Bankruptcy is considered one of the more severe forms of bad credit and historically it was near impossible to secure a mortgage if you had a history with it. Times have changed and there are lenders out there willing to help now. However, due to the severity of bankruptcy we strongly advise that you seek the help of a professional like one of our bad credit superheroes. They have years of experience dealing with bankruptcies so you are in the right hands.
You have probably been told that it is not possible to secure a mortgage after bankruptcy, but there is a small pool of mortgage providers out there who will consider your application.
Any bad credit can be an issue so it is important that you meet as much of the lender’s eligibility criteria as possible so they can view your case in the best light. You could potentially take out a residential or buy to let mortgage, a second charge loan or even a bad credit remortgage with a history of bankruptcy.
You will not be able to apply for a mortgage if you have not been discharged from your bankruptcy. This process can usually take a year but could be different based on the court’s decision. Once discharged, the exact time that you can apply for a mortgage will change from lender to lender as it will take a while for you to build up your creditworthiness again.
Some mortgage providers could offer you a mortgage straight after discharge but you will need to meet their other eligibility checks and have a sizeable deposit. It is likely you would be charged a premium on interest rates as you are still a big risk to the lender.
A history of bankruptcy automatically makes you a greater risk to mortgage lenders. So, you will likely receive higher rates than those with a clean credit report.
The better news is that the longer that you have been discharged the more choice you will have from the mortgage market and you may be offered competitive rates and higher loan to value ratios. If your bankruptcy was discharged 4-5 years ago and you have maintained an excellent credit history since you could secure a mortgage with a deposit of around 5-10%.
But if you have been discharged within the last 0-2 years you may need to raise a larger deposit. We have provided a table below to show some scenarios to expect based on the age of your bankruptcy discharge.
| When the bankruptcy was registered | Years discharged | Deposit required | Eligible? |
| Recent bankruptcy | 0 years | NA | No |
| 1 year | 0 years | 40% | Potentially |
| 2 years ago | 1 year | 25% | Potentially |
| 3 years ago | 2 years | 20% | Potentially |
| 4 years ago | 3 years | 15% (with some chances of 5%) | Likely |
| 5 years ago | 4 years | 10% (with some chances of 5%) | Very likely |
| 6 years ago | 5 years | 5% | Very likely |
| Over 6 years | 6+ years | 5% | Very likely |
Lending policies change frequently so do not rely on the scenarios outlined above. The only way to know what you could be accepted for is to seek independent advice from a bad credit specialist. We have the right advisors for the job so follow the links to contact us and let our superheroes get you on the way to securing a mortgage after bankruptcy.
Mortgage lenders willing to support a mortgage after bankruptcy include Accord mortgages, Metro bank, Kent Reliance and Vida Homeloans. There are even some high street lenders out there like Santander and Halifax who will overlook the bankruptcy if it has been over 4 years since discharge, subject to their other eligibility assessments of course.
We love assisting clients, especially those who have had difficulty finding the best deals elsewhere.
I applied for a mortgage from another organization after seeing an excellent offer online, but my application was declined due to my credit history. I am grateful to MoneyNest for connecting me with their broker, who discovered out what the problem was and now I am a client of theirs 🙂
I had a bad credit history and didn’t know how to apply for a mortgage. The superhero advisors from MoneyNest came into my life when they matched me with an agent who found the perfect lender willing to take on such risk, giving us both hope that there are still opportunities out here!
Make an enquiry for a free, no-obligation chat and we’ll match you with a broker experienced in helping other customers in similar circumstances
The table below indicates rates based on a mortgage amount of £150,000 over 30 years. It is best to seek advice from the superheroes to find a deal for your circumstances as these rates are an indication only and will be subject to change.
If your credit issues are holding you back, our credit expert hero’s are here to set you free!
There are a few steps that you need to take to get a mortgage after bankruptcy. First of all, it is crucial that you download and check your credit reports from the 3 major credit reference agencies, Equifax, Experian and TransUnion. It is key you check all three to make sure your information is correct. Often, we see discrepancies as to when your bankruptcy was registered across all three. Lenders will not approve your application if the dates of discharge do not add up as it may show outstanding debts after the discharge. The credit reference agencies will need to update your records accordingly which could take up to 3 months to process.
Next you need to check your eligibility and the most seamless way to do this would be with a specialist. Our superheroes can guide you to the right mortgage but they will also know if a mortgage is unlikely too. If you do not qualify right now they can guide you to improving your chances with a plan to build your credit.
If you do not qualify straight away you may need to get your credit score in better shape. Some actions to take away would be:
