How to Get a Mortgage After a Debt Relief Order

A Debt Relief Order (DRO) offers vital protection for people unable to repay certain debts. Once discharged, a DRO can provide a clean financial slate — but many borrowers are unsure how it affects future mortgage applications. The good news is that getting a mortgage after a Debt Relief Order is possible, but lenders will assess several factors, including how long ago the DRO was issued, your financial behaviour since, and the level of deposit you can provide.

This guide explains how lenders view DROs, when you may be eligible, and the steps you can take to strengthen your application. This article provides general information only and does not offer regulated mortgage advice.

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What Is a Debt Relief Order?

A Debt Relief Order is a form of debt solution designed for people with:

• Low income
• Low assets
• Debts below a set threshold
• Limited ability to repay what they owe

During the DRO period (typically 12 months), creditors cannot take recovery action. At the end of the period, qualifying debts are written off.

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How a DRO Affects Your Credit File

A DRO appears on your credit file for six years from the date it was approved. During this time, it may impact:

• Affordability assessments
• Lender choice
• Internal scoring
• Application scrutiny

However, the impact reduces as time passes — especially after the DRO is discharged.

Common markers that lenders may see include:

• The DRO itself
• Accounts included in the DRO (usually marked as settled or partially settled)
• Any missed payments before the DRO

Once the six-year period ends, the DRO and associated adverse entries drop off your report entirely.

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Can You Get a Mortgage While a DRO Is Active?

No — it is not possible to get a mortgage during an active DRO.
Lenders require financial stability and disposable income, both of which are restricted under a DRO.

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Can You Get a Mortgage After a DRO Is Discharged?

Yes. Once the DRO period ends, you may be eligible for a mortgage depending on:

• The age of the DRO
• How your credit file looks now
• Bank statement conduct
• Income and employment stability
• Deposit size
• Lender policy

Different lenders take different approaches.
Mainstream banks often require more time to pass, while specialist lenders may consider applications sooner.

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How Long After a DRO Until You Can Get a Mortgage?

Eligibility varies by lender, but typical patterns include:

0–2 Years After DRO

• Most high-street lenders decline.
• Some specialist lenders may consider applications with a substantial deposit and strong recent conduct.

2–4 Years After DRO

• Wider choice of specialist lenders.
• Strong bank statement conduct becomes essential.
• Deposit requirements may remain higher (15%–30%).

4–6 Years After DRO

• Many lenders become more flexible.
• Smaller deposits may be acceptable depending on credit rebuilding.

6+ Years After DRO

• DRO no longer appears on your credit file.
• Options may align closely with standard lending criteria, assuming clean behaviour since.

These are general patterns — each lender sets its own policy.

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What Lenders Check When Assessing a Mortgage After a DRO

1. Your Recent Payment History

Most weight goes to the last 12–24 months. Lenders expect:

• No missed payments
• Stability on all active accounts
• Controlled use of credit

2. Bank Statement Conduct

Underwriters analyse:

• Spending habits
• Use of overdrafts
• Returned direct debits
• Evidence of budgeting
• Income consistency

Even with a past DRO, strong conduct can make a significant difference.

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3. Deposit Size

Deposit is one of the biggest factors in DRO-related applications.

General expectations:

• 5–10% deposit — unlikely until the DRO is older
• 10–20% deposit — more realistic from years 2–4
• 20–30%+ deposit — may open options earlier

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4. Overall Credit Rebuilding

Lenders will assess:

• Whether active accounts are well managed
• Whether utilisation is low
• Whether adverse events have stopped
• Whether you’ve shown consistent improvement

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5. Employment and Income Stability

Stable employment and predictable earnings make approval more achievable.

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Steps to Improve Your Chances of Getting a Mortgage After a DRO

(General Information Only)

1. Build at Least 12 Months of Perfect Conduct

This includes:

• No late payments
• Stable bank activity
• Controlled spending

This is often the single strongest signal for underwriters.

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2. Keep Credit Card Utilisation Low

Where possible, keep utilisation under 30%. This improves internal scoring and demonstrates responsible credit management.

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3. Avoid New Borrowing

New loans or credit cards may raise concerns about affordability and stability.

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4. Check the Accuracy of All Three Credit Files

Make sure:

• The DRO end date is correct
• Accounts included in the DRO are marked as settled or partially settled
• No old adverse markers remain incorrectly open

Correcting errors can significantly improve outcomes.

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5. Increase Your Deposit

Higher deposits reduce lender risk and may lower the interest rate you’re offered.

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6. Prepare a Clear Explanation for Underwriters

A short, factual summary helps provide context.
For example:

• Cause of financial difficulties
• Resolution of circumstances
• Steps taken to regain control
• Evidence of stability since the DRO

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7. Improve Bank Statement Behaviour

Aim to show:

• Positive balance maintenance
• No unarranged overdrafts
• Predictable spending
• Savings habits (if possible)

Underwriters rely heavily on this.

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Common Scenarios and How Lenders Respond

Scenario 1: DRO completed 12–24 months ago

Specialist lenders may consider applicants with strong recent conduct and a larger deposit.

Scenario 2: DRO over 3 years old with clean behaviour since

Good affordability and deposit support can make approval more achievable.

Scenario 3: DRO over 6 years old

The DRO no longer appears on the credit file, so lenders may assess the application normally.

Scenario 4: DRO completed but new adverse credit recorded

This may limit options until recent conduct improves.

Scenario 5: DRO completed and credit builder usage is positive

This can reassure underwriters that the applicant is managing credit well.

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Summary

Getting a mortgage after a Debt Relief Order is possible, but timing and preparation are crucial. Lenders focus on:

• How long ago the DRO was completed
• Your recent financial behaviour
• Bank statement and credit conduct
• Deposit strength
• Income and employment stability

With strong recent conduct and well-organised documentation, many applicants successfully secure mortgages in the years after a DRO.

This article provides general information only. For personalised guidance, regulated mortgage advice is required.