Skip to content

Bad Credit Commercial Mortgage: How to Get Approved

Tailored, Professional Commercial Mortgage & Loan Advice made to fit your circumstances and needs.
Commercial Mortgage Types
Business Loan Types
Business Sectors

You can read our Legal Information & FCA Disclaimer at the bottom of this page.

If you have bad credit, you might be wondering if it’s still possible to get a commercial mortgage. The answer is yes, it’s still possible! In this article, we’ll explore how bad credit can impact your commercial mortgage application.

Firstly, we’ll answer the question: can you get a commercial mortgage with bad credit? We’ll discuss which lenders are available, which credit problems lenders will accept, and how commercial mortgage lenders assess bad credit applicants. We’ll also look at how to get a commercial mortgage with adverse credit and how to refinance a commercial mortgage with bad credit. Finally, we’ll provide you with some frequently asked questions to help you better understand the process.

Key Takeaways

  • It’s still possible to get a commercial mortgage with bad credit.
  • Speaking to a commercial mortgage specialist can help you navigate the process.
  • Understanding how commercial mortgage lenders assess bad credit applicants is important.

Can You Obtain a Commercial Mortgage with Bad Credit?

Yes, it is possible to get a commercial mortgage even if you have a bad credit history. There are many commercial mortgage lenders in the market who may still accept your application, but you need to apply to the right ones. However, these lenders may charge you a higher mortgage rate, ask you to provide extra security, or requesting a personal guarantee. It is important to note that bad credit commercial mortgages may have stricter assessment criteria.

Speak to Our Commercial Mortgage Expert

Maximise your chance of approval by consulting with a professional commercial mortgage broker. They have the knowledge and experience to help you navigate the complex process of securing a commercial mortgage.

By working with an expert, you can increase your chances of finding the right commercial mortgage for your business needs.

How Can I Get a Commercial Mortgage with Adverse Credit

If you have adverse credit, securing a commercial mortgage can be challenging. However, there are still options available to you. The following steps can help you secure a commercial mortgage despite having bad credit:

  1. Prepare a business plan: A well-prepared business plan can help you demonstrate to lenders that you are a viable borrower. Your mortgage broker can advise you on what to include in your business plan.

  2. Optimise your credit reports: Your mortgage broker can help you download and optimise your credit reports. They can also suggest ways to build and repair credit quickly before submitting your application.

  3. Find the ideal commercial mortgage lender: Your mortgage broker will have deep working relationships with commercial lenders who are best placed to help individuals or businesses with bad credit. They may also be able to access exclusive rates and deals through them.

  4. Consider a higher deposit: A higher deposit can help you secure a commercial mortgage with bad credit. Lenders may be more willing to lend to you if you can put down a larger deposit.

  5. Consider an interest-only mortgage: An interest-only mortgage can help you keep your monthly repayments low. However, it is important to remember that you will need to repay the full amount at the end of the term.

Despite having adverse credit, it is still possible to secure a commercial mortgage. By following the steps above and working with a specialist mortgage broker, you can find a lender who is willing to work with you.

Related Posts:

Which Lenders Can I Approach?

There are several commercial mortgage lenders available in the UK, including high street banks and specialist lenders. It’s important to note that each lender has its own criteria and requirements, so it’s essential to research and compare different lenders before making a decision.

Related Posts:

Which Credit Problems Will Lenders Accept?

If you have bad credit, it can be challenging to secure a commercial mortgage. However, some lenders may still accept your application, depending on the severity and type of credit problems you have:


A default is a missed payment. Mortgage defaults are considered very seriously while defaults on other loans and bills are a little less serious. Any type of defaults can sometimes cause mortgage to be declined, especially if they are recent or more than one, but single defaults and defaults that are more than two years old might be overlooked.


An Individual Voluntary Agreement (IVA) is a strategy designed to extend your personal or business debt repayments over a period longer than originally set, often spanning up to six years. While this revised repayment plan requires the approval of your creditors, it might still appear as a series of missed payments based on the initial schedule on your credit report, potentially deterring future lenders.

If you currently hold an IVA, obtaining a commercial mortgage may pose challenges. However, after its completion and establishing a track record of timely payments for a period, such as 12 months, your chances improve. This also applies to Debt Management Plans (DMP).


A County Court Judgment (CCJ) is a legal directive acquired by a creditor, compelling you to repay individual debts or business-related obligations. If a CCJ is new, unsettled, or exceeds £1000, it can jeopardize your application. However, once the CCJ is completely settled and over three years old, many lenders might disregard it. Some might even consider your application favorably before that period.

Repossessions and Bankruptcy

After being declared bankrupt, you’re prohibited from serving as a director of a limited company until your bankruptcy is lifted, typically after a year. Once this period ends, you can establish a new company. Yet, most financial institutions will likely reject your mortgage application.

However, if you maintain good credit for six years post-bankruptcy, you might qualify for a commercial mortgage with certain lenders. The rules for repossessions are comparable since they’re viewed with similar severity as bankruptcies. Nonetheless, it’s important to note that commercial loans are evaluated individually, offering more flexibility than residential loans.

Overall, it is important to remember that each lender has their own criteria and policies for assessing commercial mortgage applications. While having bad credit can make the process more challenging, it is not impossible to secure a commercial mortgage with the right lender and circumstances.

How Lenders Assess Bad Credit Applications?

Commercial mortgage lenders assess bad credit applicants on a case-by-case basis, as this unregulated sector of finance allows lenders to be more flexible. The lender will look at all the circumstances surrounding your bad credit, including its age, severity, and reason for it. They may offset this information against the strength of your business plan or investment. There is no strict criteria you need to meet, as commercial mortgage lenders can set their own bespoke requirements.

Related Posts:

Remortgaging a Commercial Mortgage with Bad Credit

If you have bad credit and need to refinance your commercial mortgage, it can be challenging to find a lender who will consider your application. However, there are still options available. You may need to accept higher monthly payments, but it’s essential to shop around for the best deal.

Consider approaching specialist lenders who focus on bad credit commercial mortgages. They may be more willing to consider your application and offer a competitive rate.

Related Posts:

Related Posts:

Speak to our Commercial Mortgage Expert

Increase your chances of approval by consulting with a specialist broker. A commercial loan broker can connect you with suitable lenders to meet your funding needs. They have industry knowledge and relationships with a wide range of commercial lenders. This enables them to match your unique requirements with the most suitable lenders.

Expert commercial mortgage advisors can also take a look at your credit profile and give you an idea of the possibilities available to you. They can help you navigate the complex world of commercial mortgages, ensuring you make informed decisions that suit your needs.

Don’t hesitate to contact a commercial mortgage expert to guide you through the process and maximize your chance of approval.

Related Posts:

Frequently Asked Questions

What is the minimum credit score required for a bad credit commercial mortgage?

Different lenders have different requirements, but generally, a credit score of at least 600 is needed to qualify for a bad credit commercial mortgage. However, some lenders may be more flexible and may consider other factors such as your income, assets, and debt-to-income ratio.

How can you find lenders that offer bad credit commercial mortgages?

There are several ways to find lenders that offer bad credit commercial mortgages. You can start by searching online, asking for referrals from friends or colleagues, or working with a mortgage broker who specializes in bad credit commercial mortgages. It’s important to do your research and compare rates and terms from different lenders to find the best option for your needs.

Is it possible to get a commercial mortgage with no credit check?

While it’s possible to find lenders that don’t require a credit check, it’s important to be cautious as these lenders may charge higher interest rates and fees. Additionally, not having a credit check may limit the amount of financing available to you. It’s recommended to work with reputable lenders and consider improving your credit score before applying for a commercial mortgage.

What factors do lenders consider when approving bad credit commercial mortgages?

Lenders consider several factors when approving bad credit commercial mortgages, including your credit score, income, assets, debt-to-income ratio, and the value of the property you’re purchasing. They may also consider the type of business you’re running and your business plan.

What is the typical down payment required for a bad credit commercial mortgage?

The typical down payment required for a bad credit commercial mortgage is around 25% to 40% of the property’s value. However, some lenders may require a higher down payment depending on your credit score and other factors. It’s important to check with your lender to determine the specific down payment requirements for your loan.

Whole of Market

We have access to thousands of mortgage deals with very best rates from different lenders. Talking to us is like talking to 100+ lenders at the same time.

%100 Independent

We provide impartial information, which is not always available from a bank or lender.                                                                                                  

Still have questions? Ask us anything…

Take advantage of our knowledge and expertise, there is no obligation. If you have a specific question drop us a line and our experienced broker will provide you the best expert help possible.

Enter Name *
Type email address *
Subject *
Phone No *

Legal Information & Disclaimer

This site is an information only site. All of our articles are written by authorised mortgage brokers for the only aim of providing great, useful, mortgage and loan related information. We intent to offer the best possible suggestions and guides however can’t always guarantee to be perfect, please use the information at your own risk. We can’t accept responsibility if things go wrong. Please contact us via our contact page if you see anything that requires changing and we will do so as soon as possible.

The articles on our site do not provide financial advice. Instead, they aim to equip you with the necessary information to attain your mortgage objectives. 

** The content provided in this page is correct at the time of writing. Mortgage and loan lender’s qualifying criteria and rules change frequently so speak to an adviser to confirm the most up to date rules and criteria. The content on the website is not specific advice to each reader, and does not constitute financial recommendations.