Mortgage guide
Read about the lender requirements and application process for pub mortgages Northern Ireland.
Securing a commercial mortgage in Ireland for a pub or restaurant involves navigating a unique set of financial and regulatory considerations. Whether you’re looking to purchase a new property or refinancing an existing one, understanding the process of getting a mortgage on a pub is crucial for successful investment in the hospitality sector.
The hospitality industry, including pubs and restaurants, faces specific challenges that can affect mortgage approval. These include fluctuating revenues, sensitivity to economic conditions, and the necessity of maintaining a strong customer base and reputation. Lenders will assess these factors closely when considering a mortgage application for a pub or restaurant.
In Ireland, commercial mortgages for pubs and restaurants typically offer LTV ratios up to 75%, depending on the lender’s assessment of the business’s viability and the borrower’s financial history. A higher LTV might be possible with additional security or a strong business performance record.
Applicants for a commercial mortgage on a pub or restaurant will need to provide comprehensive documentation. This includes business accounts, proof of income, business plans, and details of any existing debts and assets. For new entrants to the hospitality industry, presenting a robust business plan with market analysis and projected financials is particularly important.
The property will undergo a detailed valuation to determine its market value and the profitability of the business it hosts. This valuation is crucial in determining how much lenders are willing to finance and under what terms.
Interest rates for commercial mortgages in Ireland can vary significantly based on the perceived risk associated with the business and the economic environment. Repayment terms can also vary, often ranging from 10 to 30 years, depending on the lender and the specifics of the business case.
Using a pub mortgage broker can be particularly beneficial when navigating the complex landscape of commercial mortgages for pubs and restaurants in Ireland. Brokers can provide access to a wider range of lending products and assist in presenting your application in the best light to potential lenders.
Getting a commercial mortgage for a pub or restaurant in Ireland requires careful preparation and understanding of the specific financial requirements and challenges of the hospitality industry. With the right approach and assistance, securing a mortgage can be a feasible step towards owning or expanding your pub or restaurant business. Whether you’re a seasoned owner or new to the industry, understanding these key aspects can help you better navigate the process and achieve your business goals.
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.
For context, these are the wider product terms covered by this guide. Availability and eligibility depend on your circumstances and the lender.
| Criteria | Detail |
|---|---|
| Maximum loan to value (LTV) | 75% |
| Repayment options | Capital repayment and interest only |
| Term | 15 to 40 years |
| Rate options | Variable, base rate tracker, and 2, 3 or 5 year fixed mortgage options |
| Valuation methods | Going concern or investment (market value 1, MV1), MV2, MV3 or bricks and mortar |
| Experience | Not always required |
| Locations | Available in England, Scotland, Wales and Northern Ireland |
| Pubs with trading accounts (owner occupiers) | Lower interest rates available |
| Pubs without trading accounts (owner occupiers) | Higher interest rates, and personal income may be needed |
| Projections | Accepted in some cases with bank statements |
For context, these are the wider product terms covered by this guide. Availability and eligibility depend on your circumstances and the lender.
| Feature | Detail |
|---|---|
| Loan to value | 70% |
| Product fee | 0.75% |
| 3 years fixed | 5.89% |
| 5 years fixed | 5.79% |
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.
A bridging loan in Northern Ireland is a short-term secured loan, typically lasting between 1 and 24 months, used to finance property purchases, refurbishments, or refinancing when conventional mortgage timescales are too slow. The loan is secured against property and repaid once the agreed exit strategy, such as a sale or remortgage, completes.
To compare mortgages in Northern Ireland, set each product's rate, fees and any cashback against the loan over the fixed period, then check that the lender lends on that property type, title and location and accepts your income as you earn it. Price comparison sites list products and rates, while each lender's criteria decide whether an application succeeds, for example on a leasehold apartment, a Co-Ownership share, a rural home or income paid in euro. Checking the lenders that accept the case first avoids applying to one that would decline it.
You do not have to use a mortgage broker in Northern Ireland, and many lenders take applications directly. A broker compares lenders with and without branches there, checks their criteria on the property, the title, Co-Ownership and the income before an application, and manages the application through to completion. Co-Ownership says many of its customers use a mortgage adviser, and that mortgage advisers are regulated by the Financial Conduct Authority (Co-Ownership: getting a mortgage). Mortgage Lane is authorised and regulated by the FCA.
Yes. Many UK lenders lend on homes in Northern Ireland alongside the banks and building societies based there, though some UK lenders do not lend there or restrict the property types they accept. The products, the FCA's rules for residential mortgages and the affordability checks are the same as in Great Britain. A comparison therefore covers both the UK-wide lenders that accept the property and the local ones, and checks each lender's rules on the property, the title and the income before an application goes in.
For a home you will live in, the smallest deposit is usually 5% of the price or the valuation, whichever is lower: 95% is the highest loan to value on a standard purchase on the cases we arrange, and the Mortgage Guarantee Scheme supports loans above 90% through participating lenders. A family assisted mortgage can go to 100% on the cases we arrange. In our experience applicants with adverse credit are usually limited to around 90%, and buy to let goes up to 85%, so a landlord needs at least 15%. Co-Ownership can reduce the cash needed, because the deposit is on the share only: it says lenders typically ask for 5% to 10% of the share's value, and some ask for none.
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