Bankruptcy mortgages: Getting a mortgage after bankruptcy

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At one point in time, it was almost impossible to secure a mortgage after declaring bankruptcy, but that’s not the case anymore. Of course, it can be more difficult to buy a property if you’ve had credit problems in the past but, with the right preparation and the help of a specialist mortgage broker, you can secure the home of your dreams.

If you’ve been wondering “Can I get a mortgage after bankruptcy?”, we’re here to help! Our brokers are experts in helping our clients to secure bad credit mortgages so, whether you’ve received a CCJ or you’ve previously been bankrupt, we’ll assess your situation and help you find a mortgage product that suits your needs. If you’re shopping around for a property right now or are ready to submit a mortgage application, get in touch with us today and we’ll be more than happy to support you through the process!

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We’ve also put together this guide to answer some of the common questions you might have surrounding applying for a mortgage after bankruptcy. Here, we’ll cover:

Read on to learn more so, when it’s time to submit your bankruptcy mortgage application, you’re properly prepared and know what to expect.

Can I get a mortgage after bankruptcy?

Yes, you can get a mortgage after bankruptcy. Although, just like if you’ve faced other financial struggles like a CCJ or IVA, it can be harder and there will be fewer mortgage products available to you. You should also be aware that some of the biggest lenders won’t accept a mortgage application if you’ve previously been bankrupt, but there are some companies and specialist lenders that will allow you to borrow from them.

If you’ve previously been bankrupt but are looking to buy a property, working with a mortgage broker who specialises in cases like yours will give you the best chance of succeeding. They will have strong relationships with lenders who offer adverse credit mortgages, and they’ll take the time to understand your situation so they can ensure you have everything in order to reduce the risk of your application being rejected.

Here at The Mortgage Genie, our brokers all have bankruptcy mortgage experience, so you can rest assured that they know exactly how to handle cases like yours. This means, if you’re preparing to purchase a property but know that finding a suitable mortgage is going to be tough, we can help! We’ll support you through the entire process, which will give you the best possible chance of securing your dream home.

Can I get a mortgage if I’m still bankrupt?

If you haven’t yet been discharged from your bankruptcy, you won’t be eligible to take out a mortgage. You will need to wait to be discharged, which usually takes around 12 months.

This is because, if you’re bankrupt, you will have declared that you’re unable to pay any of your debts. So, you won’t be able to take on any other credit until this has been resolved. Once you’ve been discharged, you can apply for a mortgage at any time but, if you do so shortly after your bankruptcy, you’ll have to follow very strict guidelines and will need to provide lots of evidence that shows you can afford the repayments. It’s likely you’ll need to pay higher interest rates and provide a larger deposit than usual, too.

Can I get a mortgage after bankruptcy if I have other credit problems?

If you want to secure a mortgage after declaring bankruptcy, lenders will want to see that you’ve stayed out of trouble since. So, they’ll expect you to have a clear credit history from your bankruptcy onwards. As a result, if you have any other credit problems, the majority of lenders won’t accept your application.

If you’re concerned that you may have other credit problems that will make you ineligible for a mortgage, it’s best to talk to a specialist mortgage broker who is an expert in handling cases like yours. They’ll be able to assess your situation and provide you with an accurate idea of where you stand and whether you’ll still be able to take out a mortgage with a specialist lender.

How long after bankruptcy can I get a mortgage?

Once you’ve been discharged from your bankruptcy, you can apply for a mortgage. However, this doesn’t mean your application will be accepted, as lenders will still see you as a high-risk applicant for a while. Essentially, the more recent your bankruptcy is, the harder it will be to get a mortgage. It’s also vital that you consider whether you’re in a position to afford mortgage repayments and the other costs that come with owning a property. The last thing you want to do is fall behind on your mortgage repayments following a bankruptcy, as you’ll find yourself in a worse position.

If you would like to give yourself the best chance of having your mortgage application accepted, and you would like to gain access to more affordable options, it’s best to wait a while until your credit score has improved following your bankruptcy. You can carry out a free credit check (free for 30 days, then £14.99 a month - cancel online any time) to assess your current situation and then work on keeping your record clear so you’re in a better position when you finally submit your mortgage application.

How many years after bankruptcy can you get a mortgage?

Some lenders will consider your mortgage application as soon as you have been discharged from bankruptcy. But, there are others that will prefer at least 12 months to have passed, and some will even want you to wait several years.

After six years, your bankruptcy will no longer appear on your credit file. Although, it is worth noting that lenders will typically ask if you’ve ever been bankrupt — even if it was more than six years ago — during the application process, and you should be honest at this stage. As long as it’s clear you’ve worked on improving your financial position and credit rating since, being bankrupt years ago shouldn’t affect your application too much.

If you would like the best chance of having your mortgage application accepted and you’re hoping to access deals that are as affordable as possible, it could be best to wait until your bankruptcy has fallen off your credit record and you’ve fully recovered. But, we know not everyone is in a position to delay buying a home for so long, and it is still possible to get a mortgage with a bankruptcy on your record.

How does bankruptcy affect a mortgage application?

Because mortgage lenders accept or reject applications based on the level of risk they seem to pose, any previous bankruptcies will affect your mortgage application. So, especially if you’ve been bankrupt in the last six years, you should be prepared for the process to be lengthier and more complicated than if your credit report was pristine.

When applying for a mortgage following bankruptcy, you may find that you need to provide extra proof that you can afford the repayments, and you may also be required to put down a larger house deposit or pay higher interest rates to reduce the level of risk for your lender.

Will I need a larger deposit to apply for a mortgage after bankruptcy?

After you’ve declared bankruptcy, lenders will be hesitant to offer you a mortgage because they’ll be concerned about the level of risk involved.

If you’re able to save up a larger deposit, this will mean you need to borrow less, lowering the risk for your mortgage provider, and increasing your chances of securing the loan you need. Some will even require you to put down a larger deposit for this reason. This is especially common if your bankruptcy was particularly recent.

Will my mortgage interest rate be high after bankruptcy?

Following bankruptcy, when you apply for a mortgage, you’ll usually find the products available to you have higher interest rates. This, again, is because you’ll be considered a high-risk borrower — a higher interest rate is essentially how lenders reward themselves for taking that risk.

Will I always have to pay a higher interest rate on my mortgage following bankruptcy?

While the interest you’ll pay when you first take out your mortgage following bankruptcy may be high, this doesn’t necessarily have to be the case until your loan is paid off. If you always meet your repayments on time, your credit rating will start to improve over time. Then, in a few years, you will be able to remortgage and should have access to more competitive rates in light of your stronger credit score.

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Applying for a mortgage after bankruptcy

As we’ve mentioned, applying for a mortgage after bankruptcy can be more complicated, and there are some steps you’ll want to take to improve your chances of success.

Here, we’ll talk you through some of the main things you can do to put yourself in a more favourable position so lenders will be more likely to approve your application.

Talk to a specialist mortgage broker

Applying for a mortgage can feel overwhelming at the best of times, but previously having declared bankruptcy can make the process a lot more complicated. So, it’s vital that you speak to a specialist mortgage broker who will be able to help you with your application. They will have access to lenders and mortgage products you won’t be able to find on your own, which will give you the best chance of finding a suitable and affordable deal.

A bad credit mortgage broker will also be able to assess your situation and help you to put together the most robust application possible. This will then give you the best chance of securing the property you want.

Consider whether now is the right time

When applying for a mortgage following bankruptcy, timing is everything. Typically, the longer it’s been since you were discharged from your bankruptcy, the more likely a lender will be willing to offer you a mortgage. If your bankruptcy is quite recent, you’ll usually need to meet specific criteria, offer up a larger deposit, and deal with a higher interest rate. If you’re able to wait a few years and keep your credit report clean in that time, you’re likely to gain access to cheaper deals.

Focus on keeping your credit report clear

When you apply for a mortgage following bankruptcy, lenders will want to see that you’ve been able to keep your credit report clear ever since. So, it’s important that you focus on ensuring all of your financial obligations are handled without any delayed or missed payments.

There are also some additional steps you can take to improve your credit rating, which include:

  • Registering to vote
  • Correcting any errors on your file, and looking out for fraudulent activity
  • Making regular payments on time
  • Keeping your credit utilisation low
  • Trying to avoid moving home too often

All of these tactics can help to show that your financial situation has been a lot more stable since your bankruptcy, which will help to put lenders’ minds at ease and increase your chances of securing a mortgage.

Save a larger mortgage deposit

If you can save a larger mortgage deposit, you’ll need to borrow less money, which will pose a smaller risk to your chosen lender. Some lenders will even require you to provide a larger deposit or they won’t accept your application. The more recent your bankruptcy is, the more likely this will be the case.

We know that applying for a mortgage after declaring bankruptcy can seem daunting, but it doesn’t have to be! Here at The Mortgage Genie, we have a team of experts who have lots of experience in helping first-time buyers and existing homeowners purchase their next property, even if they’ve had credit issues in the past. We can also help you to remortgage or purchase a buy-to-let property if you aren’t looking to buy a new home for yourself right now.

If you would like any support with finding the perfect mortgage to suit your needs and handling the application process, we’re here for you! Get in touch with us today — we’re looking forward to discussing your situation and helping you buy your dream home.

Mortgage Details

This information is a guide only and should not be relied on as a recommendation or advice that any particular mortgage is suitable for you. All mortgages are subject to the applicant(s) meeting the eligibility criteria of the specific lender. You should make an appointment to receive mortgage advice which will based on your needs and circumstances.

Company Information

The Mortgage Genie Limited is Registered in England and Wales with Company Number 9803176. The Mortgage Genie Limited is an Appointed Representative of PRIMIS Mortgage Network, a trading name of First Complete Ltd. First Complete Ltd is authorised and regulated by the Financial Conduct Authority. Most Buy-to-Let Mortgages are not regulated by the Financial Conduct Authority. The guidance contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.


Depending on the complexity of your mortgage there may be a fee for our mortgage advice and arrangement service, which will be discussed and agreed before you make a mortgage application. A typical fee is £293 and will never be more than 1% of the mortgage amount.