Remortgaging after bankruptcy is often possible once you have been discharged, but it depends on how long ago the bankruptcy was, what has happened to the trustee’s interest in your home and how your credit has looked since. Very few lenders will consider someone who is still undischarged. As time passes and your record stays clean, more options may open up. Nobody can promise an outcome, but a bankruptcy in your past does not automatically rule out a remortgage.
Bankruptcy is different from most credit problems because it can affect who owns your home, not just your credit file. Below we cover the timeline, the position in Scotland and what lenders look at. If you went through an IVA instead, see remortgaging after an IVA.
On this page
In short
- Most lenders will only consider you once you are discharged, usually after 12 months in England and Wales.
- Bankruptcy stays on your credit file for 6 years from the bankruptcy date, not the discharge date.
- Your interest in your home passes to the trustee and may need dealing with first.
- More time since discharge, with a clean record since, tends to widen the options.
Can you remortgage while you are still bankrupt?
In practice, very rarely. While you are undischarged, the trustee holds your interest in your home and you are under legal restrictions on borrowing, including having to tell a lender about the bankruptcy before borrowing above a set amount. Most lenders will not consider an application at this stage.
In England and Wales, bankruptcy usually ends automatically after 12 months, although discharge can be suspended, for example where someone has not co-operated with the Official Receiver. Once you are discharged most restrictions lift, but the bankruptcy stays on your credit file for longer.
If you received a bankruptcy restrictions order or undertaking, some restrictions, including telling lenders about your status before borrowing, continue after discharge for the period it sets. Mention this to an adviser at the start.
What happens to your home when you go bankrupt?
When a bankruptcy order is made, your beneficial interest in your home passes to the trustee, often the Official Receiver at first. If you own the property jointly, only your share passes. Equity in a home is often the largest asset available to creditors.
The trustee can deal with that interest in several ways, such as selling the property, selling the interest back to you or a family member, or applying to the court for a charge over the home. Where there is little equity, the trustee may not pursue it.
The 3-year rule
Under section 283A of the Insolvency Act 1986, if the trustee has not dealt with your interest in your home within 3 years of the bankruptcy date, it can revert to you. There are exceptions, so if you are relying on this, ask the trustee to confirm the position in writing.
After discharge, some people remortgage to buy out the trustee’s interest so the home stays with them. The trustee, lender and solicitors all need to agree the figures, and any bankruptcy entry on the Land Registry title must be dealt with.
How long after bankruptcy can you remortgage?
Lenders set their own criteria, so there is no single answer. What is fixed is the credit file timeline: the bankruptcy is recorded for 6 years from the date of the order, and discharge does not shorten this.
| Point in time | What happens | What it can mean for a remortgage |
|---|---|---|
| Bankruptcy order | Your interest in your home passes to the trustee. The bankruptcy is recorded on your credit file and the Individual Insolvency Register. | Remortgaging is very rarely possible at this stage. |
| Around 12 months | Automatic discharge in most cases. Most restrictions end. | Some specialist lenders may consider you, often where there is substantial equity. |
| 3 years | If the trustee has not dealt with your interest in your home, it can revert to you, subject to exceptions. | Clarity over ownership can make a remortgage more straightforward. |
| 6 years | The bankruptcy drops off your credit file. | More lenders may consider you, although some application forms ask whether you have ever been bankrupt. |
The first two columns describe the legal and credit file position. The third is general information only: lenders set their own criteria.
Between these points, a clean record helps. Keep every payment up to date, stay on the electoral register and avoid new defaults or county court judgments.
What do lenders look at after a discharged bankruptcy?
- Time since discharge. The longer ago it was, the more lenders may consider your case.
- Your record since. New arrears or missed payments after discharge are often viewed more seriously than the bankruptcy itself.
- Equity. A lower loan-to-value can make a real difference, as our guide on how LTV affects a bad credit remortgage explains.
- Title. The lender’s solicitor will check the Land Registry title, and any entry relating to the bankruptcy will need resolving.
- Affordability. Income and outgoings are assessed and stress tested, as for any remortgage.
If there are other entries on your file too, such as mortgage arrears, an adviser will look at the full picture. Our guide to what counts as adverse credit explains how different entries are viewed.
Sequestration in Scotland and bankruptcy in Northern Ireland
In Scotland, bankruptcy is called sequestration and is governed by separate legislation. Discharge is usually after 12 months, and there are specific rules on how a trustee deals with the family home, so check your position with your trustee or a Scottish solicitor.
Northern Ireland has its own insolvency legislation, broadly similar to England and Wales. Across the UK, the credit file record normally lasts 6 years.
Where to get free help and information
If you are still dealing with debts, or are unsure what the trustee intends to do with your home, free and impartial help is available from MoneyHelper, StepChange and National Debtline. GOV.UK has official guidance on bankruptcy.
A remortgage is not the only route. If you are not borrowing more, a product transfer with your current lender may be simpler.
What may affect your remortgage options
These are the things that most often shape what may be possible after bankruptcy.
| Factor | Why it matters |
|---|---|
| Time since the bankruptcy | The bankruptcy stays on your file for 6 years from the order date. The further you are from that date, and from discharge, the more options there may be. |
| Discharge status | Being discharged is usually the minimum starting point. Have proof ready, such as a certificate of discharge or confirmation from the Official Receiver. |
| Amount of debt in the bankruptcy | Lenders may ask about the debts included. A bankruptcy linked to large sums or a business failure may raise more questions than one caused by a single event such as illness. |
| Other credit issues | Defaults, CCJs or missed payments from before the bankruptcy often sit alongside it. Any new problems since discharge tend to matter more. |
| Mortgage payment history | Keeping up your mortgage through the bankruptcy helps. Arrears on the mortgage itself are looked at closely. |
| Property value | A current valuation shows the equity, which also sets the value of the trustee’s interest if it has not been dealt with. |
| Outstanding mortgage balance | What you owe now, plus anything needed to buy out the trustee’s interest, sets the size of the new loan. |
| Loan-to-value and equity | A lower LTV can widen options after bankruptcy, because the lender is taking less risk. |
| Income and affordability | Lenders assess income and committed outgoings and stress test the payments. Stable income since discharge helps. |
| Employment type | If your bankruptcy followed a business failure, expect questions about your current work. See self-employed remortgages with bad credit. |
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.
- The date of your bankruptcy order and your discharge date
- Proof of discharge, such as a certificate of discharge or a letter from the Official Receiver
- Whether a bankruptcy restrictions order or undertaking was made
- What happened to your interest in the home, with any letters from the trustee
- Your credit reports from Experian, Equifax and TransUnion
- Details of your current mortgage, balance and payment history
- An estimate of your property’s value
- Proof of income, such as payslips, or accounts and tax calculations
Specific bankruptcy situations
More detail for particular circumstances.
Remortgaging when your bankruptcy was over 6 years ago
What actually changes once a bankruptcy drops off your credit file after 6 years, and why some application forms still ask about it regardless.
Remortgaging once you have been discharged from bankruptcy
What discharge actually changes, what may still need resolving with your home and its title, and what a lender tends to check once bankruptcy restrictions have ended.
Remortgaging when your bankruptcy was over 3 years ago
What the 3-year rule under the Insolvency Act means for your home, how to confirm your position, and what tends to widen your remortgage options at this stage.
Remortgaging when your partner has been bankrupt
How a partner’s bankruptcy shows up through financial associations, what happens to their share of a jointly owned home, and what a joint remortgage may involve.
Remortgaging in the first year after your bankruptcy is discharged
What tends to be possible in the first year after discharge, why choice is narrowest at this stage, and what can help while you wait for more options to open up.
Remortgaging with a bankruptcy restrictions order or undertaking
What a bankruptcy restrictions order or undertaking is, how long it can last, what continues after discharge, and what it may mean for a remortgage.
Remortgaging while you are still undischarged from bankruptcy
Why a remortgage is very rarely possible while you remain undischarged, the £500 disclosure duty, and what to do instead until discharge.
Frequently asked questions
Do I have to tell a lender about a bankruptcy that is more than 6 years old?
After 6 years the bankruptcy drops off your credit file, but some lenders ask whether you have ever been declared bankrupt, and you must answer honestly. Giving false information can lead to an offer being withdrawn, even after it has been made. An adviser can help you find lenders whose questions and criteria fit your history.
Can the trustee still sell my home after I am discharged?
Discharge ends most restrictions, but it does not return your home. Your interest stays with the trustee until it is dealt with, or until it reverts to you under the 3-year rule where that applies. Until then the trustee may still seek to sell or charge the property. If you are unsure, ask the trustee and consider free advice from National Debtline.
Can I remortgage to buy out the trustee’s interest in my home?
Sometimes. Where the trustee is willing to sell your share back, a remortgage can raise the money, provided a lender will consider you. The figure is agreed with the trustee, usually based on your share of the equity. While you are undischarged most lenders will not lend, so some people use help from family instead.
Does my partner’s credit file show my bankruptcy?
Your bankruptcy is recorded on your own file, not your partner’s. But if you have a joint mortgage or joint account, you are financially linked, and a lender checking your partner’s file may look at yours too. If you no longer share any finances, your partner can ask the agencies to remove the link. Our page on remortgaging with a low credit score explains financial associations.
Will rates be higher after bankruptcy?
Rates for people with adverse credit are often higher than high-street rates, and a bankruptcy within the last few years can narrow the range of deals available. The gap tends to shrink as time passes and your file improves. No one can tell you your rate without looking at your full circumstances.
Is bankruptcy treated differently from an IVA when remortgaging?
Both are formal insolvency and both stay on your credit file for 6 years. The key difference for homeowners is ownership. In bankruptcy your interest in the home passes to the trustee, while in an IVA it stays with you, although many IVAs include a clause about releasing equity. Our page on remortgaging after an IVA covers that situation in detail.