Buying a pub or restaurant is a significant investment in the hospitality industry. Whether you are acquiring a freehold pub, a leasehold bar, or refinancing an existing hospitality business, our specialist mortgage brokers access commercial lenders who understand the unique dynamics of pub and restaurant finance.
From 5.75%
Interest rate
Up to 70%
Loan-to-value
5-25 years
Mortgage term
£100,000
Minimum loan
Yes — a pub mortgage is a type of commercial mortgage specifically designed for purchasing or refinancing a pub, bar, or restaurant premises. Whether you want to buy a pub outright, purchase a public house as an investment, or refinance an existing pub mortgage, our specialist broker team can help you get a pub mortgage on competitive terms across the UK.
A pub mortgage is a type of commercial mortgage, but lenders assess hospitality business applications differently from standard commercial property. Key factors include trading history, cash flow, the type of business (wet-led, food-led, or accommodation), and whether the property is freehold or leasehold. Pub finance requires a lender who understands the hospitality sector and the unique challenges of running a pub. Our commercial mortgage broker accesses specialist commercial lenders who actively lend to the hospitality industry.
The UK pub market has evolved significantly, with operators now running diverse hospitality businesses that combine food, drink, entertainment, and accommodation. Understanding which type of pub you are buying — and how lenders categorise it — is crucial to securing the right mortgage. A wet-led pub with minimal food will be assessed differently from a gastropub or a pub hotel. Our broker team understands these distinctions and matches each application to lenders with the right appetite for the specific type of hospitality business you are purchasing or refinancing.
Mortgage rates for pubs and restaurants typically range from 5.75% to 10.00%, depending on the lender, LTV, and the strength of the pub business. Interest rates tend to be slightly higher than for standard commercial property because the hospitality sector carries perceived operational risk. A higher interest rate reflects the lender's assessment of the business, not just the property value.
Both fixed and variable rate options are available. Fixed rates offer repayment certainty for 2-5 years, while variable rates track the Bank of England base rate. Mortgage lenders will typically offer up to 65-70% LTV on established trading pub premises, with a freehold pub mortgage generally attracting better terms than leasehold arrangements.
For a commercial mortgage for a pub, lenders assess trading accounts (at least 2-3 years of previous trading data), projected cash flow, and the future prospects of the business. A strong business case with realistic revenue projections will help secure mortgage approval. Use our mortgage calculator to estimate your repayments on your mortgage.
Beyond the headline interest rate, the total cost of a pub mortgage includes arrangement fees, specialist hospitality valuation costs (which are higher than standard commercial valuations due to the trading element), legal fees, and broker fees. For freehold pub purchases, stamp duty land tax is calculated on the total purchase price at commercial rates. For leasehold purchases, the premium paid for the lease and business is the basis for SDLT calculation. Our team provides a full cost breakdown before you commit, ensuring there are no surprises during the purchase process.
The cost of a specialist hospitality valuation typically ranges from £2,500 to £5,000, reflecting the additional analysis required to value a trading business as opposed to a simple commercial property. The valuer will consider the pub wet and dry sales, food revenue, accommodation income (if applicable), gaming machine income, and event revenue when assessing the business value. A well-prepared set of trading accounts that clearly breaks down revenue streams will support a higher valuation and therefore better lending terms.
To buy a pub or purchase a pub, you will need a comprehensive business plan demonstrating your experience and strategy. Mortgage options include standard commercial mortgages for pubs, business mortgage products, and specialist pub finance packages. The application typically takes 8-14 weeks from enquiry to completion.
You can apply for a mortgage through our specialist broker team, who will present your application in the best light to suitable lenders. Documents required include trading accounts, a business plan, bank statements, personal ID, and details of the pub property including any existing lease. The lender commissions a specialist finance valuation that considers both property value and business trading potential.
If you are new to the industry, lenders will scrutinise your experience more closely. Relevant experience in running a pub or another hospitality business strengthens your application significantly. Our expert guidance helps first-time operators demonstrate their capability. Whether it is a traditional pub, a new pub concept, or a pub or restaurant combination, we find the right mortgage for a pub purchase.
The quality of your business plan is paramount for a pub mortgage application. Lenders want to see realistic revenue projections based on comparable trading data, a clear staffing plan, marketing strategy, and evidence that you understand the competitive landscape in the area. For applicants with experience in running a pub or another hospitality business, this is your opportunity to demonstrate your operational capability. Our team helps you prepare a professional business plan that addresses lender concerns and highlights your strengths as an operator.
The type of commercial mortgage available depends heavily on whether the pub is freehold or leasehold. A freehold pub mortgage gives you ownership of both the business and property, which lenders prefer as it provides stronger security. Leasehold pub purchases require the lease to have sufficient unexpired term (usually 25+ years remaining).
Finance options beyond a standard mortgage to buy a pub include commercial loans for working capital, equipment finance, and bridging loans for time-sensitive purchases. Securing finance for a pub often requires a form of security beyond the property itself — personal guarantees or other assets may serve as additional collateral.
For operators wanting to buy or refinance a pub, or those managing multiple properties in the hospitality industry, portfolio lending arrangements can streamline the process. A standard commercial mortgage may work for straightforward acquisitions, while more complex deals benefit from specialist structuring. The commercial lending team at CMB can advise on the best type of loan for your pub purchase.
The choice between freehold and leasehold affects not just the mortgage product but also the long-term financial prospects of your pub investment. Freehold ownership provides security, capital growth potential, and the flexibility to develop or change the use of the property. Leasehold arrangements typically involve lower upfront costs but come with ongoing rent obligations and the risk of lease expiry or rent reviews. Some pub leases include tie-in agreements requiring the purchase of drinks from a specific brewery or supplier, which can affect profitability and therefore mortgage affordability. Our team advises on the financial implications of both freehold and leasehold pub structures.
For operators running multiple pub sites, portfolio lending arrangements can simplify borrowing and often provide better overall terms. Cross-collateralisation across properties, combined annual reviews, and volume-based pricing are available from specialist hospitality lenders. Our team structures portfolio finance packages that scale efficiently as your pub business grows.
If you already own a pub or another business in the hospitality sector, refinance options can help you secure better rates, release equity, or restructure your existing loan. Mortgages for pubs can be refinanced onto more competitive terms as your trading history grows and the business matures.
Refinancing a public house mortgage involves a new valuation and updated trading assessment. Our broker team handles the entire process, accessing specialist commercial lenders who understand pub valuations. Whether you want to reduce monthly payments, switch rate types, or raise capital for improvements, our commercial lending expertise ensures you get the best deal.
All mortgage advice is provided by advisors who are authorised and regulated by the Financial Conduct Authority (regulated by the Financial Conduct Authority). Your property may be repossessed if you do not keep up repayments on your mortgage. Contact us for expert guidance on refinancing.
The refinancing market for pubs has grown considerably as lenders recognise the resilience and adaptability of the UK pub sector. Pubs that have successfully diversified into food service, events, accommodation, or craft drinks often find that their improved trading performance unlocks significantly better refinancing terms. Our broker team regularly helps pub operators refinance to lower rates, release equity for improvements, or consolidate multiple business loans into a single facility. The key to a successful pub refinance is presenting strong, verifiable trading data that demonstrates the business is well-managed and profitable.
Our pub finance expertise covers every aspect of hospitality lending, from initial purchase finance through to portfolio expansion and strategic refinancing.
Finding the right commercial pub mortgage requires a specialist broker who understands the hospitality industry. Not every lender has appetite for pub finance, and a pub mortgage without the right broker support can be difficult to arrange. Our mortgage broker team compares mortgage lenders across our panel of 100+ specialist commercial lenders to find the mortgage you need.
We provide a comprehensive guide to commercial pub finance, covering every aspect from initial enquiry through to drawdown. Matt Lenzie's experience in corporate finance at Lloyds Bank and Bank of Scotland means we understand commercial lending, business finance, and what lenders look for in a hospitality business application. We also help with finance a pub refurbishment, commercial hotel mortgages, and wider hospitality sector lending.
To get a mortgage on a pub or restaurant, or to explore your mortgage options, speak to our team. We offer free initial consultations and no-obligation mortgage quotes for pubs across the UK. A residential mortgage will not work for a trading business — you need specialist commercial finance structured for the hospitality sector.
Our specialist pub mortgage broker service covers every aspect of hospitality finance — from initial business plan review through to completion and beyond. We maintain relationships with the UK leading pub and hospitality lenders, including specialist providers who focus exclusively on the licensed trade. This deep market knowledge means we can often identify lending opportunities that generalist brokers or high-street banks would miss. Whether you are an experienced publican or entering the industry for the first time, our team provides the expert guidance and market access you need to secure the best possible pub mortgage terms.
“Every pubs restaurants application is different. I work directly with borrowers to understand their objectives, structure the deal correctly, and present it to the right lenders. That hands-on approach consistently delivers better outcomes than going direct to a single bank.”
Matt Lenzie
Founder & Principal Broker, Commercial Mortgages Broker
Yes. Specialist commercial mortgage lenders offer pub mortgages for freehold and leasehold premises. You will need a strong business plan, trading history (or relevant hospitality experience for first-time buyers), and a deposit of at least 30%.
Most lenders require a deposit of 30-40% for pub purchases. Established operators with strong trading history may access up to 70% LTV. First-time operators typically need a larger deposit.
Pub mortgage rates range from 5.75% to 10.00% depending on the property, trading performance, LTV, and borrower experience. Freehold pubs with strong trading history attract the best rates.
Yes, though options are more limited. Lenders prefer operators with hospitality experience. Relevant experience (e.g. as a pub manager), a strong business plan, and a larger deposit will improve your chances.
This is a residential mortgage question. For the pub itself, you need a commercial mortgage. Proximity to a pub generally does not affect residential mortgage eligibility, though individual lender criteria may vary.
A freehold pub mortgage covers ownership of both the property and business, while a leasehold mortgage funds the purchase of the lease and business. Freehold generally attracts better rates and higher LTVs, as lenders prefer the additional security of property ownership.