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.