UK Pub Mortgages

Experience and advice to clients in structuring commercial property deals such as commercial mortgages for Pub Purchase, Refinance and Refurbishments.

Our commercial property mortgage consultants all have backgrounds in the banking sector and can offer added experience and advice to clients in respect of structuring commercial property deals such as commercial mortgages for Pub purchase, refinance and purchase.

Acceptable security

Almost all commercial property is acceptable, this includes:

  • Public Houses
  • Public Houses with restaurant
  • Public Houses with rooms to let
  • Public Houses with accommodation above

Hotel Commercial Mortgage Application

We have access to a wide range of Pub Commercial Mortgage lenders, with some offering Adverse Credit Commercial Mortgages enabling us to match the client’s UK Hotel Commercial Mortgage requirements to the most appropriate lender. At Sterling Capital Reserve, we are able to source a wide range of innovative and competitive commercial property finance packages for hotels, pubs and restaurants.

The financial information that we will need to support a mortgage application is as follows:

  • Last 3 years Audited Accounts
  • Latest Management Figures
  • Profit & Loss Forecast for next 12 months
  • Last 6 months business bank statements
  • Brief CV/profiles of partners/directors
  • Asset/liability statements of applicants

Case Study 1 - Pub Purchase in Oxfordshire


Ian Duckett and Des Healey have always wanted to own their own pub. This has been achieved through the help of, when they purchased the Lamb at Little Milton in March 2011.

Ian and Des already run a successful leasehold pub in nearby Chalgrove, coincidently also called the Lamb, which they have built up over 7 years. They provide good food and quality real ales and pride themselves on their high level of customer service.

Funding through a High Street Lender of 70% Loan to Value was secured to complete the purchase as well as bridging assistance for the VAT element.

Ian said
“We had set ourselves a goal of buying a Freehold following 7 years of operating a tenancy with Greene King. We learnt that the Lamb in Little Milton was coming to the market following many years of ownership by Punch. It is a 16th Century coaching inn which we had known and loved for many years and decided that we should take the step to go for it. Having had an impeccable record with our existing business bank accounts we were confident that the bank would support us with the venture. However both that bank and the bank with whom we had banked privately for over 20 years were not prepared to assist with the funding of a pub purchase. We were stunned as we had a cash deposit of 30% and additional security to offer plus we had demonstrated that the new business was a viable proposition. At that point we searched the internet to explore alternative funding options and fortunately found Andrew Hunt of Sterling Capital Reserve. Andrew’s help and guidance was fantastic and he helped us to formulate a business plan that supported our application for funds in a comprehensive manner that was tailored to the expectations and demands of a market that was reluctant to support businesses in the pub/ restaurant sector.
It was a tricky process but Andrew was there supporting us throughout the whole process and without his help we honestly believe that we would not have achieved our dream. In addition to a commercial mortgage of 60% Andrew also secured a bridging loan to cover the VAT on the purchase price and an overdraft facility of £5K. I cannot recommend Andrew’s support highly enough, he has been a fantastic asset and we will always be grateful for that.”

See Ian and Des’s website at and for more information about what the two pubs have to offer

Case Study 2 – Purchase of the Freehold as Sitting Tenant - £900,000

Area - Midlands Pub and Restaurant in picturesque area

Client was a tenant of a large brewery and was given the opportunity to purchase the freehold at a substantial discount. Existing lenders would not assist at levels required despite serviceability being confirmed.

Pub Commercial Mortgage Solution:

  • 60% of Market Value and 90% of Purchase Price
  • Repayment term of 25 years.
  • Enabled Client to negotiate reduction in beer prices
  • At Base Rate plus margin of 4.75%

Case Study 3 - Hotel Refinance & Refurbishment - £750,000

Area - Commercial Hotel in busy coastal town, Kent:

Our client wanted to convert some of the Hotel's outbuildings into Conference Rooms and finish off a general refurbishment programme. The existing bank loan facility had only 8 years to run.

Hotel Commercial Mortgage Solution:

  • Mortgage of £750,000
  • Repayment term of 20 years
  • Repayments on the new mortgage were actually less than the existing facility, due to 'stretching' the repayment term.
  • At bank base rate plus margin 1.5%

Case Study 4 - Hotel and Restaurant - £250,000

Area - Hotel & Restaurant in a busy Market Town, North Wales

The client was seeking funds to extend the Restaurant where demand was very strong. Existing bankers were not being overly helpful; there had been a recent change in Manager and the new incumbent seemed cautious.

Hotel and Restaurant Commercial Mortgage Solution:

  • £250,000 to repay existing borrowings and cover the extension costs.
  • A 15-year repayment facility was agreed at bank base rate plus margin 2%.

All cases are supported by professionally prepared credit applications, thereby significantly enhancing the chances of our clients securing the optimum financial package. Unlike some of our competitors, we do not believe in up front charges. Our fees are only payable when our client has received a formal offer of finance.