Remortgaging after sequestration in Scotland can be possible, and much of what matters is similar to bankruptcy elsewhere in the UK: how long ago you were discharged, your mortgage payment record and your equity. Discharge itself often comes after 12 months, or 6 months under the Minimal Asset Process for people with fewer assets and lower debts, but your trustee’s interest in your home and any income contributions can continue well beyond that date.
This page focuses on what happens after discharge specifically. For a general look at sequestration and other Scottish arrangements, see our Scotland page, and for the wider UK picture of bankruptcy and mortgages, see remortgaging after bankruptcy.
On this page
This page covers
In short
- Discharge often comes after 12 months, or 6 months under the Minimal Asset Process.
- Income contributions can continue for up to 4 years from the date of sequestration, even after discharge.
- Your trustee’s interest in your home needs to be dealt with before you can grant a new mortgage over it.
- Sequestration generally stays on your credit file for 6 years from the date it started.
Does the route into sequestration affect how soon you can remortgage?
Sequestration can happen through the standard route or, for people with fewer assets and lower debts, through the Minimal Asset Process (MAP). Discharge under the standard route is often around 12 months from the date of sequestration, while MAP cases are often discharged sooner, around 6 months, if the conditions are met. Neither route removes sequestration from your credit file any faster, since that runs separately from your discharge date.
| Stage | Standard route | Minimal Asset Process |
|---|---|---|
| Usual discharge | Around 12 months | Around 6 months |
| Contributions from income | Can continue for up to 4 years from the date of sequestration | Can continue for up to 4 years from the date of sequestration |
| On your credit file | 6 years from the date of sequestration | 6 years from the date of sequestration |
General patterns, not fixed rules. Check your own case with your trustee, and confirm timings on mygov.scot.
Your trustee’s interest in your home after discharge
Discharge ends your bankruptcy, but it does not automatically deal with your trustee’s interest in your home. Unlike the position in England and Wales, there is no fixed rule that this interest reverts to you after a set number of years just because it is your home. Your trustee generally needs to formally deal with their interest, for example by the trustee’s interest being discharged, transferred, or bought out, before you can grant a new standard security to a lender.
This is worth raising with your trustee well before you approach a lender, since it can affect how quickly a remortgage can complete. A solicitor handling the legal work will usually check this as a matter of course.
If your trustee’s interest in your home has not been resolved, a remortgage cannot complete even if a lender has agreed to it in principle. Confirm the position with your trustee first.
Do ongoing contributions affect what you can afford?
If you were asked to make contributions from your income, these can continue for up to 4 years from the date of sequestration, which is often longer than the discharge period itself. A lender assessing affordability will look at your income after any contributions are deducted, so it is worth being clear with an adviser about when your contributions are due to end.
- Ask your trustee for written confirmation of your contribution end date.
- If contributions have already stopped, keep evidence of when this happened.
- Factor any remaining contributions into what you tell an adviser you can afford.
Checking your credit file and the Register of Insolvencies
Sequestration generally stays on your credit file for 6 years from the date it started, whether or not you were discharged sooner. Separately, your case also appears on the Register of Insolvencies while your trustee is dealing with it, and your entry is normally removed around a year after your trustee finishes managing the case, which is often at least 5 years from the date of sequestration under the standard route, or sooner under MAP.
Get your statutory credit report free from Experian, Equifax and TransUnion and check the sequestration is marked correctly, with the right date, before you apply to remortgage.
What may affect a remortgage after sequestration
| Factor | Why it matters |
|---|---|
| Time since discharge | Choice of lender tends to widen the longer it has been since you were discharged. |
| Route into sequestration | The standard route and the Minimal Asset Process both lead to discharge, but on different timescales. |
| Your trustee’s interest in your home | This needs to be formally dealt with before a new standard security can be granted. |
| Ongoing contributions | Contributions can continue for up to 4 years from the date of sequestration and affect affordability. |
| Mortgage payment history | A clean record since sequestration, particularly on your mortgage, tends to help. |
| Equity and loan to value | A lower LTV generally widens the options available. |
| New credit issues since discharge | Defaults or missed payments after discharge are likely to weigh more heavily than the sequestration itself over time. |
| Income and employment | What you earn now, how it is evidenced and your outgoings once any contributions end. |
These are general points, not lender rules. Each lender sets and changes its own criteria.
Information an adviser may ask for
You don’t need all of this to make an enquiry. It helps to know where to find it, because an adviser is likely to ask about most of it.
- Your date of sequestration and discharge date
- Confirmation from your trustee on whether their interest in your home has been dealt with
- Confirmation of when any income contributions ended, or are due to end
- Credit reports from Experian, Equifax and TransUnion
- Your current mortgage balance, deal end date and any early repayment charges
- Proof of income and a summary of your outgoings
- An estimate of your home’s value
Frequently asked questions
Can I remortgage as soon as I am discharged from sequestration?
Being discharged is one part of the picture, but your trustee’s interest in your home may still need to be dealt with before a lender can register a new mortgage. Check this with your trustee before you get too far into an application.
Does going through the Minimal Asset Process mean I can remortgage sooner?
It can mean an earlier discharge date, often around 6 months rather than 12, but lenders still look at your overall record and equity, not just the route you took into sequestration.
Do I have to keep paying contributions once I am discharged?
You might. Contributions from income can be required for up to 4 years from the date of sequestration, which may run past your discharge date. Ask your trustee for your contribution end date in writing.
How do I check my sequestration has been removed from the Register of Insolvencies?
Your case is normally removed around a year after your trustee finishes managing it. If you are unsure, ask your trustee for confirmation, or check the position on mygov.scot.