Is it Possible to Find a Mortgage After Bankruptcy?

Bankruptcy can be a big blow to your finances. Here we discuss what happens when you apply for a mortgage after bankruptcy and how to move forward afresh when your finances are back in good standing.

About your mortgage

Error: Yearly income income must be between £1 and £10,000,000.

Error: Regular bonus must be between £1 and £10,000,000.

Based on your yearly income, you may be able to borrow:

£0

Most lenders will let you borrow 4.5 times your annual salary so, as long as you have a standard 10% deposit, you should be able to borrow this much.

£0

Depending on your personal circumstances, some lenders may let you borrow 5 times your salary.

£0

Lenders usually cap the amount they lend at 5.5 times your salary, so it’s unlikely you’ll be able to borrow more than this.

This calculator is an estimation of how much you could borrow. If you’re ready to take out a mortgage, speak to a Revolution brokers to see what options are available.

Is it Possible to Find a Mortgage After Bankruptcy?

With the growth of the bad credit-lending sector, it is far less impossible to find a mortgage following bankruptcy now than ever before. However, this is a specialist situation, and so we strongly advise consulting an independent broker to manage the process for you.

Bankruptcy is a serious position, and therefore it is vital to apply to the right lenders and have a broker to negotiate the terms on your behalf.

If you're looking to apply for a mortgage following bankruptcy, give the mortgage brokers team a call on 0330 304 3040 or email us at info@revolutionbrokers.co.uk.

Can I Apply for a Mortgage After Having Been Declared Bankrupt?

You can, yes. You will almost certainly need to apply to a niche lender, as the vast majority of high street banks will automatically reject any applicant with a bankruptcy history.

The application will need to wait until the bankruptcy has been discharged, usually taking around a year. If you can build up a few months or years of positive credit management since the discharge date, you will have a better chance of approval.

Any bankruptcy mortgage will tend to charge higher interest rates than for a person with a clean credit file. However, after four or five years, if your financial conduct is excellent, you can usually borrow a mortgage with a 5-10% deposit on similar terms to any other borrower.

If the bankruptcy were discharged within the last two years, you would need a higher deposit of at least 25%.

The below table provides an indication of the likelihood of finding a mortgage, depending on how long ago it was discharged:

Registration Date

Discharge Date

Eligibility for a mortgage

Deposit requirements

Within one year

0 years

Not eligible.

N/A

One year ago

0 years

Potentially

40%+

Two years ago

One year

Potentially

25%+

Three years ago

Two years

Potentially

25%+

Four years ago

Three years

Probably

15%+

Five years ago

Four years

Very likely

10%+

Six years ago

Five years

Very likely

5%+

Over six years ago

Six+ years

Very likely

5%+

Where Can I Get a Mortgage After Bankruptcy?

There are around 20 lenders in the UK who offer mortgages to applicants with a discharged bankruptcy. A lot depends on how many years have passed and whether you have any additional credit issues to consider.

To improve your chances of approval, you should:

  • Obtain a copy of your credit file from all three major bureaus - Equifax, Experian and TransUnion. You should check all the details are accurate and query any errors before applying for your mortgage.
  • Consult a broker to determine which lenders you would be eligible to apply to.
  • Work on improving your credit score and building up a positive credit history. That could include registering to vote, using a credit builder facility, not applying for unnecessary borrowing, and paying all your bills on time.

How Does the National Hunter Database Impact my Mortgage Eligibility?

The National Hunter Database includes everybody who has been made bankrupt in the UK, including discharged bankruptcies.

This report isn't something lenders will rely on for credit scoring, although they will run your name through when considering the full application process.

That means that, even if the bankruptcy were discharged over six years ago and no longer appears on your credit file, you would still need to declare this since it will be identified through the database.

What Happens if I Have a Bankruptcy and Other Credit Issues?

Much depends on when. If you had credit issues and became bankrupt but have been responsible since you can usually find a mortgage with a specialist lender.

Having more bad credit problems after bankruptcy is a red flag and can make it extremely difficult to find a mortgage.

Why Revolution Brokers?
  • Whole of market brokers

  • Mortgage that suits you

  • On time customer support

FAQs

How does our broker-matching service work?

Possibly, yes. Usually, you will need it to have been discharged three years ago and have a good credit report since then.

Most lenders will require at least a 15% deposit and will need you to meet personal income thresholds and demonstrate that you already own another property.

Yes, you can. This type of financing can annul your bankruptcy and revert your credit report to before it was registered. It can be tricky to find a remortgage lender, as they will need to take a close look at affordability to consider the application.

However, a whole-of-market broker can facilitate the borrowing, allowing you to repay your debts and clear the bankruptcy from your credit file.

Not always, no. Some properties are repossessed if the mortgage is in default, which is part of the bankruptcy proceedings.

You can usually avoid repossession if you have other family members living with you, are in negative equity, or sell a proportion of your property.

There are also repossession recuse mortgages available and a few other alternatives to avoid losing your home.

If you are declared bankrupt, the lender won't cancel your mortgage, and you will usually have to keep up with the repayments.

It might feel that you won't ever be able to get a mortgage after bankruptcy - but there are several options on the table.

Give Revolution a call on 0330 304 3040 or email us at info@revolutionbrokers.co.uk. We'll run through all the solutions with you to ensure you can find competitive borrowing and help get your finances back on track.

Further Reading

Latest Blogs

11 Mar 2022
Guide to Remortgaging to Finance a Home Renovation

Remortgaging your home is a great way to release equity and raise finance for those home improvement jobs you've always wanted to do. Before applying, it's vital to work out how much equity you have in your property and ensure sufficient capacity to borrow the funds required for the renovation you have in mind. In today's article, t..

10 Feb 2022
Do I Qualify for First-Time Buyer Status?

Do I Qualify for First-Time Buyer Status? Working out whether or not you are a first time buyer may seem obvious - but there are plenty of scenarios where your position isn't clear! Examples might include: New buyers who have inherited a property they rent out. Buy-to-let investors that have never purchased a residential hom..

26 Jan 2022
How Does a Remortgage Application Work?

Most homeowners know that remortgaging means switching a mortgage from an existing lender over to a new deal. However, the process isn't always obvious. If you're on a fixed-rate deal, you'll want to get ahead of the end of the term to avoid being shuffled onto a higher standard variable rate where your interest costs will undoubtedly ..

17 Dec 2021
Understanding Lender Risk on First-Time Buyer Mortgages

Finding a great mortgage as a first time buyer can feel like an uphill struggle, with a larger proportion of applicants being turned down than a year ago. Around 20% of first-time mortgage applicants are rejected, usually because of the lender risk associated with their loan. Today, Revolution Brokers explains the highest risk facto..

28 Oct 2021
Pros and Cons of First Time Buyer Buy to Let Mortgages

Investing in a rental property can be an excellent way to get onto the property ladder and earn an income. However, if you haven't owned a residence before, you might find that a mainstream bank will automatically turn you down for a buy to let mortgage. In today's guide, the Revolution Brokers team explains how you can become a ren..

12 Oct 2021
Mortgage Deposit Requirements for First-Time Buyers

Buying a home for the first time is a massive step - but the deposit is often a stumbling block for first-time buyers. It can take years to save a sufficient amount or be impossible, so there are several ways to approach the problem and get your foot onto the property ladder. From April 2021, the UK government launched the new mortg..

Offer!

Refer, Relax and get £50

If you refer a friend for a mortgage or any
type of finance you’ll both receive £25
each when their new application
successfully completes.

Know More!

We are proud
members of the:

FCA disclaimer

The content included in our articles, blogs, web pages and news publications is based on information accurate at the time of writing. Note that policies and criteria can change regularly throughout the UK mortgage lending market, and it remains essential to contact the consultation team to receive up to date guidance. The information included on the Revolution Brokers site is not bespoke to any circumstances or individual application scenarios and therefore is not intended to be used as financial advice. The content we share is designed to be informative and helpful but cannot be relied upon to provide individual advice relevant to your mortgage requirements. All Revolution team members are fully qualified, trained and experienced to provide mortgage advice of an independent nature. We collaborate with lenders and providers who are regulated, authorised and registered with the Financial Conduct Authority (FCA). Should you require specific mortgage borrowing types, some products such as buy to let mortgages may not be FCA regulated. The Revolution team can provide further information about regulated and unregulated lending as required. Please remember that a mortgage is a debt which is secured against your home or property. Your home can be at risk of repossession if you do not keep up with the repayments or encounter any other difficulties in managing your mortgage borrowing responsibly. This also applies to any remortgage or home loan secured against your property, including equity release products.

Ask the Mortgage Experts

Revolution Brokers understands that mortgages can be complex and confusing!

Ask us any question you might have, and one of our skilled consultants will come back to you as quickly as possible.