Mortgage After Bankruptcy: Which Lenders Say Yes and When

By Jake Stott, Knox Mortgages. Reviewed by an adviser authorised under Fort Advice Bureau, FCA FRN 972730. Published 25 September 2026. Last reviewed 25 September 2026.

A mortgage after bankruptcy is a residential or buy-to-let mortgage taken out by someone who has previously been made bankrupt and has since been discharged. It is possible: specialist lenders consider applicants from 1 year after discharge, more lenders open up at 3 years, and most of the market returns once the bankruptcy leaves your credit file 6 years after the order was made. Time since discharge, conduct since, and deposit decide the outcome.

This guide does what the other pages on this topic do not. It names the lenders, quotes their published time-since-discharge rules, shows the maximum loan-to-value you can expect at each stage, and works through the affordability and rate cost with real numbers. If you are still weighing up which insolvency route to take, read our explainer on how long bankruptcy lasts in the UK first. If you had a Debt Relief Order rather than a bankruptcy, our DRO mortgage guide covers that route.

Can I get a mortgage after bankruptcy?

Yes. Once you are discharged, bankruptcy does not bar you from a mortgage in law, and a group of specialist lenders actively lend to discharged bankrupts. What changes is the number of lenders, the deposit they want and the rate they charge. In the first year after discharge the market is close to empty. From 1 to 3 years a handful of specialist lenders will look at the case with a 15% to 25% deposit. From 3 years the choice widens noticeably, with lenders such as Pepper Money and Aldermore publishing a 3 year rule. After 6 years the bankruptcy drops off your credit file and high street lenders come back into play, although some still ask whether you have ever been bankrupt.

The other deciding factor is what has happened since discharge. A clean record, with every payment made on time, is worth more than the passage of time alone. A single missed payment or new default after discharge can close doors that the calendar had opened.

What does discharge mean, and why does the 6 year rule matter?

Discharge is the point at which you are released from most of the debts included in the bankruptcy. In England and Wales it usually happens automatically 12 months after the bankruptcy order. In Scotland the equivalent process is sequestration, and discharge also normally follows after 12 months. Lenders care about two dates: the date of the order and the date of discharge.

The 6 year rule relates to your credit file. The bankruptcy is recorded by the credit reference agencies for 6 years from the date of the bankruptcy order, not from discharge. So if you were made bankrupt in March 2021 and discharged in March 2022, the entry drops off in March 2027. Separately, the Individual Insolvency Register removes a bankruptcy entry 3 months after discharge, unless a Bankruptcy Restrictions Order or Undertaking applies, which can run for 2 to 15 years.

Discharge does not always end everything. An Income Payments Agreement or Order can continue for up to 3 years from the start of the bankruptcy, and the trustee may still have an interest in a property you owned at the time. Lenders will want both settled or explained before they lend.

How long after bankruptcy can you get a mortgage?

You can realistically apply from 1 year after discharge, but you get a meaningful choice of lenders from 3 years and near normal terms from 6 years. The table below shows what to expect at each stage. The LTV and deposit figures are the typical ranges we see across published criteria and specialist product ranges, assuming a clean record since discharge. Individual lender rules follow in the next section.

Two points trip people up. First, lenders count from discharge, but the credit file counts from the order date, so you can be 5 years discharged and already off your file, or 6 years discharged and just coming off it. Second, “discharged 3 years” means 3 full years at the date of application, not the date you start looking.

Which lenders accept discharged bankrupts?

Specialist lenders accept discharged bankrupts, and each publishes its own time-since-discharge rule. The table sets out what each lender’s own criteria say as of September 2026. Criteria change often, so we check the live rule on every case before submission.

Notice the pattern. Nobody in the mainstream will touch a bankruptcy inside 6 years, a small group of specialists covers years 1 to 3, and the 3 year mark is where the market really opens. That is why the timing of your application can matter as much as the size of your deposit.

How much deposit do you need after bankruptcy?

Plan for a 15% to 25% deposit if you are within 3 years of discharge, 10% to 15% from 3 to 6 years, and 5% to 10% once the bankruptcy has left your credit file. The deposit does two jobs. It reduces the lender’s risk, which moves you into a better pricing tier, and it widens the list of lenders you qualify for, because most adverse tiers have a lower maximum LTV than their clean equivalents.

Lenders will also check where the deposit came from. Savings built up since discharge are the strongest evidence of changed behaviour. A gifted deposit from a family member is accepted by most specialist lenders with a signed gift letter. Money that was held back from your trustee during the bankruptcy is a serious problem and will be picked up in underwriting. If you owned a home when you were made bankrupt, confirm what happened to any equity before you apply, because the trustee’s interest can still be live.

How do mortgage rates after bankruptcy compare with mainstream rates?

Rates after bankruptcy are higher, and the gap narrows the further you get from discharge. Within the first 3 years, specialist products typically sit 1.5 to 3 percentage points above the best mainstream rates for the same LTV. From 3 years, near-prime ranges often come within 1 to 2 points. After 6 years with a clean file, you can usually access mainstream pricing.

The right strategy for most people is to treat the first mortgage as a bridge. Take a 2 year fixed rate with a specialist, keep the record spotless, then remortgage onto a cheaper product when you cross the next threshold, whether that is 3 years from discharge or 6 years from the order. A 5 year fix at an adverse rate locks in the most expensive part of your recovery for longer than you need to. The exception is where affordability is tight and a 5 year fix is needed to pass the lender’s stress test.

What does a mortgage after bankruptcy cost? A worked example

Here is an illustrative case using round numbers. The rates are for illustration only and are not a quote.

• Applicant: employed, basic salary £45,000, discharged 2 years and 6 months ago, clean record since.
• Purchase price: £220,000. Deposit: £33,000 (15%). Loan: £187,000 (85% LTV).
• Loan to income: £187,000 divided by £45,000 is 4.16 times income, inside the 4 to 4.5 times cap most specialist lenders apply.
• Term: 30 years, capital repayment.

The adverse premium in this example is £234.47 a month against mainstream pricing, or £5,627 over a 2 year fix. That is the real cost of bankruptcy in the mortgage market, and it is why remortgaging at the right moment matters. Borrowing is also usually capped lower: where a mainstream lender might go to 4.5 or even 5 times income, several adverse tiers stop at 4 to 4.5 times, so on £45,000 your ceiling is roughly £180,000 to £202,500 before the deposit.

Can you get a mortgage while still bankrupt?

No. While you are an undischarged bankrupt, no mainstream or specialist mortgage lender will lend, and it is a criminal offence to obtain credit of more than £500 without telling the lender you are bankrupt. The practical route is to wait for discharge, which is normally 12 months after the order in England and Wales. Use that year to prepare. Register on the electoral roll, open a basic bank account if you do not have one, keep every household bill up to date, and start building a deposit. If you rent, a clean rental record is also worth having in writing from your landlord or agent.

If a Bankruptcy Restrictions Order or Undertaking has been made, the restrictions continue after discharge for between 2 and 15 years, and the entry stays on the Individual Insolvency Register for that period. Most lenders will not consider an application while restrictions are in force, so check your position before you pay for a valuation.

How do I rebuild my credit after bankruptcy?

Build a thin, perfect record rather than a large one. Lenders want to see that the behaviour which led to the bankruptcy has changed, and the quickest proof is 12 to 24 months of on-time payments across a few accounts. Steps that carry weight with underwriters:

1. Register on the electoral roll at your current address. It is the simplest identity check and missing it fails automated scoring.
2. Check all three credit files (Experian, Equifax, TransUnion). Make sure the bankruptcy shows the correct order and discharge dates, and that every debt included in it is marked as settled or partially settled, not live.
3. Use one credit builder card with a small limit, spend a little each month, and clear it in full by direct debit.
4. Keep utilities, phone and any finance agreements perfectly up to date. A missed payment after discharge is judged more harshly than the bankruptcy itself.
5. Avoid payday loans and repeated credit searches. Several lenders decline any payday loan in the last 12 months, and a cluster of hard searches looks like credit hunger.
6. Keep your bank statements clean for at least 3 months before applying: no returned direct debits, no unarranged overdraft, no gambling transactions.

For a wider view of rebuilding after adverse credit, see our bad credit mortgage guide.

How does bankruptcy compare with an IVA or DRO for a mortgage?

All three are formal insolvency and all three stay on your credit file for 6 years, but lenders treat them differently. A DRO is short and small. An IVA runs for 5 to 6 years, so by the time it completes it is often close to leaving your file. Bankruptcy is the most serious in a lender’s eyes, but because discharge usually comes after 12 months, the clock starts running sooner than with an IVA.

If you are comparing routes, read our guides to a mortgage after an IVA, a Debt Relief Order mortgage and a debt management plan mortgage. The choice of insolvency route is a debt advice decision, not a mortgage one, so take free debt advice before you commit.

I have been declined before. Can I still get a mortgage after bankruptcy?

Usually, yes. A decline after bankruptcy is rarely a verdict on the whole market. It normally means the application went to the wrong lender for the time since discharge, or an avoidable problem tripped automated scoring. The biggest risk after a decline is applying again straight away to another lender that does not fit, which adds a second hard search and a second decline.

Previously declined applicants are one of the groups we work with most. The fix is to diagnose before reapplying: pull all three credit files, match your exact discharge date against each lender’s rule, and check whether other adverse, such as a CCJ or default registered after discharge, is what actually caused the decline. Most declined cases are placeable once the right lender is matched to the real profile.

Why do bankruptcy mortgage applications get declined, and what is the fix?

Most declines come from a small number of repeat causes. Each one has a fix, and most can be spotted before an application is made.

Can a joint application help after bankruptcy?

It can help affordability, but it does not cancel the bankruptcy. Lenders assess the case on the weaker applicant’s credit history, so a joint application with a partner who has a clean file still has to meet the lender’s bankruptcy rule. What a second income does is lower the loan to income ratio and increase the amount you can borrow, which can move you into a lender with a tighter multiple. Leaving the bankrupt partner off the mortgage is an option with some lenders, but most require anyone who will live in the property and is married to or in a civil partnership with the applicant to be on the mortgage, so it is not a reliable workaround.

Case study: bankrupt in 2021, homeowner in 2024

This is an anonymised, illustrative case based on the type of work we do. A self-employed electrician was made bankrupt in early 2021 after a business failure and was discharged 12 months later. He came to us having been declined by his own bank online, which had not mentioned the bankruptcy at all but had scored him out automatically.

At the time he was 2 years and 7 months discharged, with 2 years of accounts showing net profit of £48,000, a clean record since discharge, and a £36,000 deposit on a £240,000 house (15%). His credit files still showed two old credit cards as live defaults despite being included in the bankruptcy. We had both corrected using his discharge certificate, then placed the case with a specialist lender whose tier accepted 2 years since discharge, on a 2 year fixed rate. The plan on day one was a remortgage at 3 years from discharge onto a near-prime rate, which is on track.

Can you get a buy-to-let mortgage after bankruptcy?

Yes, but later and with a bigger deposit than for a home. Most buy-to-let lenders want at least 3 years since discharge, and a 25% to 35% deposit is typical. Buy-to-let lenders also usually require you to already own your own home, which after bankruptcy often means buying a residential property first. Note that Precise’s buy-to-let lending is now under OSB Group’s Rely brand, whose published adverse tiers focus on CCJs and defaults, so bankruptcy cases need confirming with the lender before submission.

Frequently asked questions

How long after bankruptcy can I get a mortgage?

From about 1 year after discharge with a small group of specialist lenders, such as Bluestone’s A and BBB tiers. The choice widens at 3 years, when Pepper Money and Aldermore’s Levels 4 and 5 accept discharged bankrupts, and most of the market returns once the bankruptcy leaves your credit file 6 years after the order.

Can I get a mortgage while I am still bankrupt?

No. Lenders will not offer a mortgage to an undischarged bankrupt, and obtaining credit over £500 without disclosing the bankruptcy is a criminal offence. Discharge usually happens automatically 12 months after the order in England and Wales, so use that year to build a deposit and a clean payment record.

Do I have to declare bankruptcy after 6 years?

Only if the application asks. Many lender forms ask about bankruptcy in the last 6 years, but some ask whether you have ever been bankrupt. You must answer the question as written. Declaring it when asked rarely matters after 6 years, while failing to declare it can void the application.

Can I get a mortgage 1 year after discharge?

Sometimes. Bluestone accepts applicants discharged over 1 year on its A and BBB tiers, and some packager-only products consider 1 year. Expect a 20% to 25% deposit, a higher rate and a lower income multiple. Waiting until 3 years usually gives you more lenders and cheaper pricing.

What deposit do I need for a mortgage after bankruptcy?

Typically 15% to 25% within 3 years of discharge, 10% to 15% from 3 to 6 years, and 5% to 10% once the bankruptcy is off your credit file. A larger deposit lowers the rate tier and increases the number of lenders available.

Does bankruptcy affect my partner’s ability to get a mortgage?

Not their own credit file, because bankruptcy is personal and does not appear on a partner’s file. But on a joint application the lender assesses both of you, so the bankruptcy rule still applies. A financial association only exists where you share joint credit.

Can I remortgage to a better rate after bankruptcy?

Yes, and you should plan for it. The usual route is a 2 year fix with a specialist lender, then a remortgage when you pass the next threshold: 3 years from discharge, or 6 years from the order when it leaves your file. Each step typically brings a lower rate.

Is bankruptcy treated differently from an IVA by lenders?

Yes. Bankruptcy is viewed as more serious, but because discharge is usually after 12 months, the time-since-discharge clock starts earlier than with a 5 to 6 year IVA. Aldermore, for example, accepts IVAs from 1 year after completion on Level 5 but bankruptcy only from 3 years.

Speak to a broker before you apply

Bankruptcy cases are won or lost on lender selection. The same applicant can be declined by one lender and accepted by another on the same day, purely because of how each counts the time since discharge. We are whole-of-market, we check every lender’s live criteria against your exact dates before any search is run, and we tell you honestly if waiting 6 months would get you a materially better deal. Book a free discovery call and we will map out your options in 30 minutes.

---

Your home may be repossessed if you don’t keep up repayments on your mortgage.

Knox Mortgages is a trading style of Fort Advice Bureau which is regulated and authorised by the FCA to conduct Mortgage and Protection business, FRN: 972730