Three years after a bankruptcy order is a meaningful point for homeowners specifically. Under section 283A of the Insolvency Act 1986, if the trustee has not dealt with your interest in your home by then, it can revert to you automatically, subject to some exceptions. Alongside this, more lenders tend to consider an application the further you are from your bankruptcy, provided your record since has stayed clean.
This page looks at what the 3-year rule means in practice and what tends to change around this point. The bankruptcy itself still shows on your credit file until 6 years from the order date. See our page on bankruptcy over 6 years ago for what happens once it drops off.
On this page
This page covers
- Credit issue
- BankruptcyUsually stays on your credit file for 6 years from the bankruptcy date.
- When it happened
- More than 3 years agoOlder issues usually have less influence, especially when your credit since then is clean.
Read the main guide: Remortgaging after bankruptcy: what may be possible and when
In short
- Under section 283A of the Insolvency Act 1986, an unresolved trustee interest can revert to you after 3 years, with exceptions.
- This does not happen automatically in every case, so get the position confirmed in writing.
- The bankruptcy still shows on your credit file until 6 years from the order date.
- More lenders often consider an application at this stage if your record since has been clean.
What is the 3-year rule?
Under section 283A of the Insolvency Act 1986, if the trustee has not taken steps to deal with your interest in your home within 3 years of the bankruptcy order, that interest can revert to you. This exists because trustees are expected to deal with a bankrupt’s home within a reasonable time rather than leave the position unresolved indefinitely.
The 3-year period can be extended by a court order, or by the trustee registering a restriction or notice before it expires. It also depends on the specific facts of your case. Never assume the interest has reverted without written confirmation.
How do you find out whether your home has reverted to you?
- Write to the trustee, or the Official Receiver if no other trustee was appointed, and ask them to confirm in writing whether your interest has reverted, been sold, or is still held by the trustee.
- Check the property’s title register for any bankruptcy restriction or notice, and how old it is.
- If the trustee registered a restriction before the 3 years expired, the interest may not have reverted. Ask a solicitor to check the timing.
- Keep a copy of whatever the trustee confirms; a lender’s solicitor will want to see it.
Once you have this confirmation, your solicitor can apply to clear the entry on the property title as part of the remortgage.
Does being 3 years on change what lenders will consider?
There is no rule that says lenders open up exactly at the 3-year mark, but in practice it is often a turning point. It usually coincides with a clearer position on your home, and 3 years is enough time for lenders to see a track record since discharge.
| Factor | Why it matters here |
|---|---|
| Confirmed position on the trustee’s interest | Clears the way for a lender’s solicitor to proceed. |
| Record since discharge | Roughly 2 to 3 years of clean payments gives lenders a meaningful track record. |
| Loan to value | Equity built up since the bankruptcy can widen the choice of lenders. |
| Remaining time on file | The bankruptcy still shows for up to 3 more years, so some lenders may still be cautious. |
What if other credit issues followed the bankruptcy?
If you had further problems in the years after your bankruptcy order, such as defaults or missed payments, these are assessed on their own timelines and can matter more to a lender at this stage than the bankruptcy itself. An adviser will look at your whole file, not just the bankruptcy.
If you are self-employed and your bankruptcy followed a business difficulty, lenders will usually want to see accounts or tax calculations covering the period since. See self-employed remortgages with bad credit.
Is a remortgage the only option at this stage?
Not always. If your current deal has ended and you are not looking to borrow more, a product transfer with your existing lender can sometimes be simpler than moving to a new lender, particularly while the trustee’s position is still being confirmed. Once the title is fully clear, a full remortgage, including raising additional funds if you need to, tends to open up more choice.
If your credit score looks low for reasons beyond the bankruptcy itself, our page on remortgaging with a low credit score explains what lenders actually check, which is not the number shown in a credit app.
What affects a remortgage around the 3-year point
| Factor | Why it matters |
|---|---|
| Confirmed position on your interest in the home | Written confirmation from the trustee, whether the interest reverted, sold or is still held, is essential before applying. |
| Any restriction registered before the 3 years expired | This can mean the interest has not reverted automatically. Check the title register carefully. |
| Time since discharge | A track record of around 2 to 3 years of clean payments since discharge helps. |
| Remaining time on your credit file | The bankruptcy stays for up to 6 years from the order, so it may still show for a few more years. |
| Credit issues since the bankruptcy | New defaults, missed payments or CCJs since often carry more weight than the original bankruptcy at this stage. |
| Mortgage payment history | A clean record through and since the bankruptcy is one of the strongest points in your favour. |
| Loan to value and equity | Equity built up over the intervening years can widen your choice of lenders. |
| Income and affordability | Assessed as for any remortgage, including a stress test against higher rates. |
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 bankruptcy order date and discharge date
- Written confirmation from the trustee about your interest in the home
- A copy of the property title register
- Credit reports from Experian, Equifax and TransUnion
- Details of any credit issues since the bankruptcy
- Your current mortgage balance and payment history
- An estimate of your property’s value
Frequently asked questions
Does my interest in my home automatically come back to me after 3 years?
It can, under section 283A of the Insolvency Act 1986, but there are exceptions, including where the trustee has registered a restriction before the 3 years expired or the court has extended the period. Always get the trustee to confirm the position in writing rather than assuming.
Does the 3-year rule shorten the 6 years on my credit file?
No. The 3-year rule is about your legal interest in your home. The credit file entry is separate and lasts 6 years from the bankruptcy order date regardless.
What if the trustee registered a restriction just before the 3 years ended?
This can extend the trustee’s interest beyond the 3-year point. A solicitor can check when any restriction was registered and what it means for your case.
Will more lenders consider me now it has been 3 years?
Often, though it depends on your record since discharge and whether your home’s position is fully resolved. Some lenders may still be cautious until the bankruptcy drops off your file entirely after 6 years.
Do I need a solicitor to sort out the title before I remortgage?
Usually, yes. Clearing a bankruptcy restriction or notice from the Land Registry title is normal conveyancing work, and your remortgage solicitor can typically deal with it alongside the transaction.