Quick answer

Yes — you can often refinance a pub mortgage or consolidate multiple facilities (overdrafts, short-term loans, merchant cash advances, asset finance) into a single facility. Eligibility and the best route depend on security (freehold vs leasehold), trading performance, value of fixtures and fittings, outstanding balances and any contractual penalties. A tailored quote from specialists will show whether consolidation produces net savings after fees and break costs. Start Your Free Enquiry

Why pubs refinance or consolidate finance

Pub operators refinance or combine facilities for practical, financial and strategic reasons. Common goals include:

• Lower interest costs — move from a high-cost short-term facility to a longer-term commercial mortgage or term loan.
• Reduce monthly repayments — spread debt over a longer term to improve cashflow.
• Simplify administration — one monthly repayment is easier to manage than several lenders.
• Fund refurbishment or expansion — use refinance proceeds to upgrade kitchens, bars or refit rooms.
• Release equity — freehold pubs can sometimes release capital for other business needs.
• Replace expensive merchant cash advances or invoice finance — consolidate into a cheaper, fixed-rate facility.

Example: a two-site operator consolidated an overdraft, a bridging loan and a merchant cash advance into a single term loan and reduced monthly interest costs by over 25% while stabilising cashflow.

Common refinancing and consolidation options for pubs

Refinance commercial mortgages (freehold & leasehold)

How it works: move your existing mortgage to a new lender offering a better rate or more suitable term. Suits pubs with solid trading history and sufficient property value.

Pros: potential lower rate, fixed or cheaper variable pricing, longer term. Cons: valuation, legal fees, possible early repayment charges (ERCs). Typical timeframe: 4–12 weeks (valuation + legal work).

Consolidate overdrafts, short-term loans and merchant cash advances

How it works: lenders or brokers package multiple short-term or high-cost debts into a single term loan. Suits operators struggling with multiple repayments or high-cost facilities.

Pros: simplified payments, typically lower effective interest. Cons: may lengthen repayment term and increase total interest; some lenders won’t refinance certain MCA products without security.

Asset finance or equipment loans

How it works: finance new kitchen equipment, cellar kit or furniture against the asset itself. Useful when part of refinancing proceeds are earmarked for refit.

Pros: preserves cash, asset-backed pricing. Cons: limited to value of equipment, separate repayment schedules if not consolidated.

Refinance to fund refurbishment (refurb + refinance combo)

How it works: arrange additional lending as part of a refinance to finance upgrades. Many lenders will consider projected uplift in turnover from improvements.

Pros: increases revenue potential, single transaction. Cons: lender may require cost plans, contractor quotes and proof of projected returns.

Specialist hospitality lenders and brewery-backed finance

How it works: lenders experienced in pubs understand seasonal trading, wet/dry split and tenancy/beer tie considerations. Brewery-backed or specialist lenders may offer tailored terms.

Pros: sector expertise, quicker underwriting for hospitality models. Cons: may come with sector-specific covenants or restrictions.

What lenders and brokers will look at (and how it affects your options)

Key factors that determine eligibility, pricing and structure:

• Trading performance — recent turnover, gross margin and EBITDA trends are critical.
• Accounts & management accounts — lenders typically want the last 2–3 years’ accounts and current management accounts.
• Security — freehold pubs have more options; leasehold pubs may need landlord consent.
• Lease details — length of lease, rent reviews, break clauses and any mortgage covenant restrictions.
• Outstanding debt profile — types of existing facilities, total debt and repayment profiles.
• Credit history — director and company credit records influence rates and acceptance.
• Valuation of property and fixtures — lenders value both bricks and F&F when considering offers.

Practical tip: bring the last 2 years’ statutory accounts, recent management accounts, current loan statements and lease or title documents to speed up the process.

Costs and risks to be aware of

• Early repayment charges (ERCs) — check break costs on existing mortgages or loans; sometimes savings don’t offset ERCs.
• Valuation and legal fees — expect survey and solicitor costs on refinance transactions.
• Arrangement fees — lenders may charge facility arrangement or broker fees.
• Landlord consent — leasehold pubs often require landlord approval, which can add time and conditions.
• Extended total cost — consolidating to a longer term can lower monthly payments but increase lifetime interest.
• Security trade-offs — consolidating unsecured with secured borrowing may place more assets at risk.

Check this first: early repayment penalties and lease clauses — these commonly make or break the case for refinancing a leasehold pub.

How the refinance or consolidation process works (step-by-step)

1. Initial enquiry & free eligibility check — submit basic details so we can match you to suitable lenders/brokers. Get Quote Now.
2. Lender/broker shortlisting — matched partners review the summary and request further info if suitable.
3. Indicative offers — receive headline terms and an assessment of savings vs costs (including any ERCs).
4. Due diligence & valuation — lender instructs valuation and detailed underwriting; provide accounts, lease/title and bank statements.
5. Legal completion — solicitors exchange documents and complete; funds are paid out, existing facilities are repaid.
6. Post-completion — update account structures, note new repayment schedule and ensure covenants are understood.

Typical response time: initial matches and indicative responses are often within hours to a couple of days; full refinance typically completes in weeks to a few months depending on complexity.

How UK Business Loans can help your pub refinance or consolidate

We’re a specialist introducer that connects pub owners with lenders and brokers who understand hospitality finance. Our short enquiry form takes under two minutes and helps us match you to the most relevant providers for loans from around £10,000 and upwards. There’s no obligation — just faster access to quotes and to lenders who know your sector. Free Eligibility Check

Important: UK Business Loans does not lend or provide regulated financial advice. We act as an introducer and will share your enquiry with lenders and brokers to obtain quotes.

Real examples (anonymised)

Freehouse, North Yorkshire — Consolidated an overdraft and a short-term bridging loan into one 7-year term loan. Outcome: monthly repayments fell by 30% and the operator funded a small refurbishment within the same package (completed in 8 weeks).

Leasehold gastropub, South West — Replaced an expensive merchant cash advance and part of a bank loan with a specialist hospitality mortgage plus equipment finance for a new kitchen. Outcome: overall cost reduced and funding provided to improve quality and turnover (completed in 10 weeks, subject to landlord consent).

Frequently asked questions

Can I refinance if I have an existing mortgage?

Often — but check early repayment charges and the net benefit. A broker can calculate break costs and compare them to expected savings.

Can I combine an overdraft, short-term loans and a merchant cash advance?

Yes — consolidation is common. Lenders will look at total debt, security and trading performance before offering a single facility.

Will refinancing hurt my credit score?

A soft eligibility check typically won’t affect credit. Formal applications may trigger credit searches — your broker will advise on the type of checks involved.

How long does refinancing take?

From a few weeks to around three months depending on valuations, legal work, landlord consents and lender due diligence.

Do I need landlord consent for a leasehold pub?

Usually — many leases require landlord consent for new security or refinancing. Check your lease early to avoid delays.

Can I refinance with imperfect credit?

Some specialist lenders consider imperfect credit, especially where there is strong security or good recent trading performance. A matched broker will advise the best route.

Ready to get a free eligibility check for your pub?

If your pub is juggling multiple loans, paying high rates or you need funds for refurbishment, complete a short enquiry and we’ll match you with lenders and brokers who specialise in pubs. No obligation — typical responses within hours. Get Quote Now — Free Eligibility Check

Important: UK Business Loans does not lend or provide regulated financial advice. We act as an introducer and will share your enquiry with lenders and brokers to help you get quotes.

Learn more about our sector services at pubs business loans.