Getting a mortgage after bankruptcy
Getting a mortgage after bankruptcy is possible. However, it can be a difficult process.
But, your credit history isn’t your whole story.
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Updated: August 18th, 2025
Can I get a mortgage after bankruptcy?
Yes, getting a mortgage after bankruptcy is possible. However, it can be a difficult process because lenders consider many factors when assessing an application. These factors include:
- The amount of equity or deposit you have
- How long ago you declared bankruptcy and when it was discharged
- Your credit use in the intervening time
Each lender will look at your finances as a whole, but equally, each will have their own criteria to meet.
Why is it difficult to get a mortgage after bankruptcy?
Lenders make decisions on whether to grant a mortgage application based on their perceived risk. When they assess a applications for a mortgage after bankruptcy, they will look into your credit history, as well as your current circumstances.
If a lender sees bankruptcy on your credit file, they may think you’ll be a high risk in future and decline your application. Some lenders are willing to consider applications for a mortgage after bankruptcy. But, even so, they may still place restrictions on the level of borrowing and impose higher deposits and interest rates.
Getting a mortgage after bankruptcy
Many lenders, particularly those on the high street, will simply decline an applicant with a history of bankruptcy. But there is still a fair amount of choice on the market, with specialist lenders filling the gap left by high street lenders.
The biggest factor that influences a lender’s decision is the date of the bankruptcy. As a rule, remember that the longer amount of time since the bankruptcy occurred, the better.
How long after bankruptcy can I get a mortgage?
If you have been declared bankrupt, it is generally not possible to get a mortgage within the first 12 months from the date of your bankruptcy. This period is seen as too high risk by almost all lenders, regardless of specialist options.
After this initial 12-month period, your options will depend entirely on your individual circumstances. As more time passes, more lenders may consider your application, and the terms offered may improve.
For example:
- After three years, there may be a growing amount of choice available, although your options won’t be as open as if five or six years had passed.
- After six years have passed, nearly all lenders will consider a mortgage application. This is because a bankruptcy will typically be removed from your credit file six years after it was first registered.
The longer the time since your bankruptcy, the less risk you are perceived to be by lenders. To improve your chances, especially in the earlier years, you will typically need to have taken significant steps to rebuild your credit score and financial stability. Providing a larger deposit and accepting potentially higher interest rates can also help mitigate the risk a lender is exposed to, making your application more favourable.
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Which banks lend to discharged bankrupts?
As mentioned, many high street lenders will shy away or even not work with individuals who’ve declared bankruptcy. This means you will need to seek the services of a specialist lender.
These specialist lenders, often able to help with securing a mortgage after bankruptcy, aren’t always open to the general public, but instead, you’ll likely need to use a mortgage broker to access them. As every application is different, and the market is forever changing, it’s difficult to list every lender available.
If you want to get an accurate idea of who might be best suited to your circumstances, get in touch today!
Finding the best mortgage rate as a discharged bankrupt
It’s impossible to list a ‘top ten’ of products with the most attractive rates here, as the mortgage market is highly competitive and constantly shifting. This means what might be the most favourable rate today is unlikely to be the case next week.
However it’s also worth noting that the interest rate is only one aspect of a mortgage after bankruptcy. Considering all aspects of a deal is key to finding the right scheme for you.
Rates charged will vary from lender to lender and also according to your own individual circumstances. Things such as the amount of deposit you can provide, and the time elapsed since the discharge will influence the rate you’re offered.
Essentially, the higher your deposit and more time that has passed, the more chance you have of obtaining a better rate.
Although, it’s important to realise that the product with the lowest interest rate might not work out as the most cost-effective. Mortgages with lower rates tend to also come with higher associated fees. Some even carry quite strict terms for extra payments if you wanted to switch your mortgage in the future.
To increase your chances of obtaining a competitive rate, why not reach out today. Our expert team of advisors are on hand to guide you through the whole process.
Remortgaging after bankruptcy
Similarly to finding a normal mortgage, the same criteria will apply when looking to remortgage your current property after bankruptcy.
While you are still within an active bankruptcy period, it’s highly unlikely that any lender will consider you for a remortgage.
After your bankruptcy has been discharged (usually after 12 months), it becomes possible to remortgage, but your options could be restricted according to a few factors. The longer the time that has passed since your discharge, the more options generally become available.
Initially after discharge, if you are looking to remortgage, you will typically need to put down a very large deposit or already have a significant amount of equity tied up in your current property. Your options will also likely be limited to specialist lenders, and you can expect higher interest rates.
Your options will become much better once twelve months have passed since your bankruptcy was discharged. If you want typical high street rates and their standard required levels of deposit, you will generally need to wait around 3-4 years from discharge.
It’s a good idea to look for ways to pay off your bankruptcy as soon as possible, in what is referred to as an annulment in legal terms. Annulment means the bankruptcy order is effectively cancelled, as if it never happened.
Remortgaging can seem like a way to convert your equity to cash and get your bankruptcy behind you. However, you may find there are significant obstacles involved, especially during the bankruptcy period itself.
During an active bankruptcy, your ability to access any lines of credit or borrowing, including remortgages, is severely restricted. Most lenders will be unwilling to consider your application.
One highly specialist option that might be explored, often before bankruptcy discharge (or immediately after to effect an annulment), is to approach a specific type of ‘second charge’ or ‘annulment finance’ lender. These products can be complex to navigate and typically come with high fees and interest rates due to the significant risk involved. These lenders are usually only accessible through a specialist broker.
After your bankruptcy is discharged, your situation starts to become easier for remortgaging in general. However, securing a remortgage specifically to release funds to pay off debts from the bankruptcy will still be challenging. The bankruptcy will remain on your credit file for six years from the date of the order, limiting mainstream options.
To secure such a remortgage, it’s likely that you’ll require a very significant amount of equity tied up in your current property. While specific percentages vary by lender and individual circumstances, you should be prepared for substantial equity requirements.
How to improve your chances of getting a mortgage after bankruptcy
With an event on your credit history, many lenders will view securing a mortgage after bankruptcy as a major red flag. As mentioned you will not be able to get a mortgage during the actual bankruptcy period.
However, don’t worry, there are a few actions you can take so you’re ready for when you want to apply again:
- Allow time to pass – don’t rush straight into a new mortgage as soon as you think you’re eligible again.
- Take steps to improve your credit rating.
- Reduce any other debts you have.
- Show engagement with your finances.
- Supply a large deposit.
- Get expert advice.
Talking to an expert specialist mortgage broker with many years’ experience will put you in a far stronger position. They will be able to advise you along the way, ensuring you are ready when you come to apply.
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FAQs: Getting a mortgage after bankruptcy
Buy-to-Let mortgages and bad credit mortgages are both specialist areas within the mortgage sector. If you’re in a situation where you are trying to combine the two, then you might expect to come up against some issues.
However, you will not necessarily face double the amount of problems. In fact, your journey to a successful mortgage might be made easier. This is due to you almost certainly needing to work with a specialist mortgage broker in all the arrangements.
When assessing your suitability for the loan, lenders will place less emphasis on your personal income and finances, and instead, they will focus far more importance on the anticipated rental revenue from the property.
A standard requirement of most Buy-to-Let mortgages is a larger-than-average deposit. When you add to this a discharged bankrupt, you will need to provide even more than usual. Typically you’ll be required to put down at least 25–30% of the property’s value up front.
Lenders will also be more likely to accept your application if you’ve managed to keep a spotless credit record since your bankruptcy was discharged.
Like with any mortgage, when applying with a previous bankruptcy a lender will look at a range of your personal information and circumstances. From this information a lender may deem you too risky to lend to, in turn, causing them to decline your application.
Therefore, identifying where you went wrong on your application can be crucial to improving your chances of success in the future. Working with a mortgage broker can allow you to do so.
This is because they will have the expertise to understand all of the criteria which a lender requires.
From here you can then take steps to improve your attractiveness to lenders, better increasing your chances of success.
In certain cases, it may not always be best to reapply to another lender right after being declined. This is because with every application there will be a ‘hard search’ done against your credit report. Too many hard searches can negatively impact your credit score, meaning it could further decrease your future chances.
[1] Experian – The road back from bankruptcy: How long will bankruptcy affect my credit file? (n.d.) – https://www.experian.co.uk/consumer/guides/bankruptcy.html
About the author
Phil Scott: Director
Phil has worked in the financial services industry since 1992, having started with a large insurance company. He went self employed in 1996 as an Independent Financial Adviser before setting up his first company, Needham Market Home Financial in 1999.
After four years, he decided to concentrate solely on mortgages and related insurances, and The Mortgage Centres was born. Since then, Phil has been influential in the opening of several new offices as the business continues to grow.
Qualifications:
- Financial Planning Certificate: 1, 2 & 3 | Year Attained: 1992
- Certificate in Mortgage Advice and Practice (CEMAP) | Year Attained: 2001
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