Quick answer

Short answer: Yes — subject to valuation, planning/licensing and the right lender. Mixed‑use pubs with letting rooms can be funded via commercial mortgages, bridging, development/refurbishment finance or asset finance depending on your objective. For a no‑obligation match to specialist lenders and brokers, start a Free Eligibility Check.

Why lending for mixed‑use pubs differs

Mixed‑use pubs combine two different asset types: a commercial trading element (bar, restaurant, catering, communal areas) and a residential element (letting rooms, owner’s flat, staff accommodation). That split makes valuation and underwriting more complex.

Lenders vary in appetite: some specialise in hospitality and value the business cashflow, others focus on the property value only. High‑street mortgage criteria for residential property do not map neatly to pubs, and buy‑to‑let products may not suit a trading pub. The result is that specialist commercial lenders, bridging lenders and pub‑savvy brokers often provide the best outcomes for these properties.

Types of finance commonly used

Commercial mortgages

Used for purchase or long‑term refinance of freehold pubs or long‑lease properties. Lenders may base decisions on the mix of property value and business performance. Suitable for buyers who have a clear operating plan and can provide accounts and a valuation split for the commercial and residential elements.

Bridging loans

Short‑term finance to secure a purchase (e.g., auction buy), bridge the gap while planning consent or lease extensions are obtained, or to fund urgent refurbishment. Faster but more expensive; common when speed or flexibility is essential.

Development / refurbishment finance

Staged funding for conversion, upgrading letting rooms or adding new accommodation. Lenders will usually want evidence of planning permission (if required), cost schedules and professional valuations.

Asset & equipment finance

Separately finance kitchen equipment, furnishings or plant to preserve capital and reduce pressure on property security. Useful where you want to keep borrowing against the building separate from equipment replacement.

Refinance & consolidation

Used to restructure existing, high‑cost debt, release equity for improvements, or consolidate multiple facilities into a single, more manageable repayment profile.

Not sure which option fits? Get Quote Now — Free Eligibility Check to be matched to specialist lenders and brokers.

What lenders look for

• Valuation split: Surveyors will separate commercial and residential elements. The value apportioned to each affects loan size and LTV.
• Security: Freehold properties are preferred. Leasehold terms (length, rent reviews, covenants) can restrict lending.
• Income & trading performance: 12–24 months accounts, management accounts, and evidence of accommodation income (occupancy rates, average room rate) where relevant.
• Licences & consents: Premises licence, planning consents for change of use or conversion, fire safety compliance and any other statutory certificates for letting rooms.
• Borrower profile: Experience in hospitality is beneficial; lenders will review company/director credit history and available personal guarantees.
• Loan purpose & exit plan: Purchase, refinance, refurbishment or development — clear plans and realistic cashflow forecasts help secure better terms.
• Local factors: Location, seasonal trading risk, competition and recent comparable pub sales affect risk assessment.

Whether the lender underwrites on the business cashflow or property value alone varies — specialist pub lenders often consider both.

Typical terms, rates and LTVs

Figures vary by lender, borrower and property. As a guide:

• Commercial mortgage LTVs: typically 60–75% depending on valuation split, condition and borrower strength.
• Bridging loans: short‑term lending up to 70–75% LTV (fast completion but higher interest and fees).
• Refurbishment/development finance: staged draws tied to milestones or professional valuations.
• Rates: commercial rates are usually higher than mainstream residential mortgages. Exact pricing depends on term, security, loan size and risk.
• Costs: expect arrangement fees, valuation fees, solicitors’ fees and (possible) broker fees.

These are indicative ranges only — speak to specialised brokers to get tailored illustrations. Free Eligibility Check.

Common obstacles and how to overcome them

Many applicants face similar hurdles when seeking finance for mixed‑use pubs. Typical issues and practical solutions:

• Mixed‑use valuation shortfall: If combined valuation reduces LTV, consider phased funding (bridging then refinance), separate asset finance for equipment, or provide additional security.
• Leasehold with short unexpired term: Extend lease before applying or find lenders willing to accept shorter terms (often at higher cost).
• Licensing or planning objections: Obtain pre‑application planning advice and clear licence conditions before applying; lenders may withhold offers until consents are in place.
• Poor trading history or COVID impacts: Provide recent management accounts, a recovery plan, and sensitivity forecasts to reassure underwriters.
• Fire safety & HMO concerns: Bring statutory compliance up to standard; remedial works funded via staged development loans can be acceptable.

How UK Business Loans helps

We don’t lend. We connect pub owners and buyers to specialist lenders and brokers who understand mixed‑use hospitality properties. Complete our short enquiry and we’ll match your request to the most suitable partners — typically for loans from around £10,000 and upwards.

What to expect:

1. Complete a quick enquiry (2 minutes).
2. We match you to lenders/brokers with pub experience.
3. Partners contact you with tailored options and next steps.

Start a Free Eligibility Check now and have the right specialists review your case.

For more industry‑specific guidance see our sector page on pubs business loans.

Case examples — quick scenarios

Buy a freehold pub with rooms

Challenge: Buyer needs to secure an auction purchase quickly but plans long‑term commercial mortgage. Solution: Short‑term bridging loan to complete, then refinance to a commercial mortgage once valuation and tenancy details are confirmed. Lender type: bridging lender + commercial mortgage specialist.

Refinance and refurb to create additional letting rooms

Challenge: Owner wants to add three rooms to increase income but current debt is expensive. Solution: Refinance existing debt with a longer‑term mortgage that releases equity, plus staged refurbishment drawdown under development finance. Lender type: specialist pub lender or commercial property developer lender.

Practical checklist for applicants

Gather these documents and details before you start:

• Title deeds (freehold) or lease (with length and covenants).
• Last 2–3 years of business accounts and recent management accounts.
• Details of accommodation income (occupancy %, ADR) and trading turnover.
• Premises licence, planning consents and fire safety certificates.
• Estimate of works (if refurbishing) and contractor quotes.
• Borrower/company ID and director information.

Ready to proceed? Get Started — Free Eligibility Check.

Frequently asked questions

Can banks lend on a pub with rooms above?

Yes, some high‑street banks and many specialist commercial lenders will consider mixed‑use pubs. Requirements differ — some underwrite on property value; others want to see the business accounts and accommodation income.

Do I need planning permission to convert space into letting rooms?

Sometimes. Minor internal changes that do not alter use may not need planning, but conversions that change the property’s use or create separate units often require permission. Lenders typically want clarity on consent before confirming funding.

Will applying through UK Business Loans affect my credit score?

No — submitting an enquiry through our service does not affect your credit score. Lenders or brokers may perform credit checks later if you progress to a formal application.

How long does it take to get a decision?

Timescales vary: bridging decisions can be within days, commercial mortgage offers often take a few weeks depending on surveys and legal work. Our matched partners typically respond rapidly after your enquiry.

What loan sizes are typically available?

Through our panel you can access facilities from around £10,000 up to multi‑million pound commercial loans depending on the lender and the security available.

Ready to explore finance for your mixed‑use pub?

Start a free, no‑obligation enquiry and we’ll match your requirements to lenders and brokers who specialise in pubs and mixed‑use hospitality properties. It takes just a couple of minutes to begin: Free Eligibility Check — Get Quote Now.