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Discharged from Bankruptcy? We can help.
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Minimum 20% deposit required
Only a 20% is required if you have been discharged for over 3 years. 25% or 20% deposit is required if less than 3 years.
We can help from 6 months.
You can apply for a mortgage from 6 months of your discharge. You would need to delay completion until you have been discharged 12 months
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Assess your credit report
It is important to have an up-to-date credit report to assess the impact of your Bankruptcy. We recommend using a 30-day free trial with checkmyfile.
In this guide:
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Can you get a mortgage after a bankruptcy
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How long do I have to wait after a bankruptcy?
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How much deposit do I need?
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Credit blips after your bankruptcy?
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How do I increase my chances of a mortgage?
Can you get a mortgage after a bankruptcy?
You can get a mortgage after being bankrupt but it is more complex. Not every lender will accept bankruptcy in the last 6 years, which makes it a difficult task searching for the right one.
As bankruptcy is considered a major credit issue, lenders will only offer mortgage products with higher interest rates, but this will depend on how long you have been discharged for.
You should always declare you have been bankrupt, even if it was over 6 years ago. This is because it is a logged on the national hunter database, and lenders will likely check this at underwriting stage. Being upfront about credit issues to your mortgage broker and lender is always the best strategy, as it will save you time, money and effort.
How long do I have to wait after a bankruptcy?
You can only apply for the mortgage once you have been discharged, this is usually 12 months. Some lenders will consider mortgage applications as soon as you have been discharged so this shouldn’t stop from getting a mortgage.
Therefore, when discharged, in theory you can apply for a mortgage immediately. However, the interest rate being offered will be much higher than market leading interest rate.
How much deposit do I need?
The deposit amount is usually the main issue for ex-bankrupts seeking a mortgage. Mortgage lenders perceive people discharged from bankruptcy as higher risk, therefore, they will require a larger deposit. However, due to the bankruptcy, a large deposit is often not available. Please see the typical deposit amounts below:
Less than 1 year since discharge - 15% deposit is required
Between 1 and 3 years since discharge - 15% deposit is required
Between 3 and 6 years since discharge - 10% deposit is required
Over 6 years since discharge - 5% deposit is required
Credit blips after your bankruptcy?
Likely mortgage providers will want to see a clean credit history since being discharged. However, this is not a necessity.
Several of lenders will allow credit blips after you have been discharged from the bankruptcy.
How do I increase my chances of a mortgage?
To increase your chances of getting a mortgage, talk to mortgage specialists, who understand the market and will be able to match you with the right lender. Additionally, usually lenders will only offer these products through brokers.