Bad Credit Commercial Mortgage

If you’re looking for a commercial mortgage, or would like to commercial remortgage and have an adverse credit history you may find it difficult to get the mortgage product you require from mainstream commercial mortgage lenders. A number of lenders however, specialise in lending to this sector so whatever your circumstance there is probably a commercial mortgage product available for you.

We specialise in bad credit commercial mortgages and self certification commercial mortgages and we can often provide finance for businesses with a number of unusual requirements or circumstances:

• Bad credit accepted: Includes discharged bankrupts, IVA's, any amount of CCJ's and any amount of arrears;
• self certification of income for self employed;
• self employed without accounts;
• tenanted, vacant and investment property.

Remember, if you are turned down by a lender the next lender to assess your application will consider your previous rejection. However, by applying through us you can avoid the risk of this happening.

Bad credit explained

Bad credit is a broad term used by the financial services industry to describe companies and individuals who have faced financial problems, such as county court judgements (CCJs), payment arrears and sometimes bankruptcy. See the Glossary of Terms for a detailed description of these terms.

How will lenders assess my application?

The way a lender deals with an application from someone with bad credit varies from lender to lender. Many lenders will look sympathetically at each application and consider it on its own merits. The final decision on whether to lend and under what terms will depend on how you address the questions they ask and the level of risk to which they feel exposed.

When you apply for a bad credit commercial mortgage or remortgage it is important to be honest about the difficulties you may have experienced in the past. If you can show that you’ve had problems but are working hard to resolve the situation, it will stand in your favour when the lenders assess your application.

Lenders owe a duty of care to their own organisation to make sure they are not lending in a situation where there is an unacceptably high chance there will be non-payment of the mortgage. To aid with this assessment they will use credit checks provided by credit reference agencies, such as Experian and apply these to their own credit scoring system. Based on the score you achieve a lender will decide whether to lend or not and under what terms. A lender may be prepared to offer you a mortgage but you may find that they will charge a higher than average rate of interest, or require personal guarantees that you feel are too restrictive.

At The More Group we specialise in dealing with bad credit and non-standard cases. Applying directly to a lender could cause you further problems if you are rejected as other lenders will consider your past rejection when assessing your new application. However, if you apply through a broker this problem is eliminated, giving you the chance to get a commercial mortgage with out the risk of damaging your credit history further.