Bankruptcy Mortgages: Getting a Mortgage After Bankruptcy
Bankruptcy is one of the most serious adverse credit events, but it doesn't permanently prevent you from owning a home. With specialist advice and time, you can rebuild and secure a mortgage after discharge.
Content reviewed: 13 January 2026
Bankruptcy Mortgages at a Glance
- •You cannot apply while undischarged (usually 12 months after bankruptcy order)
- •Specialist lenders consider applications from day one of discharge
- •Expect 25-30% deposit requirement immediately after discharge
- •Options and rates improve significantly after 3 years post-discharge
- •Bankruptcy is removed from credit file after 6 years
Understanding Bankruptcy and Mortgages
Bankruptcy is a legal process where your assets may be sold to pay your debts. During bankruptcy, you're subject to restrictions including the inability to obtain credit over £500 without disclosing your status. Once discharged (typically after 12 months), these restrictions lift and you can begin rebuilding.
Undischarged Bankrupt
During the bankruptcy period (usually 12 months), you cannot apply for a mortgage. Any property equity may be claimed by the trustee.
Discharged
After discharge, restrictions lift. You can apply for credit and mortgages, though specialist lenders will be needed initially.
Post-Bankruptcy Mortgage Timeline
Day 1 After Discharge
Possible with very specialist lenders. Expect 25-30% deposit requirement. Higher interest rates. Limited lender choice.
1-3 Years Post-Discharge
More specialist lenders available. 20-25% deposit typical. Rates improving. Building clean credit history helps significantly.
3-6 Years Post-Discharge
Near-mainstream options available. 15-20% deposit may be sufficient. Competitive rates accessible with clean credit history.
6+ Years (Removed from Credit File)
Bankruptcy removed from credit file. Full range of mainstream lenders. Standard deposit requirements. Best rates available.
Rebuilding Credit After Bankruptcy
- Register on the electoral roll - This is essential for any credit application and helps establish your address history.
- Get a credit builder card - Use it for small purchases and pay in full each month to build positive payment history.
- Avoid new credit problems - Any missed payments or new adverse credit post-bankruptcy will severely limit options.
- Save for a deposit - A larger deposit significantly improves your mortgage options and rates.
Frequently Asked Questions
Yes, you can get a mortgage after bankruptcy. You must be discharged first (typically after 12 months). Some specialist lenders consider applications from day one of discharge, though most require 1-3 years post-discharge.
You cannot apply while undischarged. After discharge, specialist lenders may consider you immediately, though with higher deposits (25-30%). After 3 years, options improve significantly. After 6 years, bankruptcy is removed from your credit file.
Immediately after discharge: 25-30%. 1-3 years after: 20-25%. 3-6 years after: 15-20%. After 6 years (removed from file): standard deposit requirements apply, typically 10%+.
No. Bankruptcy stays on your credit file for 6 years from the date of the bankruptcy order. After this, it's removed automatically. During those 6 years, specialist lenders can help, with improving options as time passes.
Yes, though it's more challenging than residential. You'll typically need to wait longer post-discharge and have a larger deposit (often 25%+). Buy to let after bankruptcy requires very specialist lending.
Initially, yes. Specialist lenders charge higher rates to offset risk. As time passes since discharge and you rebuild credit, rates improve. After 6 years with good credit, you may access mainstream rates.
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Content reviewed: 13 January 2026