Can You Get a Commercial Mortgage with Bad Credit in the UK?

Last updated: 19 September 2026

Yes. Commercial mortgages are assessed differently from residential ones, and the difference works in your favour if you have adverse credit. While residential lenders focus heavily on your personal credit file, commercial lenders place far more weight on the viability of the business, the income the property generates, and the strength of the overall deal. As a result, borrowers with CCJs, defaults, IVAs and even discharged bankruptcy can secure commercial finance when specialist lenders like Together Money, Aldermore and Shawbrook are approached correctly through a broker.

That said, bad credit does not disappear from the equation entirely. It affects your deposit requirement (typically 25% to 40% instead of the standard 20% to 25%), the interest rate you pay, and which lenders are willing to look at your case. However, because commercial lending is fundamentally about the property and the business, a strong commercial proposition can offset personal credit issues in a way that simply is not possible with residential mortgages.

This guide explains how commercial mortgage underwriting differs from residential, which lenders accept adverse credit, what deposit and rates to expect, and how to present your case in the strongest possible way.

Speak to an FCA-regulated adviser about commercial mortgage options with adverse credit →

How Commercial Mortgage Lending Differs from Residential

The fundamental difference is what the lender is assessing. A residential mortgage lender looks primarily at your personal income, your personal credit history, and the property as security. In contrast, a commercial mortgage lender looks primarily at the business case: the income the property generates (or will generate), the viability of the business operating from it, and the commercial value of the asset.

Personal credit takes a back seat

With a residential mortgage, a CCJ or default on your personal credit file can trigger an automatic decline from most high street lenders. Commercial lending works differently because the underwriting is almost always manual rather than automated. An underwriter reviews your full case individually, weighing the commercial merits against the personal credit issues. Consequently, a strong deal with a proven income stream can be approved even when the applicant has significant adverse credit.

The business is the borrower

Many commercial mortgages are taken out through a limited company or special purpose vehicle (SPV) rather than in a personal name. In these cases, the lender assesses the company’s financial position alongside the directors’ personal credit. While a director’s adverse credit still matters, it carries less weight than it would on a personal residential application because the business itself is the primary borrower. For more on limited company structures, see our guide to limited company buy-to-let mortgages.

This does not mean commercial lenders ignore personal credit entirely. They still check your file, and serious unresolved issues (unsatisfied CCJs over £5,000, active IVAs, undischarged bankruptcy) will narrow your options considerably. However, the threshold for what is acceptable is significantly more generous than in the residential market.

Which Lenders Offer Commercial Mortgages with Bad Credit?

The commercial mortgage market has a wider range of specialist lenders than the residential market, and many of them are explicitly set up to handle complex cases including adverse credit. Below are the main lenders your broker is likely to consider.

Lender	Max LTV	Adverse Credit Position	Key Notes
Together Money	Up to 75%	One of the most flexible. Accepts recent defaults, satisfied and unsatisfied CCJs, completed DMPs. Case-by-case manual underwriting.	Fast processing. Covers most commercial property types. Comfortable with complex cases where other lenders decline.
Aldermore	Up to 75%	Accepts satisfied defaults over 12 months. Considers CCJs on a case-by-case basis. Manually underwritten.	Strong for established businesses with a trading track record. Also offers residential and BTL with adverse credit. May restrict certain sectors.
Shawbrook	Up to 75%	Considers adverse credit for commercial and bridging. Manual underwriting with experienced commercial team.	Good for larger commercial deals. Introduced longer fixed-rate options through broker-exclusive products. Competitive on semi-commercial properties.
United Trust Bank (UTB)	Up to 70%	Flexible on historic adverse credit. Primarily bridging and short-term commercial, but also offers longer-term commercial products.	Useful for time-sensitive purchases where speed matters. Bridging can be used as a stepping stone to a longer-term commercial mortgage once credit improves.
West One	Up to 75%	Accepts adverse credit for bridging and specialist commercial. Strong on short-term and refurbishment finance.	Good for development and refurb projects. Bridge-to-term options available.
Paragon	Up to 75%	Considers minor historic adverse on a case-by-case basis. More conservative than Together or Shawbrook on serious adverse.	Tailored sector-specific commercial products. Suited to experienced landlords and investors expanding into commercial.

None of these lenders are available direct to the public for commercial mortgage applications. They operate exclusively through intermediaries, which means a specialist commercial mortgage broker is the only route to access them. For more on why broker-only access matters, see our broker vs comparison site guide.

What Do Commercial Lenders Actually Look At?

Commercial lenders assess four main pillars when deciding whether to lend. Your personal credit history is just one of them, and in many cases it carries the least weight of the four.

The property and its income

The most important factor is the commercial property itself and the income it generates. If you are buying a shop, office, warehouse or mixed-use property with a sitting tenant on a lease, the rental income is the primary basis for affordability. Lenders typically want the rental income to cover 125% to 150% of the mortgage payment. A property with a strong, established tenant on a long lease is a lower risk to the lender regardless of the borrower’s personal credit.

Similarly, if you are buying premises to operate your own business from, the lender will assess your business income and trading history. In general, 2 to 3 years of accounts are preferred, though some specialist lenders accept less.

The business case and experience

Lenders want to see that you have experience in the type of business or property you are buying. For instance, an experienced restaurateur buying a second premises is viewed very differently from a first-time buyer with no hospitality experience. Your track record in the sector reduces the lender’s perceived risk.

The deposit and loan-to-value

Standard commercial mortgages typically require a 20% to 25% deposit. With adverse credit, expect this to increase to 25% to 40%, depending on the severity of your credit issues and the strength of the rest of your application. A larger deposit significantly widens your lender options and can unlock better rates.

Your personal credit history

This is assessed last, not first. Lenders will review your personal credit file and the credit files of any other directors or guarantors involved. However, a commercial underwriter views credit issues in the context of the full deal. An old satisfied default alongside a profitable business, a strong property income stream and a 35% deposit looks very different from the same default on a residential application from someone with a modest salary and a 5% deposit.

How Much Deposit Do You Need?

The deposit for a commercial mortgage with adverse credit is higher than for a standard commercial deal. Here is a general guide.

Credit Situation	Typical Deposit	Notes
Clean credit	20-25%	Standard commercial mortgage terms
Light adverse (old missed payments, small satisfied defaults)	25-30%	Most specialist lenders open at this level
Moderate adverse (satisfied CCJs, completed DMP)	30-35%	Narrower pool, but Together and Aldermore typically open
Heavy adverse (recent CCJs, discharged IVA/bankruptcy)	35-40%+	Very limited options, strong business case essential

For more on how deposit size affects borrowing power across all mortgage types, see our mortgage calculators. If your commercial deposit is coming from equity in a residential property, our commercial mortgage deposit guide covers the full picture.

What Interest Rates to Expect

Commercial mortgage rates are always higher than residential rates, and adverse credit adds a further premium on top. Here is a rough guide to what you can expect in the current market.

Rate ranges by credit profile

For a standard commercial mortgage with clean credit, rates currently sit around 5% to 7% depending on LTV, property type and term. With light adverse credit (old minor issues), expect rates in the 6% to 8% range. For moderate adverse, rates typically move to 7% to 9%. At the heavy adverse end, rates can reach 9% to 12%+ depending on how recently the credit event occurred.

These are higher than residential adverse credit rates because commercial mortgages inherently carry more risk. However, the rental income or business income from the property often covers the higher payments, making the arrangement commercially viable even at elevated rates.

Bridging as a stepping stone

If your credit is currently too severe for a long-term commercial mortgage, a commercial bridging loan can provide short-term finance (typically 6 to 18 months) while you resolve the credit issues. Once the most recent adverse items are older or satisfied, you can then refinance onto a standard commercial term product at a better rate. Bridging rates are higher (typically 0.5% to 1.5% per month), but they serve as a practical entry point when no other route exists. For more on bridging, see our guide to how bridging loans work.

Which Commercial Property Types Qualify?

Most standard commercial property types qualify for adverse credit commercial mortgages, though some lenders restrict certain sectors. Understanding which property types each lender favours helps your broker place the application correctly first time.

Generally well-accepted: retail shops, offices, industrial units, warehouses, medical/dental practices, care homes (with CQC registration), pubs (with food-led income), and mixed-use properties (commercial ground floor with residential above).

Some sectors face more scrutiny. Hospitality and leisure (restaurants, bars, hotels) can be harder to finance with adverse credit because some lenders have restricted this sector following post-pandemic losses. Together Money remains active in hospitality, while Aldermore has been more selective since 2024. Meanwhile, petrol stations, car washes and takeaways are accepted by some specialists but declined by others due to cash-handling risk.

Semi-commercial properties (a shop with a flat above, for example) often sit in a sweet spot because the residential element provides income diversification. Shawbrook and Together are both competitive for semi-commercial with adverse credit.

For startup businesses looking to buy commercial premises, see our existing guide on commercial mortgages for startups.

How to Strengthen Your Application

A commercial mortgage application with adverse credit is assessed on the full package, not just the credit file. The following steps can genuinely shift your case from a decline to an approval.

Lead with the deal

Present the commercial proposition strongly. Prepare a clear business plan (or property income schedule) showing the rental yield, occupancy rate, tenant quality and lease length. If you are buying an investment property, lenders want to see that the rental income comfortably covers the mortgage payment. If you are buying owner-occupied premises, they want to see your business accounts demonstrating sustainable trading income. In both cases, the quality of the deal is your best argument.

Maximise your deposit

Every 5% increase in deposit unlocks better rates and more lender options. If you can move from 25% to 30%, or from 30% to 35%, the improvement in terms can be significant. Additional security (a charge on a residential property, for example) can sometimes reduce the effective LTV and open up options that would otherwise be closed.

Clean up what you can

Before applying, satisfy any outstanding CCJs or defaults that you can afford to pay. A satisfied CCJ is treated more leniently than an unsatisfied one by every lender. In addition, check your credit file with all three agencies (Experian, Equifax, TransUnion) for errors. Small corrections, like a default incorrectly showing as unsatisfied when you have proof of payment, can move you into a better tier at no cost.

Use an experienced commercial broker

Commercial mortgage broking is a specialism. The lenders, criteria, packaging standards and negotiation dynamics are different from residential. A broker who places commercial cases regularly will know which underwriter at which lender is most likely to approve your specific type of deal. This is particularly important for adverse credit cases, where personal relationships between broker and underwriter can make the difference between a decline and an approval.

How UK Mortgage Finder Can Help

UK Mortgage Finder connects you with FCA-regulated, whole-of-market mortgage advisers who have access to specialist commercial lenders including Together Money, Aldermore, Shawbrook, UTB and others. Our advisers understand how commercial underwriting works and can present your business case alongside your credit history in the strongest possible way.

The service is free, with no obligation. Whether you are buying a shop, an office, a warehouse, a mixed-use property, or premises for your own business, our advisers will find the right lender for your deal and your credit profile.

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