How long after bankruptcy until I can get a mortgage?

Buying your own home is exciting. Gaining the independence and freedom to own and manage a property how you like, and eventually have an asset to enjoy in the future, is something many of us aspire to. However, if you have been made bankrupt you might be wondering how long after bankruptcy you will have to wait until you can get a mortgage.

Being accepted for a mortgage can be tough, even with the best credit score, so when it comes to those who have been made bankrupt the journey won’t be a smooth one. However, it can be done.

How long should you wait before applying for a mortgage after bankruptcy?

There’s no set time, but it’s a good idea to wait until your credit rating is back to a reasonable score. This will ensure you can prove you are able to make repayments for credit products on time and in full.

Your bankruptcy will remain listed on your credit report for six years from the date you were made bankrupt. Even when it has been removed some mortgage lenders may still ask if you have been made bankrupt in the past – which you must answer truthfully. This can impact your chances of getting a mortgage and so is something to bear in mind.

How to improve your chances of getting a mortgage after bankruptcy

There’s no way to guarantee a mortgage provider will accept you but you could consider the following actions to improve your chances:

Wait it out

It might be worth waiting until the bankruptcy has been removed from your credit report and you have had time to make an impact on increasing your credit rating. Over time, it will naturally increase but taking on small amounts of credit and paying this off regularly and on time will help improve your rating.

Our in-depth guide explains how to improve your credit rating to help you recover after bankruptcy.

Use a mortgage broker

Brokers have access to all the lenders on the market and can get better deals when dealing with them directly. They also know which lender is more likely to accept your application and will go to these first to avoid any hard credit checks, leaving marks on your report.

Choose a specialist mortgage lender

Certain mortgage lenders specialise in lending to those with low credit ratings or poor credit history. We’ve looked into which ones are likely to lend to you after a debt solution in our guide on DMPs and mortgages – click here to read this.

Offer a larger deposit

It’s unlikely you will be able to obtain a 95% or even 90% mortgage anytime soon after your bankruptcy has ended – which is why it’s a good idea to offer a bigger deposit.

However, this is easier said than done when you have been made bankrupt in the past, so you will discover that time and patience is key to obtaining a mortgage. The table below shows the suggested deposit amounts and the likely loan to value ratio you can expect to be offered after bankruptcy:

How many years after discharge from bankruptcy

Can I get a mortgage?

Amount of deposit likely needed

0 years

Very unlikely

It’s unlikely you will be able to get a mortgage.

1 year

Unlikely

You would need a minimum 40% deposit to be considered for a 60% mortgage.

2 years

Potentially

A minimum 25% deposit would be needed for your application to be considered. Your mortgage would be 75% loan to value.

3 years

Potentially

A minimum 25% deposit would be needed for your application to be considered.

4 years

Likely

You could be accepted for a mortgage with a 15% deposit. Your mortgage would be 85% loan to value.

5 years

Very likely

A 10% deposit could see your application accepted. You’d enjoy a standard mortgage of 90% loan to value.

6 years

Very likely

You could get a mortgage with a 10% deposit or even 5% with some lenders.

6+ years

Very likely

The potential to obtain a mortgage with a 5% deposit is greater but a 10% deposit is best.


These are only estimates, so it’s worth speaking to a mortgage broker about what you can expect when making a mortgage application after a certain period of time after bankruptcy. However, it does indicate the longer you wait, the more likely it is you will be accepted with a lower deposit.

Expect to pay higher interest rates

If you’ve considered the above points and are applying for a mortgage, it’s a good idea to expect to still pay a higher interest rate at first. This is because lenders may still consider you to be a risk and will want to receive a higher return on what they have loaned you to protect themselves.

If you are considering applying for a mortgage after bankruptcy, it’s a good idea to seek free, impartial financial advice. Our experts here at PayPlan can help with this and can be reached by phone on 0800 280 2816 or via the contact form on the website.