Can I Get a Mortgage After Bankruptcy? What Really Happens and How to Improve Your Chances

Bankruptcy is one of the most serious forms of adverse credit, and many borrowers worry it means they will never be approved for a mortgage again. The truth is more positive: while it can take time and preparation, getting a mortgage after bankruptcy is entirely possible. Lenders regularly assess applications from discharged borrowers, and many cases are approved when the right criteria are met.

This guide explains how long you may need to wait, what lenders look for, how bankruptcy affects your credit file and the practical steps that can strengthen your application. This article provides general information only and does not offer regulated mortgage advice.

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How Bankruptcy Affects Your Ability to Get a Mortgage

When you are declared bankrupt:

• Your credit file records the bankruptcy for six years
• Most unsecured debts are legally cleared
• Your credit score drops significantly
• You may find mainstream lenders temporarily unavailable

However, bankruptcy does not prevent you rebuilding your financial profile and applying for a mortgage in the future.

Once discharged — usually after 12 months — you can begin preparing for borrowing again.

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Can You Get a Mortgage Immediately After Bankruptcy?

During bankruptcy

You cannot take out new credit over £500 without disclosing bankruptcy to the creditor.

After discharge

You can apply for credit again, but:

• Lender options are extremely limited
• High-street lenders will not lend at this stage
• Specialist lenders may consider cases, but usually only after a waiting period and with a substantial deposit

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How Long Should You Wait to Apply for a Mortgage After Bankruptcy?

Lenders use different timeframes.

0–12 months after discharge

• Specialist lenders only
• Requires a larger deposit (often 25–35%)
• Higher interest rates likely

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12–36 months after discharge

• A wider range of specialist lenders becomes available
• Deposit requirements may reduce to 15–25%
• Strong bank conduct is essential

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36–72 months after discharge

• Many high-street lenders may begin to consider applications
• Deposit requirements may fall to 10–20%
• Clean credit behaviour during this period is vital

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After 6 years

• Bankruptcy automatically drops off your credit file
• Some lenders may no longer require you to declare it
• More competitive rates may become available

The longer the time since bankruptcy, the better your mortgage options typically become.

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What Lenders Look for in a Mortgage Application After Bankruptcy

Lenders do not focus only on the bankruptcy itself — they also look at what has happened since.

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1. Recent Credit Behaviour

Lenders want to see:

• No missed payments
• No further adverse credit
• Controlled use of credit cards
• No recent payday loans

Stable behaviour carries significant weight.

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2. Bank Statement Conduct

Underwriters assess 3–6 months of statements for:

• No unarranged overdrafts
• No returned direct debits
• Evidence of budgeting
• Predictable incoming and outgoing transactions

Positive behaviour helps rebuild trust.

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3. Deposit Strength

Higher deposits reduce lender risk and expand available options.

Typical requirements:

• Immediately after discharge: 25–35%+ deposit
• 1–3 years post-discharge: 15–25% deposit
• 3–6 years post-discharge: 10–20% deposit
• After 6 years: standard deposit options may apply

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4. Income Stability

Lenders look for:

• Consistent employment
• Regular payslips or accounts (for self-employed applicants)
• No significant income fluctuations

Stable income is essential when adverse credit is present.

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5. Overall Affordability

Lenders apply stress-testing to ensure you can comfortably afford repayments, reviewing:

• Credit commitments
• Living costs
• Debt-to-income ratio
• Surplus income

Even discharged borrowers must meet standard affordability rules.

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How Bankruptcy Appears on Your Credit File

Bankruptcy is recorded across the three main credit agencies:

• Experian
• Equifax
• TransUnion

It remains visible for six years from the bankruptcy date. Even after dropping off, lenders may still ask whether you have ever been bankrupt, so full transparency is essential.

Your file may show:

• The bankruptcy order
• Accounts included in bankruptcy marked as “partially settled” or “defaulted”
• Defaults dated around the bankruptcy event

Having the correct dates recorded is crucial to ensure accuracy.

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Rebuilding Your Credit After Bankruptcy

(General Information Only)

1. Check Your Credit Files Regularly

Ensure all accounts included in the bankruptcy show:

• £0 balances
• Correct dates
• “Satisfied” or “Settled” status

Incorrect information can affect underwriting.

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2. Use Credit Carefully

Small, manageable credit accounts — used responsibly — help rebuild trust.

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3. Pay Everything on Time

Recent payment behaviour is one of the strongest indicators of recovery.

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4. Avoid Over-Borrowing

Lenders will notice if credit utilisation is too high.

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5. Build Savings for a Larger Deposit

Deposit strength often decides approval for post-bankruptcy applicants.

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6. Maintain Strong Bank Conduct

Avoid:

• Unarranged overdrafts
• Returned payments
• Irregular spending patterns

Lenders rely heavily on recent bank activity.

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Can You Get a Mortgage With Bad Credit After Bankruptcy?

Yes, depending on:

• How long ago the bankruptcy occurred
• Your current financial behaviour
• Deposit size
• Income stability

Even with lingering adverse credit, some specialist lenders can consider cases once sufficient time has passed since discharge.

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Example Borrower Scenarios

Scenario 1: Applicant discharged 3 years ago with 20% deposit

Often acceptable for several lenders.

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Scenario 2: Applicant discharged 12 months ago with 30% deposit

Possible with specialist lenders if recent conduct is strong.

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Scenario 3: Applicant discharged 6 years ago, all defaults now dropped off

Often treated similarly to applicants with clean records.

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Scenario 4: Self-employed applicant 4 years post-bankruptcy

Lenders may require 1–3 years of accounts showing stable or improving income.

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Summary

Getting a mortgage after bankruptcy is achievable with preparation and the right deposit. Lenders focus on:

• Time since discharge
• Strength of your deposit
• Recent payment behaviour
• Income stability
• Clean bank statement conduct
• Affordability

The longer the time since bankruptcy, the wider your lender options become. Many borrowers successfully secure mortgages again after rebuilding their financial profile.

This guide provides general information only. For personalised support, regulated mortgage advice is required.