Quick answer: Care homes, hotels, pubs and similar businesses are usually financed as trading businesses, so lenders look closely at the accounts, the trading history and the experience of the operator as well as the building. Fewer lenders cover these sectors, so choosing the right lender matters. Most straightforward cases complete in six to twelve weeks.
Last reviewed: 29 October 2026. Written by Jaff Sadi, founder and Managing Director of Sadi's Commercial Finance, an NACFB and FIBA member firm based in Chingford, East London.
How do lenders view trading-business property?
A care home, hotel or pub is worth what it earns as well as what the building is worth. Lenders assess the business behind the property, and they want to see that the operator can keep it trading. Specialist assets such as care homes, leisure and hospitality are fundable, but they need lenders who understand the sector.
What lenders tend to focus on
| Business type | What lenders tend to focus on |
|---|---|
| Care home | Trading accounts, occupancy, the operator's experience and the regulatory registrations needed to operate, such as CQC registration for a care home in England |
| Hotel | Trading accounts, occupancy, seasonality and the condition of the building |
| Pub | Trading accounts, the premises licence, the location and how the business is run |
What to prepare
- Two to three years of filed accounts, plus up to date management figures
- Six to twelve months of business bank statements
- Details of the operator's experience in the sector
- Details of the property and any licences or registrations the business needs
- Evidence of the deposit and its source
- Details of the ownership structure, such as a limited company or SPV
Owner-occupied or investment?
If you will run the business yourself, the lender assesses your trading and your experience. If you are buying the property to let to an operator, the lender assesses the rent, the tenant and the lease. Personal guarantees are common on limited company and SPV borrowing. That is normal rather than a red flag, but you should understand what you are signing.
What affects the cost
We cannot quote a single rate, because lenders price each case individually. Pricing depends on the property, the trading performance of the business, the loan to value, the strength of the income and the credit file of the borrower and any guarantors. Costs to plan for beyond interest include a lender arrangement fee, a valuation fee and legal fees on both sides. We normally charge a broker fee (our own fee for arranging your finance), but we are not charging it until January 2027 as part of a promotional offer.
How long does it take?
A straightforward case commonly completes in six to twelve weeks from application. Valuation and legal work are the usual bottlenecks. Specialist sectors can take longer where licences, registrations or a complex structure need checking.
How to get finance for a care home, hotel or pub
- Speak to a specialist. Tell us about the property, your plans and your timescale.
- Share the numbers. Provide the information the lender will need, such as accounts or tenancy details, the deposit or equity available and the structure you intend to use.
- Get matched with a lender. We approach suitable lenders from our panel and secure an Agreement in Principle.
- Valuation and legal work. The lender instructs a valuation while solicitors work in parallel.
- Offer and completion. Funds are released on completion.
Why use a broker
Lenders differ widely on property type, structure and credit. Approaching the wrong lender costs you weeks and can leave a footprint on your credit file. Jaff Sadi spent more than 25 years inside UK high street and commercial banking before founding the firm, so we know how a case needs to be built and presented to get through credit. We compare lenders across a panel of more than 300 UK lenders.
Ready to talk? Speak to a specialist, see our commercial mortgages page, or read How to Get a Commercial Mortgage in the UK.
Frequently asked questions
Can I get a commercial mortgage to buy a care home?
Yes. Care homes are fundable but need lenders who understand the sector. Lenders look closely at the accounts, occupancy, the operator's experience and the regulatory registrations needed to operate.
Can I get a commercial mortgage on a hotel or a pub?
Yes. Hotels and pubs are financed as trading businesses, so lenders look at the trading accounts and the operator as well as the property. Fewer lenders cover these sectors, so lender choice matters.
Do I need trading accounts?
For an owner-occupier purchase of a trading business, normally yes, and most lenders prefer two to three years. Newer operators can still be considered, with more weight placed on experience, the property and the deposit.
Can I buy through a limited company or SPV?
Yes. Lenders are comfortable with limited company and SPV borrowing. A personal guarantee from the directors is usually required.
What rates can I expect?
Rates are set lender by lender and case by case, so we cannot quote one. They depend on the property, the trading performance, the loan to value and the credit file of the borrower.
How long does it take?
A straightforward case commonly takes between six and twelve weeks from application. Specialist sectors can take longer.
Your property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Figures and timescales on this page are indicative and are confirmed only in a lender's formal offer.