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.

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:


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.

Mortgages for Pub Businesses

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

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.

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

Why Revolution Brokers?
  • Whole of market brokers

  • Mortgage that suits you

  • On time customer support

Latest Blogs

11 Mar 2022
Guide to Remortgaging to Finance a Home Renovation

Remortgaging your home is a great way to release equity and raise finance for those home improvement jobs you've always wanted to do. Before applying, it's vital to work out how much equity you have in your property and ensure sufficient capacity to borrow the funds required for the renovation you have in mind. In today's article, t..

10 Feb 2022
Do I Qualify for First-Time Buyer Status?

Do I Qualify for First-Time Buyer Status? Working out whether or not you are a first time buyer may seem obvious - but there are plenty of scenarios where your position isn't clear! Examples might include: New buyers who have inherited a property they rent out. Buy-to-let investors that have never purchased a residential hom..

26 Jan 2022
How Does a Remortgage Application Work?

Most homeowners know that remortgaging means switching a mortgage from an existing lender over to a new deal. However, the process isn't always obvious. If you're on a fixed-rate deal, you'll want to get ahead of the end of the term to avoid being shuffled onto a higher standard variable rate where your interest costs will undoubtedly ..

17 Dec 2021
Understanding Lender Risk on First-Time Buyer Mortgages

Finding a great mortgage as a first time buyer can feel like an uphill struggle, with a larger proportion of applicants being turned down than a year ago. Around 20% of first-time mortgage applicants are rejected, usually because of the lender risk associated with their loan. Today, Revolution Brokers explains the highest risk facto..

28 Oct 2021
Pros and Cons of First Time Buyer Buy to Let Mortgages

Investing in a rental property can be an excellent way to get onto the property ladder and earn an income. However, if you haven't owned a residence before, you might find that a mainstream bank will automatically turn you down for a buy to let mortgage. In today's guide, the Revolution Brokers team explains how you can become a ren..

12 Oct 2021
Mortgage Deposit Requirements for First-Time Buyers

Buying a home for the first time is a massive step - but the deposit is often a stumbling block for first-time buyers. It can take years to save a sufficient amount or be impossible, so there are several ways to approach the problem and get your foot onto the property ladder. From April 2021, the UK government launched the new mortg..


Refer, Relax and get £50

If you refer a friend for a mortgage or any
type of finance you’ll both receive £25
each when their new application
successfully completes.

Know More!

We are proud
members of the:

FCA disclaimer

The content included in our articles, blogs, web pages and news publications is based on information accurate at the time of writing. Note that policies and criteria can change regularly throughout the UK mortgage lending market, and it remains essential to contact the consultation team to receive up to date guidance. The information included on the Revolution Brokers site is not bespoke to any circumstances or individual application scenarios and therefore is not intended to be used as financial advice. The content we share is designed to be informative and helpful but cannot be relied upon to provide individual advice relevant to your mortgage requirements. All Revolution team members are fully qualified, trained and experienced to provide mortgage advice of an independent nature. We collaborate with lenders and providers who are regulated, authorised and registered with the Financial Conduct Authority (FCA). Should you require specific mortgage borrowing types, some products such as buy to let mortgages may not be FCA regulated. The Revolution team can provide further information about regulated and unregulated lending as required. Please remember that a mortgage is a debt which is secured against your home or property. Your home can be at risk of repossession if you do not keep up with the repayments or encounter any other difficulties in managing your mortgage borrowing responsibly. This also applies to any remortgage or home loan secured against your property, including equity release products.

Ask the Mortgage Experts

Revolution Brokers understands that mortgages can be complex and confusing!

Ask us any question you might have, and one of our skilled consultants will come back to you as quickly as possible.