Can you get a commercial mortgage on a pub, bar or restaurant?
Yes. Specialist commercial lenders fund pubs, bars and restaurants across the UK, but they assess these deals differently from an ordinary shop or office because a hospitality venue is a trading business as much as a piece of property. The value depends heavily on how well it trades, so lenders look at both the bricks and the profit.
This makes hospitality one of the more specialist corners of the commercial market, and getting matched to the right lender is critical. A commercial mortgage on a well-run, profitable venue is achievable, but the wrong lender will decline it outright.
How much deposit do you need for hospitality property?
Deposits are higher than for mainstream commercial property because the income is tied to a trading business:
- Established, profitable venues: typically 30% to 35% deposit.
- Newer businesses or first-time operators: often 40% or more.
- Distressed or closed premises: may need bridging first, then a mortgage once trading is proven.
Strong, evidenced trading accounts are the single biggest lever on both the deposit and the rate.
How do lenders value a pub or restaurant?
Hospitality assets are usually valued on a going-concern or trade-related basis, not just on the bricks and mortar. The valuer assesses the fair maintainable trade — the profit a reasonably efficient operator could achieve — and derives a value from that. This means:
- Two identical buildings can have very different values based on turnover and profit.
- Goodwill, reputation and location all feed into the figure.
- A dip in trade can reduce the value and therefore the loan available.
Freehold versus leasehold hospitality
Many pubs and restaurants trade from leasehold premises. Lenders will fund leasehold hospitality businesses, but they look closely at the length of the lease, the rent, any tie to a brewery or landlord, and the terms. A short lease reduces the security and can limit the loan. Freehold venues are generally easier to finance because the borrower owns the underlying asset.
What documents do hospitality lenders want?
To fund a pub, bar or restaurant, expect to provide:
- Two to three years of trading accounts, or a robust business plan for a new venture.
- Recent management figures showing current performance.
- Details of the lease if leasehold, or the title if freehold.
- Your experience in hospitality — operators with a track record are viewed more favourably.
- Licensing information.
How do you fund a hospitality purchase efficiently?
Because hospitality is specialist, matching to the right lender matters more than usual. Assesr takes your figures and builds a lender-ready credit paper in around 60 seconds, then matches it to specialist commercial lenders that actively fund pubs, bars and restaurants. You pay a 0.5% Assesr Fee on drawdown — a quarter of the typical broker fee — with nothing until completion.
If a venue is closed or needs refurbishing before it can prove trade, a short-term facility such as a commercial mortgage may not fit immediately, and a bridge to reopen and stabilise trading can be the sensible first step.
Frequently asked questions
Can I get a mortgage on a pub or restaurant?
Yes. Specialist commercial lenders fund pubs, bars and restaurants, assessing both the property value and the trading performance of the business. Deposits are usually higher than for standard commercial premises because the income depends on a going concern.
How much deposit do I need for a pub or restaurant?
Typically 30% to 40% of the price, sometimes more for a business with a limited trading history. Established, profitable venues with strong, evidenced accounts may secure better terms and a lower deposit.
Do lenders assess the business or just the building?
Both. Because a pub or restaurant is a going concern, lenders look at trading accounts, profit, any goodwill and the property itself, usually via a going-concern or trade-related valuation. That is why strong accounts and hospitality experience make such a difference to the outcome.