Lendus.

Commercial Mortgages for Pubs & Licensed Premises

Buying or refinancing a pub involves both property and business finance considerations. We work with specialist licensed trade lenders who understand the sector — from freehouses to managed houses.

200+ UK lenders
2-minute application
No credit check to apply
FCA-regulated brokers

Rates

5.5% – 9.0%

per annum

Term

5-20 years

Max LTV

Up to 65%

Amount

£100k – £5m

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Mortgage types available

Owner-Occupied

Rate
5.5% - 8.0%
Term
5-20 years
Max LTV
Up to 65%

Best for: Publicans buying their own freehouse — lenders underwrite on combined property and business trading performance

Investment

Rate
6.0% - 9.0%
Term
5-20 years
Max LTV
Up to 60%

Best for: Property investors acquiring pub buildings to let to an operator — requires a demonstrable tenant and strong lease terms

Refinance

Rate
5.5% - 8.5%
Term
5-20 years
Max LTV
Up to 60%

Best for: Existing pub owners restructuring debt, releasing equity, or moving from a tied loan arrangement to independent finance

Key considerations

Eligibility requirements

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Market context

The UK pub sector comprises approximately 47,000 licensed premises, according to the British Beer & Pub Association. While total pub numbers have declined from a peak of over 60,000 in the 1980s, the sector has shown resilience among community locals, gastropubs, and those with accommodation and food revenue streams. The rise of craft beer and premium spirits has helped some operators grow sales per head significantly. Freehold pub values vary enormously — from under £200,000 for a rural community local to over £5m for a prominent city-centre venue. Specialist pub finance is dominated by a handful of dedicated lenders with significant sector knowledge.

Frequently asked questions

What is the difference between a freehouse mortgage and a tied pub loan?
A freehouse is a pub not tied to a pubco or brewery, giving the operator freedom to choose their own suppliers. A commercial mortgage for a freehouse is arranged on the open market. Tied pubs operate under agreements with a pubco or brewery that typically require purchasing drinks from that supplier — many pubcos provide their own tied loans, but operators can sometimes refinance onto an independent commercial mortgage if the tie arrangement permits it.
Do I need a Premises Licence before applying for a pub mortgage?
Yes. The Premises Licence is fundamental to the value and operation of the property. Lenders require sight of the licence and will not lend against a pub that does not have a valid licence in place. If a licence is at risk of review or has conditions that restrict trading, lenders will factor this into their risk assessment.
Can I get a commercial mortgage on a pub with accommodation rooms?
Yes, and accommodation income is generally viewed favourably by lenders as it diversifies revenue beyond wet and food sales. Lenders underwriting pub mortgages will consider combined hospitality revenue. If the accommodation element is significant, lenders may treat the property more like a small hotel or inn and apply hospitality sector underwriting criteria.
What financials will a lender need to assess a pub mortgage application?
Lenders typically require 3 years of audited or certified accounts, plus recent management accounts (within 3 months). They will want to see a detailed breakdown of turnover by category (wet, dry, accommodation), payroll costs, rent (if applicable), and adjusted net profit. A business plan is usually required for new operators or when applying for a pub with a history of poor trading.
Are pub mortgages affected if the premises licence changes hands?
Yes — a change in the Designated Premises Supervisor (DPS) must be notified to the relevant licensing authority, and lenders need to be informed of any change that could affect the licence status. Some lenders include licence protection clauses in their mortgage terms. If the licence is suspended or revoked, it would constitute a material breach of the mortgage conditions.

Related property types

Restaurant Premises Hotel Mixed-Use

Guides and resources

What Is a Commercial Mortgage? Commercial Mortgage Rates Commercial Mortgage vs Bridging Best Commercial Mortgage Lenders

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