Quick answer: Adverse credit does not always rule out a commercial mortgage, but it affects which lenders will consider the case and how it is priced. Lenders look at the credit history of the borrower and any guarantors alongside the property and the income. Telling your broker about any issues at the start means we approach only the lenders likely to say yes, and we will tell you early if a case is unlikely to work. Nothing here is a promise of approval.
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 does credit history affect a commercial mortgage?
Lenders assess the credit file of the borrower and of any directors or guarantors. Credit history affects which lenders will consider the case and how it is priced, but a strong property, a strong tenant or a strong deposit can help. Lenders differ widely in how they treat credit issues, which is one reason lender choice matters.
Why early disclosure matters
Issues that surface during underwriting rather than at the start are a common reason for declines. A decline is recorded, and a run of them makes each subsequent lender harder to convince. Telling us at the start lets us approach the right lenders and avoid unnecessary searches on your file.
What can help a case with credit issues
- A strong property that would be easy to let or sell
- A meaningful deposit with a clearly evidenced source
- Up to date accounts and management figures showing the income comfortably covers the payment
- A clear explanation of what happened and what has changed since
- Time, where the issue is recent and a lender is more likely to look favourably later
What to prepare
- A summary of any credit issues, such as arrears, defaults or county court judgments, with dates and current status
- Two to three years of filed accounts and up to date management figures
- Details of the property and, on an investment, the tenancy agreements
- Evidence of the deposit and its source
- Identification and address verification for all directors and guarantors
You can request your own credit report from the UK credit reference agencies to check what lenders will see.
What affects the cost
We cannot quote a single rate, because lenders price each case individually. Pricing depends on the property, how recent and serious any credit issues are, 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. Cases with credit issues can take longer if more information is needed.
How to get a commercial mortgage with credit issues through Sadi's Commercial Finance
- Speak to a specialist. Tell us about the property, your plans and any credit issues from the start.
- Share the numbers. Provide the information the lender will need, together with a clear summary of the credit position.
- Get matched with a lender. We approach only lenders likely to consider the case and secure an Agreement in Principle where possible.
- 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 with a poor credit history?
Sometimes. Credit history affects which lenders will consider the case and how it is priced, but a strong property or a strong tenant can help. Tell us about any issues at the start so we approach the right lenders and do not leave unnecessary searches on your file.
Will adverse credit mean a higher rate?
It can affect pricing, because lenders price each case individually and the credit file of the borrower and any guarantors is one of the factors. We cannot quote a rate, and any terms are confirmed only in a lender's formal offer.
Should I tell my broker about credit issues?
Yes, at the start. Issues that surface during underwriting are a common reason for declines, and a decline is recorded on your file.
Does a company's credit history matter if I buy through a limited company?
Yes. Lenders usually assess the directors and guarantors as well as the company, so their credit history affects which lenders will consider the case and how it is priced.
Can I check my own credit file?
Yes. You can request your credit report from the UK credit reference agencies to see what lenders will see.
Is approval guaranteed?
No. Every case is assessed on its own merits by the lender. We will tell you early if a case is unlikely to work.
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.