Mortgage after bankruptcy (discharged)
A mortgage after a discharged bankruptcy is possible in the UK through specialist lenders. You cannot borrow while still an undischarged bankrupt, but after discharge your options grow with time since discharge, clean conduct, and a healthy deposit. Bankruptcy is recorded for six years from when it began, so as it ages and drops off, the choice of lenders widens and the rate premium falls back towards mainstream.
Time since discharge is the key
Once you are discharged, the clock that matters is how long ago that was and how clean your record has been since. Soon after discharge, a smaller group of specialist lenders will help, typically wanting a larger deposit. As more clean years build up, more lenders accept you and rates improve. Because the bankruptcy is recorded for six years from when it began, much of the heavy lifting is simply time plus good conduct.
What helps most
- A clear stretch of clean credit since discharge.
- A deposit above the minimum, particularly in the early years.
- Stable income and being on the electoral roll.
- A short, honest explanation of the circumstances, now resolved.
Common questions
Can I get a mortgage after bankruptcy?
Yes, once you are discharged. You cannot get an ordinary mortgage while still an undischarged bankrupt, but after discharge, specialist lenders will consider you. The longer ago the discharge and the cleaner your record since, the more lenders and better rates become available.
How long after discharge do I need to wait?
There is no single fixed period across all lenders. Some specialists consider applications soon after discharge with a larger deposit; many more open up once a few years have passed. Bankruptcy is recorded for six years from the date it began, and options widen as that ages and drops off.
How big a deposit will I need?
Usually larger than standard, especially soon after discharge, to offset the lender's risk. As more clean years pass, the deposit requirement and the rate premium both reduce, moving you back towards mainstream terms over time.
What will strengthen my application?
A clear period of clean credit since discharge, being on the electoral roll, a stable income, a healthy deposit, and a straightforward explanation of what happened. A broker who places post-bankruptcy cases knows which lenders accept how soon after discharge.
Related: mortgage after an IVA and the adverse-credit hub.
Founder, MortgageExplained
Adam spent over eight years as a mortgage adviser at Just Mortgages, with further experience in commercial finance. He is CeMAP and CF qualified. He built MortgageExplained to do one thing well: explain mortgages in plain English, so you know where you stand before you speak to a regulated broker. Every page on the site is written by Adam.
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