Mortgage guide
Pub Mortgages
Pub commercial mortgages are typically available at 65% to 75% loan-to-value, depending on trading performance, asset quality, and operator experience. For trading pubs, lenders commonly assess affordability using EBITDA-based lending, which can significantly increase borrowing capacity compared to asset-only assessments.
Pub Mortgages
We assist borrowers with specialist commercial mortgages for pubs, supporting the purchase, refinance, refurbishment, or expansion of public houses. Pub mortgages are secured against the property itself and are available to both owner-operators and investors. Because pubs are trading, reputationally sensitive assets, lenders apply more cautious underwriting, which is reflected in pricing and structure.
We help identify the most appropriate pub mortgage solution based on whether the business is trading, the ownership structure, and the long-term strategy for the asset. Well-established, profitable pubs generally attract stronger lender appetite and more competitive terms than newly acquired or non-trading premises.
Lending Criteria and Affordability
Pub commercial mortgages are typically available at 65% to 75% loan-to-value, depending on trading performance, asset quality, and operator experience. For trading pubs, lenders commonly assess affordability using EBITDA-based lending, which can significantly increase borrowing capacity compared to asset-only assessments.
Where a pub is not currently trading, pub finance may still be available, but underwriting is more conservative and focused on the underlying property, location, refurbishment requirements, and the borrower’s experience.
Both capital repayment and interest-only structures may be available, subject to income strength, lender appetite, and exit strategy.
Valuation and Risk Considerations
Pub lending typically relies on a commercial valuation, often assessed on a going-concern (MV1) basis for trading pubs, with cross-checks against vacant possession value to manage downside risk. Lenders also consider operating hours, local demand, freehold versus leasehold structure, and reputational exposure when setting terms.
How We Help
Because pub mortgaglending criteria vary widely, lender selection is critical. We work with high-street, challenger, and specialist commercial lenders, including those willing to consider cases with limited experience, smaller loan sizes, or non-trading pubs.
As a whole-of-market commercial mortgage broker, we manage criteria challenges, valuation approach, and underwriting presentation, helping borrowers secure pub finance that is both realistic and aligned with their commercial objectives.
Commercial mortgage calculator
Choose owner occupier for a business buying or refinancing premises it trades from, assessed on adjusted net profit before tax from the latest accounts, or investment for property let to tenants, assessed on lease income.
Commercial mortgage criteria
For context, these are the wider product terms covered by this guide. Availability and eligibility depend on your circumstances and the lender.
| Criteria | Detail |
|---|---|
| Max Loan to Value (LTV) | 80% LTV Care Home Mortgages, 100% LTV Medical Commercial Mortgages, 75% Commercial Investment |
| Max Term | Up to 40 years |
| Completions | From 4 weeks |
| Repayment options | Capital repayment and Interest only |
| Commercial mortgage rates | From 6.19% |
| Rate options | Variable, Base Rate Tracker, 2, 3 or 5 year fixed mortgage options |
| Valuation methods | Going concern/Investment (Market value 1, MV1), MV2, MV3 or bricks and mortar |
| Flexible Leases | Rolling leases, weak covenants and short time remaining accepted |
| Adverse credit | Accepted on some products on a case by case basis |
| Locations | Available in England, Scotland, Wales and Northern Ireland |
| Experience | Not required on certain products |
For context, these are the wider product terms covered by this guide. Availability and eligibility depend on your circumstances and the lender.
| Feature | Detail |
|---|---|
| Max Loan to Value (LTV) | 65% |
| Product fee | 5% (4.74% for existing customers) |
| Fixed rate (5 years) | 6.34% |
Related case studies
2026Read more about Hotel Refinance, Market Value
2025Read more about Semi-Commercial Bridging Loan
2024
Read more about Holiday Let Title SplitHoliday Let Title Split
Discover how we helped split the title of a holiday let to maximise investment returns. Read the full mortgage case study and our tailored approach.
2026Read more about 12-Unit MUFB, West Midlands
Frequently asked questions
Can you get a mortgage on a pub?
Yes, you can get a mortgage on a pub in the UK through a commercial mortgage. Trading pubs can be assessed on profitability using EBITDA, allowing loan-to-value ratios of up to 70%-75%, while non-trading pubs are usually assessed on bricks-and-mortar value with lower, more conservative lending limits.
Are pub mortgages regulated?
Usually not. A pub mortgage is unregulated business lending unless you borrow personally and at least 40% of the property is used as a home by you or a close family member, in which case it is a regulated mortgage. Unregulated lending does not carry the consumer protections of the FCA's mortgage rules, so check who you are dealing with before you commit.
What is a freehold pub mortgage?
A freehold pub mortgage is a UK commercial mortgage used to buy a pub where the buyer owns both the building and the land. Lending is assessed on the property and, if the pub is trading, on the business's performance. In our experience loan-to-value typically goes up to 70% to 75%.
What type of commercial mortgage suits a pub?
One matched to the right valuation basis. For a trading pub that is usually a going-concern loan from a lender experienced in hospitality, in our experience at up to 70% to 75% loan-to-value. A pub without full trading accounts is usually lent against at around 65% of a 90-day valuation.
What deposit will I need for a pub mortgage?
In our experience a trading pub typically needs a deposit of 25% to 30% of the purchase price, reflecting maximum loan-to-values of 70% to 75%. First-time operators and non-trading pubs sit nearer 35%, reflecting 65% LTV caps.
Talk it through with an adviser
Speak to a Mortgage Lane adviser about your circumstances and the next steps.
Let’s talk property finance
Contact us
Tell us about your plans and a Mortgage Lane adviser will get in touch.
- Call our team
- +44 333 231 8206
- Email us
- enquiries@mortgagelane.com
- +44 7487 829005
- Opening hours
- Monday to Saturday, 8.30am–5.30pm
Closed Sunday
Your enquiry goes to our team, who will get in touch to discuss your next steps.
