Oban is a resort town and seaport on the Firth of Lorn in the west of Scotland, within the Argyll and Bute council area. Small as it is, it is the largest town between Helensburgh and Fort William. Its population of 8,000 (2022) rises to over 24,000 during the tourist season. The bay forms a near-perfect horseshoe, sheltered by the island of Kerrera and, beyond it, the Isle of Mull.
We are a broker. We arrange business mortgages for limited companies in Oban that want to own the building they trade from, and we never lend ourselves. It is commercial finance secured on business premises, not a residential mortgage, and we put the case to lenders whose criteria suit seasonal and hospitality trade.
Which premises do companies in Oban, Scotland buy?
With visitors swelling the population every summer, hospitality drives much of the local owner-occupier market: hotels, guest accommodation, restaurants, cafés, bars and gift shops. Behind them sit the businesses that supply the town and the islands, such as food and drink wholesalers, marine engineers, chandlers, builders and hauliers. Professional practices and shops serve the resident population all year.
Hotels, pubs and similar trading businesses are priced on the strength of the business, typically 7.0 to 9.0% a year, indicative, subject to status, accounts and valuation. A shop, office or workshop bought by its occupier usually falls at 6.0 to 7.5% a year on the same basis. Our business mortgages page sets out how a purchase is structured.
Hotels, seafood and island suppliers: what Oban trades in
ONS UK Business Counts 2026, local units. Figures are for the Argyll and Bute local authority area.
Show as a table
| Sector | Businesses | Oban share | UK share |
|---|---|---|---|
| Farming, forestry and fishing | 845 | 17.1% | 4.5% |
| Construction and building trades | 495 | 10% | 12.5% |
| Retail | 485 | 9.8% | 9.3% |
| Professional, scientific and technical | 380 | 7.7% | 14% |
| Restaurants, cafes and pubs | 300 | 6.1% | 6.2% |
| Hotels and accommodation | 290 | 5.9% | 0.8% |
| Business support services | 260 | 5.3% | 8.2% |
| Health and social care | 260 | 5.3% | 5.7% |
| Manufacturing and engineering | 240 | 4.9% | 4.3% |
- 28.9xfishing and aquaculture175 businesses
- 10.6xforestry85 businesses
- 7.1xhotels and accommodation290 businesses
- 4.6xenergy supply55 businesses
A figure of 2.0x means the trade makes up twice the share of local businesses that it does across the UK.
Oban sits in a council area with 290 accommodation businesses, roughly seven times the UK share, and restaurants, cafes and pubs make up 6.1% of firms. Retail is a little above the national average at 9.8% of businesses against 9.3%, reflecting the town's role as the shopping centre for the islands.
Hotels, guest houses and bars change hands regularly here, and they are lent on as trading businesses rather than simple property. Lenders usually price them in the 7.0 to 9.0% band and look closely at how the summer peak carries the business through the quieter months.
How do seasonal takings affect a commercial property loan in the Gateway to the Isles?
Lenders want to see that the business can meet its repayments in February as well as August. For an Oban hotel or café, that means two or three years of accounts alongside monthly management figures showing how cash carries through the quieter months. Growing off-season trade, from events, contracts or island work, strengthens the case.
The ferries help. Oban is Caledonian MacBrayne's busiest terminal, with sailings to Lismore, Colonsay, Islay, Coll, Tiree, Craignure on Mull, Castlebay on Barra and Lochboisdale on South Uist. A new terminal opened in 2005 and a second linkspan in 2007, letting two vessels load and unload at once. Businesses that supply the islands or serve ferry passengers often trade more steadily than pure tourism. The town also sits at the western end of the A85, with ScotRail trains to Glasgow Queen Street and Scottish Citylink coaches from Glasgow's Buchanan bus station.
Oban's industrial ground: Lochavullin, Glengallan and Torrangorm
Named estates and parks listed on Google Maps near Oban, October 2026. Listed to show where premises trade locally; we have no connection with the owners or agents.
- Lochavullin Industrial EstateOban PA34 4HB
- Torrangorm Industrial EstateOban PA34 4PA
- Glengallan Industrial Estate7E Glengallan Rd, Oban PA34 4HG
What does premises finance in Oban, Argyll and Bute cost?
Lenders active in owner-occupier lending usually advance 70 to 75% of the price or valuation, sometimes less for hotels, over 5 to 25 years. The tax is Land and Buildings Transaction Tax: Revenue Scotland charges 0% up to £150,000, 1% from £150,001 to £250,000 and 5% above £250,000 on non-residential property (rates as at October 2026; check the current rates before you buy).
Illustrative example. A company buys a freehold hotel in Oban for £550,000. A 75% loan is £412,500 and the deposit £137,500. LBTT is £16,000, so the business needs about £153,500 before fees. Our LBTT guide gives the full bands.
Argyll and Bute Council is the planning authority, and the lender takes a standard security registered with Registers of Scotland. Commercial lending to a limited company is unregulated and falls outside the FCA's regulated mortgage perimeter. Where a deal would be regulated, for example lending to a sole trader or individual, or a property where the borrower or a close family member will live in part of it, we refer it to an appropriately authorised firm. For the wider area, see Argyll and Bute commercial mortgages.
Parts of Oban where businesses trade
The ferry terminal
The terminal that makes Oban the Gateway to the Isles handles more Caledonian MacBrayne traffic than any other. Cafés, shops, hire firms and suppliers to the islands benefit from the steady flow of passengers and freight, and premises within sight of the ferries tend to trade well in summer.
The town centre and the bay
The horseshoe bay frames the town centre, where hotels, restaurants, bars and shops cluster close to the water. Many buildings are older, and some combine a shop or bar with accommodation above. That makes them semi-commercial, which lenders typically fund up to 75% loan to value.
The A85 approach
Oban sits at the western end of the A85, the main road in from the east. Businesses that depend on vehicle access, such as trades, builders' merchants, garages and wholesalers, tend to look for yards and units on the approaches rather than in the busy centre.
Kerrera, Lismore and Mull
The islands around Oban, including Kerrera, Lismore and Mull, rely on the town for supplies and services. Companies trading on the islands often keep a base in Oban, and some buy a store or depot near the ferry links to serve them.
