Published 15 January 2018 · Last reviewed 28 January 2020 · Older article — see current rates
A look at Mortgages for discharge bankrupts
Recently bankrupt – mortgage options are shortening
Mortgage Lenders will have their own rules and policies on discharged bankrupts and so I thought I would take a quick look at the Bankruptcy Mortgage Criteria for clients. Since the credit crunch more and more Mortgage Lenders have relaxed their approach with a good number taking a positive view to lend three years after the discharge period. This includes some high street building societies and banks. However, if the discharge period is more recent, the list of Mortgage Lenders is moving in the opposite direction.
It is still possible to obtain a mortgage with a discharge period under 2 years (see table below) and is to the best of my knowledge only available through Mortgage Brokers, who can access Mortgage Lenders who specialist in this area of lending.
Minimum time before discharged bankrupts can apply for a mortgage
Discharged (time lapsed) Minimum deposit
1 day 40%
13 months 35%
24 months 25%
Over 24 months 15% to 20%
For more information on getting a Bankruptcy Mortgage please click here