Mortgage guide
Restaurant Mortgages
Commercial mortgages for restaurants are typically available at up to 75% loan-to-value (LTV), allowing operators to retain working capital while investing in their premises.
- Published
- 4 Aug 2026
- Last reviewed
- 4 Aug 2026
- Reading time
- 3 min
Restaurant Mortgages
We assist borrowers with specialist commercial mortgages for restaurants, supporting the purchase, refinance, or refurbishment of food and hospitality premises. Restaurant mortgages are tailored to the operational nature of the sector, providing funding that reflects trading performance rather than relying solely on property value.
Commercial mortgages for restaurants are typically available at up to 75% loan-to-value (LTV), allowing operators to retain working capital while investing in their premises.
Affordability and EBITDA-Based Lending
Restaurant lending is primarily assessed on the operating performance of the business, with lenders focusing on EBITDA as a measure of sustainable cash flow. Rather than applying simple income multiples, lenders use a Debt Service Coverage Ratio (DSCR), usually requiring EBITDA to cover annual mortgage repayments by 1.25× to 2.0× once interest rates are stress-tested.
This approach allows lenders to assess the true earnings potential of the restaurant, stripping out variable costs and accounting adjustments, and ensures the business can service debt through different trading cycles.
Key Underwriting Considerations
When arranging a restaurant mortgage, lenders will closely review:
- Business plans, including concept, positioning, and competitive landscape
- Historic accounts and financial projections, demonstrating cost control and margin sustainability
- Operator experience, particularly in similar restaurant formats
- Location and demographics, as footfall, local demand, and competition materially affect risk
Strong trading history, experienced management, and a well-defined concept significantly improve lender appetite and terms.
How We Help
Restaurant lending criteria varies widely between lenders, particularly around cuisine type, trading hours, alcohol sales, and operator experience. As a whole-of-market commercial mortgage broker, we assist by:
- Identifying lenders with genuine appetite for restaurant businesses
- Structuring cases around EBITDA and DSCR requirements
- Managing valuation approach and underwriting presentation
- Securing competitive terms aligned with long-term sustainability
A restaurant commercial mortgage can be a powerful tool to support growth, upgrade facilities, or secure long-term premises, provided the finance is structured around realistic cash flow and lender expectations.
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
Frequently asked questions
Can I get a mortgage on a flat above a pub or restaurant?
A mortgage on a flat above a pub or restaurant is available from fewer lenders than a flat above a quiet shop, because of late opening, noise, cooking smells, extraction and fire risk. Specialist lenders consider it where the flat is self-contained, has its own entrance and has adequate fire separation from the business below, and the valuer's view of saleability carries weight. Some lenders decline these flats outright. In England a restaurant falls within Class E, so a shop can become one without planning permission, while a pub is outside every use class and a change to one generally needs permission (legislation.gov.uk: Use Classes Order, article 3).
Can you get a 90% commercial mortgage?
Yes, 90% loan-to-value commercial mortgages are possible, but only in limited sectors such as healthcare properties, pharmacies, or certain convenience stores with strong trading history. For most other commercial properties, maximum lending is typically capped at around 70% to 75% LTV.
What documents do I need to apply for a mortgage with Mortgage Lane?
You will usually need proof of identity, proof of income, bank statements and details of the property you are buying or investing in. The exact requirements depend on the mortgage product and your circumstances.
How long does it take to obtain a mortgage offer?
It depends on the lender, and each mortgage case is different. Digital mortgages can produce an offer quickly where the lender's automated checks are satisfied, while traditional lenders usually take longer. Cases that need more underwriting can take longer.
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.