Can You Get a Mortgage After Bankruptcy Discharge? Here’s What You Need to Know
If you’ve been through bankruptcy and are now discharged, you might be wondering if getting a mortgage is even possible. We get it – it can feel overwhelming, but it’s absolutely possible with the right plan, preparation, and support.
At Mortgage Bridge, we help people in complex situations like this every day, so let’s break it down clearly so you know what to expect.
What Does Being Discharged from Bankruptcy Mean When Applying for a Mortgage?
Once you’re discharged from bankruptcy, you’re no longer responsible for repaying debts included in the bankruptcy order. But your bankruptcy will still show on your credit file for six years, and lenders will see it when you apply.
This doesn’t mean you can’t get a mortgage. Some high-street lenders may say no, but there are specialist lenders out there who will consider mortgages for discharged bankrupt applicants if you’ve shown you’re managing your money well since.
How Long After Bankruptcy Can I Apply for a Mortgage?
This is a question we get all the time. Here’s what you need to know:
- Straight after discharge – It’s unlikely you’ll get a mortgage immediately.
- 1–3 years after discharge – Some specialist lenders might consider you, but you’ll likely need a bigger deposit.
- 3–6 years after discharge – More lenders will consider you if your credit is clean since discharge.
- 6+ years after discharge – Your bankruptcy will drop off your credit file, and you’ll have a wider choice of lenders if your credit has stayed clean.
The longer it’s been since your discharge, the better your chances, especially if you’ve been rebuilding your credit and managing your finances well.
How Much Deposit Do I Need for a Mortgage After Bankruptcy?
One of the first things people ask us is, “How much deposit will I need after bankruptcy?”
The short answer is: you’ll likely need a bigger deposit than someone without a bankruptcy history.
Expect to need 15–25%, depending on:
- How long it’s been since your discharge
- Your current credit situation
- Your income and overall financial picture
If you’re closer to your discharge date, aim for the higher end of this range. A bigger deposit shows lenders you’re committed and helps reduce their risk, which can help you access better rates.
If you’re using a gifted deposit from family, that’s usually fine, but it will need to be declared as a gift, not a loan.
What Mortgage Rates Can I Expect After Bankruptcy?
It’s realistic to expect mortgage rates for discharged bankrupts to be higher than standard rates, at least to start with. Rates will depend on:
- How long it’s been since your discharge
- Your deposit size
- Your income stability
- Your current credit history
As time passes and your credit continues to improve, you’ll often be able to remortgage later onto a better rate.
How Do Lenders Look at Mortgage Applications After Bankruptcy?
When you apply for a mortgage after bankruptcy discharge, lenders will look at:
✅ How long it’s been since your discharge
✅ The size of your deposit
✅ Your current credit file (they’ll want to see you haven’t had any new issues)
✅ Your income and affordability
They may also want you to explain what led to your bankruptcy and how your situation has changed since.
How Can I Rebuild My Credit to Get a Mortgage After Bankruptcy?
If you’re serious about getting a mortgage after bankruptcy, working on your credit is a must. Here’s what we often recommend to our clients:
- Check your credit reports for errors and get them fixed
- Make sure debts from your bankruptcy show as satisfied
- Register on the electoral roll at your current address
- Avoid taking out unnecessary new credit
- Use a credit builder card carefully and pay it off in full
- Keep up with all bills and commitments
These steps can help you rebuild your credit and give lenders confidence that you can manage your finances responsibly.
Can I Get a Mortgage with Bad Credit and a Bankruptcy History?
Yes, it’s possible to get a mortgage even if you’ve got a bad credit history alongside a bankruptcy. It will be trickier, and you’ll likely need:
- A bigger deposit
- A stable income
- The right lender
This is where working with us at Mortgage Bridge can help. We know which specialist lenders are open to looking at your case and how to position your application to give you the best shot.
What Income Checks Do Lenders Do After Bankruptcy?
Lenders will need to see that you can afford the repayments on the mortgage you’re applying for. If you’re employed, that means your payslips. If you’re self-employed, a contractor, or a company director, they’ll often need:
- Your tax calculations and overviews
- Company accounts
- Evidence of your income, including day rates for contractors
We work with many clients with complex income, so if this is you, don’t worry – we can help you get prepared.
Do I Need to Explain My Bankruptcy When Applying for a Mortgage?
Most lenders will want you to explain what happened and how your circumstances have changed. Being upfront is important. They’re looking to see that the issues that led to your bankruptcy are in the past and that you’re now in a stable financial position.
Should I Use a Mortgage Broker to Get a Mortgage After Bankruptcy?
Using a mortgage broker for discharged bankrupt applicants can save you time, stress, and money. At Mortgage Bridge, we:
✅ Know which lenders will consider your application
✅ Understand deposit and income requirements for your situation
✅ Present your case in the best possible light
✅ Guide you through the process from start to finish
We work with lenders who don’t deal directly with the public, giving you access to more options.
What Should I Do If My Mortgage Application Is Declined After Bankruptcy?
If your application is declined, it’s important not to panic. Instead:
- Find out why it was declined
- Avoid making lots of new applications
- Work on the areas that need improving, whether that’s your credit file, deposit size, or income evidence
We can help you understand what went wrong and put a plan in place to get you mortgage-ready.
Frequently Asked Questions About Mortgages After Bankruptcy Discharge
Can I buy a house after bankruptcy discharge?
Yes, with the right deposit, preparation, and lender, it’s possible.
How much deposit will I need?
Aim for 15–25%, depending on your circumstances.
Are there lenders who will consider me after bankruptcy?
Yes, many specialist lenders will, especially if your credit has been clear since discharge.
What’s Next If You Want a Mortgage After Bankruptcy Discharge?
Getting a mortgage after bankruptcy is achievable with the right approach:
✅ Check and improve your credit
✅ Save as big a deposit as you can
✅ Avoid new credit issues
✅ Get professional help to find the right lender
At Mortgage Bridge, we help people in complex situations, including those looking for a mortgage after bankruptcy discharge. We’ll guide you step-by-step so you can move forward with confidence.
Ready to See What’s Possible?
If you’re thinking about getting a mortgage after bankruptcy, get in touch with us at Mortgage Bridge today. We’ll talk you through your options, check your eligibility, and help you take the next step.
As a mortgage is secured against your property, it could be repossessed if you do not keep up with repayments.