If you’ve had a Debt Relief Order (DRO) in the past, you might be wondering whether homeownership is still within reach. The good news? Yes, you can get a mortgage after a DRO! But let’s be real—it won’t be as straightforward as getting a mortgage with a spotless credit history. That’s why understanding the process and knowing your options is so important.
At Mortgage Bridge, we specialize in helping people with bad credit secure mortgages—but really, we’re here for anyone who needs mortgage advice. If you’re trying to figure out how to get a mortgage after a DRO, let’s break it all down together.
What Is a Debt Relief Order (DRO), and How Does It Affect Your Mortgage Chances?
A Debt Relief Order is a type of insolvency designed for people with low income, minimal assets, and debts under a certain threshold. It lasts for 12 months, during which creditors can’t chase you for payments. If your financial situation hasn’t improved by the end of that period, the debts included in the DRO are written off.
Will a DRO Stop Me from Getting a Mortgage?
No, but it can make things harder. A DRO stays on your credit file for six years, which means lenders will see it when assessing your mortgage application. Some lenders may decline, while others specialize in bad credit mortgages.
Can You Get a Mortgage After a Debt Relief Order?
Absolutely! But how soon and on what terms? That depends on a few key factors.
How Long After a DRO Can I Apply for a Mortgage?
- Less than six years ago – Fewer options, likely higher interest rates, but specialist lenders may help.
- More than six years ago – If you’ve rebuilt your credit, you may access standard mortgage deals.
What Credit Score Do I Need for a Mortgage After a DRO?
- No set score, but higher is better. Rebuilding your credit through responsible borrowing and on-time payments will help.
How Much Deposit Do I Need for a Mortgage After a DRO?
- Expect to need at least 15-25%, but the more you save, the better your rates will be.
What Do Lenders Look for When Assessing My Application?
- Steady income, low debt levels, and evidence of financial responsibility since the DRO.
How Can I Get a Mortgage After a DRO? Step-by-Step Guide
1. Check Your Credit Report
- Get reports from Experian, Equifax, and TransUnion.
- Dispute any incorrect information, ensuring all DRO-related debts show as settled.
2. Rebuild Your Credit Score
- Use a credit-builder credit card and pay it off in full.
- Keep bills and rent payments up to date.
- Avoid payday loans or large new debts.
3. Save for a Larger Deposit
- Aim for at least 15-20%.
- A bigger deposit can unlock better mortgage rates and improve approval chances.
4. Speak to a Specialist Mortgage Broker
- High-street banks may say no, but specialist lenders exist.
- At Mortgage Bridge, we find lenders who understand bad credit histories.
5. Get a Decision in Principle (DIP)
- This shows how much a lender might offer before making a full application.
6. Gather Your Documents
- Proof of income (payslips or tax returns for self-employed).
- 3-6 months of bank statements.
- Deposit proof and a short explanation of your DRO (if required).
Which Mortgage Lenders Accept Applicants After a DRO?
While major banks may hesitate, other lenders may be open to your application. Your best options include:
- Specialist bad credit mortgage lenders – They consider applicants with past financial issues.
- Building societies – Some are more flexible than high-street banks.
- Guarantor mortgages – If a family member guarantees your mortgage, your chances improve.
How Can I Improve My Mortgage Approval Chances After a DRO?
✅ Should I Wait Until the DRO Is Fully Removed?
- If you can wait until after six years, better mortgage deals may be available.
✅ How Important Is Stable Income?
- A steady job and consistent income show lenders you’re reliable.
✅ Should I Avoid Payday Loans and New Debts?
- Absolutely! Lenders see payday loans as a red flag.
✅ Will Applying for a Joint Mortgage Help?
- If your partner has a good credit score, it could increase your chances.
Final Thoughts: Can I Get a Mortgage After a Debt Relief Order?
Yes, you can! Getting a mortgage after a DRO takes patience, planning, and the right approach. Your credit history isn’t perfect, but that doesn’t mean homeownership is out of reach.
The key is rebuilding your credit, saving for a deposit, and working with the right broker to find lenders who understand your situation. That’s what we do at Mortgage Bridge—we help people like you every day.
If you’re ready to explore your mortgage options after a DRO, get in touch with us today. Let’s get you one step closer to owning your home! 🏡