Working Hours: Mon - Fri: 9:00AM - 6:00PM
Call Us: 0330 304 3040
Home Mortgage Calculators About Blog
   Back | How it Works
How it Works
Securing an excellent mortgage offer with Revolution Finance Brokers couldn't be easier
1Get in Touch
Complete a quick form to give us an overview of your mortgage or financing requirements, and we'll provide recommendations about the best opportunities for you.
2Submit Your Application
Once you've chosen your preferred mortgage deal, we'll steer you through the paperwork with comprehensive application management from start to finish.
3Mortgage Completion
Revolution Finance Brokers will finalise the details and enable you to move forward without delay!
   Back | About
About
Blog
Contact Us
FAQs
Documents
Areas
Credit Report
   Back | Insurance
Insurance
Business Protection Insurance
Life Insurance
Building Insurance
Home Insurance
Mortgage Repayment Protection
Family Income Benefit
Critical Illness Cover
Income Protection
Life Assurance
   Back | Calculators
Calculators
Stamp Duty
Commercial Stamp Duty
How Much Can I Borrow?
Buy To Let
Bridging Loan
Residential & Commercial Bridging
Mortgage Repayment
Development Finance
Commercial Mortgage
   Back | Choose your mortgage type
Choose your mortgage type
Bad Credit Mortgages
Bridging Finance
Commercial Mortgages
Buy to let
Self Employed Mortgages
Mortgages for Professionals
Lifetime Mortgages
Expat Mortgages
Interest Only Mortgages
Mortgage Affordability
Mortgage Application
Income Types
Residential Mortgages
Development Finance
Property Types
Remortgages
First Time Buyers
Mortgage Rejection
Offset Mortgages
Second Charge Mortgages

Mortgages for Pub Businesses

Interested in investing in a pub business but stumped about how to start the financing application process? Here we run through how it works step-by-step and what to expect from your mortgage lender.

Do You Own a Pub? Here Are Some Of The Best Mortgage Options For You

Each business sector is different, and with many clients seeking financing to invest in a pub or bar business, we have created this brief guide to highlight the essential information when mortgaging a commercial pub property.

For bespoke support and advice about how to secure the borrowing you need, contact the mortgage brokers team on 0330 304 3040 or drop us an email at [email protected].

Understanding How Pub Mortgages Work

Commercial mortgages are a viable option to provide funding to buy a pub. 

There are multiple mortgage options, and the right solution depends on whether the pub is freehold or leasehold, and what sort of lending you require.

Commercial Mortgage Calculator

Property or loan details



Error: Property must be valued at £50,000 or more.

Error: Estimated rental income must be between £1 and £99,999.

Based on your details, you can borrow up to: £0

This calculator is an estimation of how much you could borrow. If you’re ready to take out a mortgage, speak to a Revolution brokers to see what options are available.

How do Lenders Calculate Eligibility for Pub Mortgages?

Investing in a pub isn't the same as mortgaging a residential property, since it is a business rather than primarily a home.

Mortgage lenders will want to know about your skills, experience and business plan to demonstrate that the investment is viable.

Typical factors a commercial lender will look at include:

  • The LTV ratio - i.e. how much you want to borrow against the value of the property.
  • Your credit history and rating.
  • Whether you have previous experience in the pub industry.
  • Business profits and performance to demonstrate affordability.
  • Where the business is based.

Do I Need a Minimum Number of Years Experience to Mortgage a Pub?

While not essential when working with an expert broker, a mainstream lender prefers to see applications with at least two or three years of experience.

Our specialist lenders will also consider start-ups and new businesses.

In some cases, you might not have owned a pub before, but have other relevant experience such as in other areas of hospitality, or in managing a business or workforce.

How Much Deposit Do I Need to Buy a Pub Through a Mortgage?

Commercial mortgages tend to start at around a 30% deposit, with some lenders requiring as much as 45%.

This all depends on how risky the application is, and you can influence the deposit requirements by considering:

  • Whether you can offer additional security as well as a deposit.
  • If you need an owner-occupier mortgage, with a deposit requirement of 30-40%.
  • If you need a commercial investment mortgage, with deposits around 30%.

Is There a Maximum Mortgage Size for a Pub Business?

Commercial mortgages don't have a fixed maximum, per se, but a lender will look at the business trade and profits to calculate the maximum they feel comfortable lending.

In some cases, you might be able to include other income to add to the trading profits to increase the value you can borrow.

Lenders may also consider projected trade and earnings.

Is it Best to Use a Specialist Lender or a High Street Bank for a Pub Mortgage?

In many cases, commercial mortgages are more competitive with lenders who have experience in the sector and understand the market and trading conditions.

For professional advice about the lenders best suited to your borrowing requirements, give us a call on 0330 304 3040.

Can I Mortgage a Pub if I Have Adverse Credit Issues?

Mainstream lenders often reject commercial mortgage applications where there are negative credit issues to consider.

However, niche lenders can be more flexible and will consider how severe the credit issues were, and when they occurred.

Remember that shareholders and directors are also liable to be credit-checked, and any bad credit ratings of an owner may impact the lenders you can apply to for your pub mortgage.

Is it Possible to Apply for a Pub Mortgage After Retirement?

You can - if you meet the other eligibility criteria, then niche lenders will be happy to lend to you, regardless of your age.

Does the Size of Pub Mortgage Impact the Eligibility Rules?

Not really, since commercial mortgages are bespoke and the size of the mortgage will depend on the property, business, and circumstances.

Is it Worth Using a Pub Mortgage Calculator?

Mortgage calculators are useful as an indication, but cannot help with understanding the exact rates you are likely to be offered, as this all depends on a wide range of eligibility criteria.

The only way to get an accurate idea of the interest rates, maximum borrowing, and monthly repayment values is to speak to a professional commercial mortgage broker, such as the Revolution Finance team.

Are There Alternatives to Commercial Mortgage Finance for a Pub?

There are multiple commercial financing options, depending on how much you need to borrow and for what purpose:

  • Releasing equity - if you have other properties, you can remortgage to release capital for a pub investment.
  • Bridging loans - a short-term alternative financing option if you need pub finance quickly, or are pending other sales before applying for a mortgage.
  • Development finance - ideal for new-build business projects, or redevelopments. If you want to renovate an old pub business, you can usually borrow up to 75% of the initial cost, and 100% of the build costs. The finances are released in stages as the build progresses.

Expert Advice with UK Pub Mortgages

Whether you want to invest in a pub business, renovate an existing property, or remortgage your commercial financing, the Revolution Brokers team can help.

As an independent UK whole-of-market broker, our consultants offer professional advice on the right financing products, and the best mortgage options to support your business goals.

Give us a call on 0330 304 3040 or get in touch via email at [email protected].

Further Reading

PROCESS

Explore Our Presence

Securing an excellent mortgage offer with Revolution Finance
Brokers couldn't be easier:

cityam
dailyexpress
dailymail
standard
FT Advisor
LBC
The Guardian
Independent
Metro
Mortgage Introducer
Sky News
The Sunday Times
Yahoo
This is Money
Mirror
LBC
The Sunday Times
PROCESS

Revolution Mortgage Brokers:
100% Independent & Whole-of-Market

As specialist mortgage brokers for a huge variety of applicants, the whole-of-market consultants at Revolution provide access to an exceptional range of lenders, products and mortgage deals. That means you get the advantage of professional negotiation and broker-exclusives through an established lending network to ensure we always find you the most competitive mortgage available.

REFERRALS

Refer, Relax, and get £50

Ask the Expert
Mortgage Brokers

Revolution Brokers
What can we help you with today?
Do you have a particular timescale in mind?
Next
Which situation from the below list best matches your requirements? *
Could you tell us the market value of the property?*
Please let us know a rough idea of your yearly income (before tax) for all applicants? *
Back
Next
Primary applicant name *
Contact email address *
Best contact number *
Back
Next