from bookings and not from long-term tenancies, lenders assess occupancy levels, the trading model, the management arrangements and whether [affordability](https://mortgagelane.com/definitions#def-affordability) can be supported by booking data or projected trading income.

The main question on a serviced apartment case is which income figure the lender uses. On the same property, a lender assessing it on [Assured Shorthold Tenancy (AST)](https://mortgagelane.com/definitions#def-assured-shorthold-tenancy) rental value, the rent from a long-term let, will lend less than one assessing it on serviced accommodation income. (In England, assured shorthold tenancies became assured periodic tenancies on 1 May 2026.)

Mortgage Lane arranges mortgages for serviced apartments, covering individual units and larger schemes, for investors and operators. Lender selection is based on the property type, experience, [loan-to-value](https://mortgagelane.com/definitions#def-loan-to-value) and the income model used to assess affordability.

## What to check before buying a serviced apartment

**The head lease is the first thing to check, because a lease restriction can prevent the property being used as a serviced apartment at all.**

The head lease, sometimes called the master lease, may limit how the property can be used or let, and some lease clauses affect the resale value or the finance options available on the apartment. Confirm the lease does not restrict the property from being used as a serviced apartment before proceeding with a purchase.

Restrictions can also sit on the title or apply to the area rather than the individual property. Both affect lender choice in the same way a lease restriction does.

Planning rules can cap letting nights too. In Greater London, the number of nights a home can be let short term is limited to 90 in a calendar year without planning permission: the 90-day rule, covered below.

## How much can I borrow on a serviced apartment mortgage?

**Serviced apartment mortgage borrowing depends on two things: the lender's maximum loan-to-value and the income figure it uses to test affordability.** Each lender sets its own maximum, subject to its criteria and the income basis used.

Affordability can be based on booking averages, on projections or on trading accounts, depending on whether the property is already operating and which lender is used.

Where a lender is comfortable with AST-based lending on a serviced accommodation property, rates can be lower and the case less specialist. That route usually suits only a property that also works as a strong-yielding AST investment, because the loan is then capped by the lower long-term rental figure.

## Serviced apartment mortgages for first-time buyers and first-time landlords

**Homeownership is not always required for a serviced accommodation mortgage.** Some lenders will consider first-time buyers, first-time landlords and applicants who do not already own a residential property, provided the overall case is strong and the property fits their criteria.

Experience is not always essential either. Lender appetite is stronger where the borrower can show a clear strategy, suitable income and a property that works both as serviced accommodation and as a fallback investment.

The more specialist the case, the smaller the choice of lenders, but a lack of property ownership or landlord experience does not by itself prevent borrowing.

## The 90-day rule and its impact

**The 90-day rule stops residential property in Greater London being let as short-stay accommodation for more than 90 nights in a calendar year without planning permission.** It is set by section 25A of the Greater London Council (General Powers) Act 1973, added by [section 44 of the Deregulation Act 2015](https://www.legislation.gov.uk/ukpga/2015/20/section/44), which also requires the person providing the accommodation to be liable to pay council tax on the premises.

Exceeding the limit without permission can lead to enforcement action by the council, so the letting strategy needs planning around the regulation from the outset.

In practice, an investor in London must either limit short-term letting to 90 nights a year or obtain planning permission to exceed it. That affects overall profitability, because the income earned within the permitted nights has to cover the mortgage payments and the running costs for the full year.

The rule is not national. The statute applies only in Greater London, and Manchester, for example, does not currently enforce a similar 90-day limit, which gives investors there more flexibility on letting duration. Other planning and licensing rules can apply anywhere, and local regulations change, so confirm the position in a specific area before purchase.

## High-value areas: London and Manchester

**In high-value markets such as London and Manchester, the gap between serviced accommodation income and AST rental income can be wide, and that is where affordability problems arise.**

Some [commercial buy-to-let mortgage](https://mortgagelane.com/definitions#def-commercial-buy-to-let) lenders take the higher serviced accommodation income into account, while some buy-to-let lenders still base their affordability calculation on market AST rental income. On a high-value property the AST rent may not cover the mortgage payment at all, which produces a decline or a much smaller loan on a property that trades profitably.

On these cases, working with a lender that recognises the higher income potential of a serviced apartment can decide whether the case works at all.

## Mortgages for Airbnb operators

**Lenders that permit Airbnb letting sit in the specialist buy-to-let, commercial and serviced accommodation market, where short-term letting is accepted as an investment strategy.** These lenders may accept Airbnb income as part of a serviced accommodation mortgage, particularly where the property has strong projected or evidenced booking performance.

Some high street lenders do not permit Airbnb or other short-term letting platforms under standard buy-to-let terms, because the use falls outside a normal long-term tenancy. Borrowers who plan to operate through Airbnb generally need a lender that specifically allows serviced accommodation or short-term lets, instead of a standard [buy-to-let mortgage](https://mortgagelane.com/definitions#def-buy-to-let-mortgage).

## Related mortgage insights and guides

- [2026](https://mortgagelane.com/guides/buy-to-let-mortgage-guide)Guide[Buy to Let Mortgage Guide](https://mortgagelane.com/guides/buy-to-let-mortgage-guide)The complete buy to let guide: ICR stress testing with worked examples, limited company vs personal ownership, portfolio rules, valuations, tax mechanics, and every specialist scenario linked.[Read more about Buy to Let Mortgage Guide](https://mortgagelane.com/guides/buy-to-let-mortgage-guide)
- [2026](https://mortgagelane.com/insights/serviced-accommodation-mortgage)Insight[Serviced Accommodation Mortgage](https://mortgagelane.com/insights/serviced-accommodation-mortgage)Serviced accommodation mortgages explained: how lenders set the loan to value, the two affordability methods they use, London's 90-day rule and the criteria for first-time short-let operators.[Read more about Serviced Accommodation Mortgage](https://mortgagelane.com/insights/serviced-accommodation-mortgage)
- [2026](https://mortgagelane.com/guides/expat-mortgage-guide)Guide[Expat Mortgage Guide](https://mortgagelane.com/guides/expat-mortgage-guide)The complete UK expat mortgage guide: how much you can borrow, why the cheapest rate shrinks your loan, country-of-residence rules, expat tax, and every specialist asset class linked.[Read more about Expat Mortgage Guide](https://mortgagelane.com/guides/expat-mortgage-guide)

## Common questions

**Q: What is a serviced apartment mortgage?**

faq-id: what-is-a-serviced-apartment-mortgage

A serviced apartment mortgage finances a property intended to be let as a serviced apartment or short-term rental, with affordability assessed on booking income instead of long-term tenancy rent.

**Q: How much can I borrow on a serviced apartment mortgage?**

faq-id: how-much-can-i-borrow-on-a-serviced-apartment-mortgage

It depends on the lender. Each lender sets the maximum loan-to-value on a serviced apartment mortgage, subject to its criteria and the income basis it uses to assess affordability, and that income basis can keep the loan below the maximum.

**Q: What deposit is required for a serviced apartment mortgage?**

faq-id: what-deposit-is-required-for-a-serviced-apartment-mortgage

Deposits on a serviced apartment mortgage generally follow the lender's maximum loan-to-value (LTV): the deposit covers the rest of the property value, varying by lender and by the borrower's financial profile. An adviser checks the current figure for the property and the income basis.

**Q: How does a serviced apartment mortgage differ from a buy-to-let mortgage?**

faq-id: how-does-a-serviced-apartment-mortgage-differ-from-a-buy-to-let-mortgage

A serviced apartment mortgage assesses affordability on the income from short-term letting. A standard buy-to-let mortgage assesses it on the rent from a long-term let, the Assured Shorthold Tenancy (AST) rental value, which is usually lower.

**Q: Who can apply for a serviced apartment mortgage?**

faq-id: who-can-apply-for-a-serviced-apartment-mortgage

Both experienced and first-time property investors can apply, provided they meet the lender's eligibility criteria on credit score, income verification and deposit; some lenders also ask for a viable business plan or cash reserves. Some lenders will consider applicants who do not already own a residential property.

**Q: Do I need property management experience?**

faq-id: do-i-need-property-management-experience

Not always. Lender appetite is stronger where the borrower can evidence a clear strategy, suitable income and a property that works both as serviced accommodation and as a fallback investment.

**Q: What does the application process involve?**

faq-id: what-does-the-application-process-involve

Compared with a traditional mortgage, a serviced apartment mortgage application can need additional documentation, such as a business plan and rental income projections, because affordability is assessed on potential short-term rental income.

**Q: What is the 90-day rule?**

faq-id: what-is-the-90-day-rule

The 90-day rule is a statutory limit in Greater London. Residential premises there can be let as temporary sleeping accommodation for up to 90 nights in a calendar year without planning permission, provided the person letting them is liable to pay council tax on the premises; more nights than that need planning permission (Greater London Council (General Powers) Act 1973, section 25A, added by the Deregulation Act 2015). The limit applies however the nights are booked, including through short-term rental platforms.

**Q: Does the 90-day rule apply outside London?**

faq-id: does-the-90-day-rule-apply-outside-london

No. The 90-day rule is set by legislation that applies only in Greater London, so it is enforced only there. Manchester, for example, does not currently enforce a similar limit. Other planning and licensing rules can apply outside London, and local regulations change, so the position in a specific area needs confirming before purchase.

**Q: How do local regulations affect a serviced apartment mortgage?**

faq-id: how-do-local-regulations-affect-a-serviced-apartment-mortgage

Local letting restrictions, such as London's 90-day rule, reduce potential rental income and so affect affordability. Lenders take these regulations into account when assessing the case and may require compliance as a condition of the mortgage.

**Q: Do I need to check the head lease before buying a serviced apartment?**

faq-id: do-i-need-to-check-the-head-lease-before-buying-a-serviced-apartment

Yes. The head lease may restrict how the property can be used or let, and some lease clauses affect resale value and finance options. Confirm the lease permits serviced apartment use before proceeding.

**Q: Can I let a serviced apartment on Airbnb?**

faq-id: can-i-let-a-serviced-apartment-on-airbnb

Some lenders in the specialist buy-to-let, commercial and serviced accommodation market permit Airbnb letting, and some will assess affordability on Airbnb booking income. Some high street lenders do not permit short-term letting platforms under standard buy-to-let terms, so check that the lender allows it before letting through Airbnb.

## Talk it through with an adviser

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Published: 2026-03-30

Last reviewed: 2026-10-01

Source: https://mortgagelane.com/insights/serviced-apartment-mortgage