Specialist information for UK homeowners with adverse credit

Specific situation · Bankruptcy

Remortgaging with a bankruptcy restrictions order or undertaking

A bankruptcy restrictions order or undertaking can keep some restrictions running for years after discharge.

In short

  • A BRO or BRU extends bankruptcy restrictions for a set period of 2 to 15 years, decided by the court or agreed by undertaking.
  • It applies on top of, not instead of, the normal bankruptcy and discharge process.
  • Some disclosure duties continue for as long as the order or undertaking runs.
  • It is a matter of public record and a lender or its solicitor may become aware of it.
  • Updated
  • General information, not advice

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Your home may be repossessed if you do not keep up repayments on your mortgage.

A bankruptcy restrictions order (BRO) or bankruptcy restrictions undertaking (BRU) extends some of the restrictions that normally end at discharge, for a period the court sets of between 2 and 15 years. The Official Receiver applies for one where they consider your conduct before or during the bankruptcy was blameworthy, for example hiding assets or running up debts recklessly, and a BRU is a voluntary agreement to the same effect without a court hearing.

If you have one of these, discharge from bankruptcy itself does not end everything. This page explains what continues, for how long, and what it may mean when you come to remortgage. For the general position after discharge, see a discharged bankruptcy.

On this page

This page covers

Credit issue
BankruptcyUsually stays on your credit file for 6 years from the bankruptcy date.

Read the main guide: Remortgaging after bankruptcy: what may be possible and when

In short

  • A BRO or BRU extends bankruptcy restrictions for a set period of 2 to 15 years, decided by the court or agreed by undertaking.
  • It applies on top of, not instead of, the normal bankruptcy and discharge process.
  • Some disclosure duties continue for as long as the order or undertaking runs.
  • It is a matter of public record and a lender or its solicitor may become aware of it.

What is a bankruptcy restrictions order?

The Official Receiver can apply to the court for a BRO where they believe your conduct, before or during the bankruptcy, was dishonest or otherwise blameworthy. Examples given by GOV.UK include giving away assets or selling them for less than they were worth, or failing to keep proper accounting records. The court decides whether to grant the order and how long it should last, from 2 up to 15 years.

A bankruptcy restrictions undertaking (BRU) has the same practical effect but is agreed voluntarily with the Official Receiver rather than decided at a court hearing. People sometimes choose this route to avoid the time and cost of a hearing.

What continues while a BRO or BRU is in place?

The exact terms are set out in the order or undertaking itself, but they typically mirror some of the restrictions that would otherwise end at discharge, such as needing court permission to act as a company director, and continuing to disclose your bankruptcy history when relevant, including to lenders.

Check the exact terms of your order

BROs and BRUs are individually worded. Read yours carefully, or ask the Insolvency Service or a solicitor to confirm exactly what continues and for how long, before you apply for a remortgage.

How does this affect a remortgage?

What a BRO or BRU can mean when remortgaging
AreaWhat tends to apply
Disclosure to the lenderIf your order requires ongoing disclosure of your bankruptcy history, mention this to an adviser at the outset.
Credit fileThe bankruptcy itself still follows the normal 6-year rule from the order date, separately from the restrictions order.
Length of the orderA longer order, closer to the 15-year end of the range, tends to reflect more serious conduct, which some lenders may want explained.
Public recordBROs and BRUs are recorded on the Individual Insolvency Register while they run, and a lender’s checks may reveal one.

General information only. The specific terms of your order or undertaking always take priority over general descriptions like this one.

What to do if you have a BRO or BRU and want to remortgage

  • Read the order or undertaking carefully, or ask the Insolvency Service for a copy if you no longer have it.
  • Note exactly when it ends, since this is separate from your discharge date.
  • Tell an adviser about it at the start, along with your discharge date and the bankruptcy order date.
  • Keep evidence of your conduct since, particularly a clean payment record, which can help explain the wider picture.

A BRO or BRU does not automatically prevent a remortgage. It simply means there is an extra layer of disclosure and history for an adviser and lender to understand, on top of the bankruptcy itself. See our page on what happens when your bankruptcy was over 3 years ago for how the underlying timeline works.

How this fits with the rest of your credit history

A BRO or BRU is only one part of the picture a lender will look at. Your mortgage payment record, any other credit issues such as defaults, and your income and affordability are all assessed alongside it, in the same way as for anyone remortgaging after bankruptcy.

If your case also involves a low credit score for reasons unconnected to the order 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 matters if you have a BRO or BRU

What matters if you have a BRO or BRU
FactorWhy it matters
The exact terms of your order or undertakingThese vary between cases and set out precisely what continues and for how long.
How long the order runsAnywhere from 2 to 15 years, decided by the court or agreed in the undertaking.
Ongoing disclosure dutiesSome orders require you to continue disclosing your bankruptcy history for their duration.
The separate 6-year credit file ruleThe bankruptcy entry itself still follows the normal timeline regardless of the restrictions order.
Why the order was madeThe reasons behind it may come up in conversation with an adviser or lender.
Your record since the bankruptcyA clean history since can help put the original conduct into context.
Mortgage payment historyKeeping your mortgage up to date throughout is looked at closely.
Property value and loan to valueAs with any remortgage, more equity generally widens the choice of lenders.

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.

  • A copy of your bankruptcy restrictions order or undertaking
  • The start and end dates of the order or undertaking
  • Your bankruptcy order date and discharge date
  • Credit reports from Experian, Equifax and TransUnion
  • Your current mortgage balance and payment history
  • An estimate of your property’s value
  • Proof of income

Frequently asked questions

Does a bankruptcy restrictions order mean I cannot remortgage at all?

No. It adds extra conditions, often around disclosure, on top of the normal bankruptcy and discharge process. It does not automatically stop you remortgaging, though it is something to explain to an adviser from the start.

How long does a bankruptcy restrictions order or undertaking last?

Between 2 and 15 years, as set by the court or agreed in the undertaking. This runs separately from your discharge date and from the 6-year credit file rule for the bankruptcy itself.

Is a bankruptcy restrictions undertaking the same as an order?

They have the same practical effect. An order is imposed by the court after a hearing, while an undertaking is agreed voluntarily with the Official Receiver without going to court.

Will a lender find out about my restrictions order?

It is recorded on the Individual Insolvency Register while it runs, and a lender’s checks may reveal it. If your order requires you to disclose it, you must do so regardless of whether a lender would otherwise find out.

Does the restrictions order extend how long the bankruptcy shows on my credit file?

No. The credit file entry for the bankruptcy itself still follows the normal 6-year rule from the order date. The restrictions order is a separate, additional set of conditions on you personally.

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Your home may be repossessed if you do not keep up repayments on your mortgage.

Check your remortgage options

Your home may be repossessed if you do not keep up repayments on your mortgage.