How to Get a Mortgage After Bankruptcy: Expert Tips & Lender Options
Going through bankruptcy can feel like the end of your financial journey — but it isn’t. With time, planning, and the right support, you can absolutely qualify for a mortgage after bankruptcy and rebuild your path to homeownership.
At Mortgage Bridge, we help people in this exact position every day. Whether your bankruptcy was recent or several years ago, there are specialist lenders ready to consider your application once you’ve taken the right steps.
This guide explains how long you’ll need to wait, what deposit you’ll need, and how to strengthen your chances of approval.
Can You Get a Mortgage After Bankruptcy?
Yes — you can get a mortgage after bankruptcy.
Bankruptcy doesn’t permanently stop you from getting a mortgage. However, lenders will want to see that you’ve rebuilt your credit and financial habits since being discharged.
Many high street banks are cautious, but specialist lenders are much more open to working with borrowers who have proven stability and affordability.
How Long After Bankruptcy Can You Get a Mortgage?
Most people can start applying for a mortgage after bankruptcy once they’ve been discharged for at least 12 months, but the exact timing depends on the lender:
| Time Since Discharge | Lender Options | Typical Deposit |
|---|---|---|
| 1 year | Limited specialist lenders | 25–35% |
| 2–3 years | Wider lender choice | 15–25% |
| 4–6 years | Near-mainstream options | 10–20% |
| 6+ years | Full access to mainstream lenders | 5–10% |
💡 Your credit file clears the bankruptcy after six years, meaning it no longer appears on most credit reports — though some lenders may still ask about it in your application.
How Lenders View Bankruptcy
Lenders see bankruptcy as a sign of past financial difficulty, but they also recognise it as a reset. What they care about most is how you’ve managed your finances since.
They’ll consider factors such as:
- How long ago your bankruptcy was discharged
- Whether you’ve had any credit issues since
- Your current income and employment stability
- Deposit size and how you’ve saved it
- Whether the bankruptcy was caused by one-off circumstances (e.g. illness, redundancy)
With a strong recent record and a solid explanation, lenders can view you as a good risk again much sooner than you might expect.
What Deposit Do You Need After Bankruptcy?
The more recent your bankruptcy, the larger deposit you’ll need.
- Within 1–2 years: typically 25–35% deposit
- 3–5 years: around 15–25% deposit
- 6+ years: as little as 5–10% deposit, similar to standard mortgages
If saving that much feels out of reach, there are alternative routes such as shared ownership or guarantor mortgages, which can make it easier to buy with a smaller deposit.
How to Improve Your Credit After Bankruptcy
The key to getting a mortgage after bankruptcy is rebuilding your credit profile. Here’s how:
1. Check Your Credit Reports Regularly
Access reports from Experian, Equifax, and TransUnion. Make sure your bankruptcy and discharge are correctly recorded — and that all debts included in your bankruptcy show as “satisfied” or “partially settled.”
2. Register on the Electoral Roll
Lenders use this to verify your identity and address history. It’s one of the quickest ways to boost your credit score.
3. Use Credit Responsibly
Take out small, manageable forms of credit — like a credit builder card — and repay in full every month to demonstrate good financial behaviour.
4. Keep Your Accounts Stable
Avoid frequent switching of bank accounts or credit applications. Stability reassures lenders.
5. Save Regularly
Consistent savings, even small amounts, show lenders you can manage money carefully and budget well.
What Mortgage Options Are Available After Bankruptcy?
There are several types of mortgage after bankruptcy products you can explore:
1. Specialist Adverse Credit Mortgages
These are designed for people with past credit issues, including bankruptcy, CCJs, or IVAs. They often allow applications just 12 months after discharge.
2. Joint Mortgages with a Partner
If your partner has a clean credit record, their profile can help balance the application — though lenders will still consider your bankruptcy.
3. Shared Ownership Mortgages
You buy part of a property and rent the rest, reducing the deposit required. Some shared ownership lenders accept applicants with historic bankruptcies.
4. Guarantor or Family-Supported Mortgages
A family member can guarantee or support the mortgage, improving affordability and lowering risk for lenders.
5. Remortgaging After Bankruptcy
If you already own a property and went through bankruptcy, you can remortgage once your discharge is complete and your credit has stabilised — often to release equity or consolidate debt.
How to Strengthen Your Mortgage Application
To improve your chances of approval after bankruptcy, follow these steps:
✅ Save for the biggest deposit you can.
Even an extra 5% can significantly improve your lender options.
✅ Show proof of stability.
Demonstrate consistent employment, address history, and payment habits.
✅ Avoid payday loans or high-interest borrowing.
These can signal risk to lenders.
✅ Provide a clear explanation.
Lenders respect transparency — if your bankruptcy resulted from specific circumstances, be honest about how things have changed since.
✅ Use a specialist mortgage broker.
At Mortgage Bridge, we match your circumstances with lenders who regularly approve applications from clients rebuilding after bankruptcy.
Real-Life Example: Mortgage Approved 2 Years After Bankruptcy
One of our clients went through bankruptcy following a failed business venture. Two years after discharge, they had rebuilt their credit, maintained a stable job, and saved a 20% deposit.
We placed them with a specialist lender who approved their mortgage after bankruptcy at a competitive fixed rate.
They’re now homeowners again — proof that bankruptcy doesn’t have to define your financial future.
Final Thoughts
Getting a mortgage after bankruptcy is entirely possible with the right preparation and advice.
Time, stable income, and careful money management are your best tools for rebuilding your mortgage eligibility. While high street banks may be cautious, specialist lenders can often approve applications much sooner than expected.
At Mortgage Bridge, we help clients like you every day find the right lenders and products to rebuild financial stability through homeownership.
If you’re ready to explore your options, we’d love to help you take that next step.