While you are undischarged, remortgaging is very rarely possible. Your interest in your home passed to the trustee when the bankruptcy order was made, and you are under a legal duty to tell any lender you are bankrupt before borrowing £500 or more. Most mainstream and specialist lenders alike will not consider an application at this stage, whatever your income or equity.
This page explains exactly why, what the disclosure duty means in practice, and what options exist instead while you wait for discharge. For what usually happens after discharge, see remortgaging after bankruptcy or our page on a discharged bankruptcy.
On this page
This page covers
- Credit issue
- BankruptcyUsually stays on your credit file for 6 years from the bankruptcy date.
- Status
- Not yet settledOutstanding balances usually narrow the options, and some lenders may expect them to be cleared as part of a remortgage.
Read the main guide: Remortgaging after bankruptcy: what may be possible and when
In short
- Your interest in your home sits with the trustee until it is dealt with or discharge changes the position.
- You must tell a lender you are bankrupt before borrowing £500 or more, or it is a criminal offence not to.
- In England and Wales, discharge usually happens automatically after 12 months.
- A product transfer or speaking to your current lender is usually a more realistic option in the meantime.
Why can’t you remortgage while you are undischarged?
Two things stand in the way. First, your beneficial interest in your home passed to the trustee, often the Official Receiver, when the bankruptcy order was made. A lender cannot lend against equity that legally belongs to someone else. Second, you are under specific legal restrictions on borrowing while bankrupt.
If you borrow, or try to borrow, £500 or more without telling the lender you are an undischarged bankrupt, this is a criminal offence. This applies to any new credit, not only mortgages.
What happened to your home when the bankruptcy order was made?
On bankruptcy, your interest in the property (your share, if you own it jointly) passed to the trustee. The trustee can sell the property, sell the interest back to you or a family member, or apply to the court for a charge over the home, and may wait if there is little equity to pursue.
Because that interest has not been resolved, there is nothing straightforward for a new lender to secure a mortgage against. This is the main practical reason applications do not proceed at this stage, separate from the credit file itself.
How long does being undischarged usually last?
| Question | General position |
|---|---|
| How long does it last? | Usually 12 months from the bankruptcy order in England and Wales, though discharge can be suspended in some cases. |
| Can it be extended? | Yes, if the Official Receiver applies to suspend discharge, for example where you have not co-operated, or a bankruptcy restrictions order is later made. |
| What ends automatically? | Most restrictions end at discharge, though some duties can continue under a restrictions order. See our page on bankruptcy restrictions orders. |
| What does not change at discharge? | The bankruptcy still shows on your credit file for 6 years from the order date, and your home may still need sorting out. |
General information for England and Wales. Scotland (sequestration) and Northern Ireland have their own rules; check with your trustee.
What can you do instead while you wait?
- Talk to your current lender early, particularly if you are worried about affordability. Lenders must treat struggling borrowers fairly and consider forbearance.
- Keep your mortgage payments up to date if you possibly can. This record matters a great deal once you are discharged.
- Ask your trustee for their view on what will happen to your interest in the home, and when.
- Get free debt advice from MoneyHelper, StepChange or National Debtline if other debts are involved.
A product transfer, a new deal with your existing lender where you are not borrowing more, is sometimes possible without the same full new-lending process, though the lender still decides what it will offer someone who is bankrupt, and the trustee’s interest is still a factor.
Planning for the day you are discharged
It is worth using this time to prepare. Check your credit reports with Experian, Equifax and TransUnion once the bankruptcy is recorded correctly, keep any correspondence from your trustee, and think about what proof of discharge you will need. Our page on a discharged bankruptcy covers what usually needs doing next.
If other credit issues sit alongside the bankruptcy, such as a county court judgment or defaults from before the order was made, it is worth understanding how those are treated separately, since each follows its own 6-year timeline regardless of when you are discharged.
Many bankruptcies among homeowners follow a business difficulty rather than personal spending. If this applies to you, lenders will eventually want to see how your current work is set up, whether that is employment, a new venture, or contracting, and how it has performed since. Our page on self-employed remortgages with bad credit explains what is usually asked for once you reach that stage, so it is worth reading ahead of time.
What affects your position while you are undischarged
| Factor | Why it matters |
|---|---|
| Whether your interest in the home has been dealt with | This normally has to be resolved before any new lending can be secured against the property. |
| Your discharge date | Usually 12 months from the bankruptcy order in England and Wales, unless discharge is suspended. |
| Whether discharge has been suspended | This can extend the restriction period if the Official Receiver has applied to the court. |
| The £500 disclosure duty | You must tell any lender about your bankruptcy before borrowing this amount or more. |
| Mortgage payment history | Keeping up your existing mortgage payments through this period is looked at closely later. |
| Amount and type of debt in the bankruptcy | This can affect how your trustee and, later, lenders view your situation. |
| Property value | This sets the value of the trustee’s interest and the equity available. |
| Whether other credit issues are present | Defaults or CCJs alongside the bankruptcy are part of the wider picture a future lender will see. |
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 expected discharge date
- Any correspondence from the trustee about your interest in the home
- Whether a bankruptcy restrictions order or undertaking has been applied for
- Details of your current mortgage, balance and payment history
- Your most recent credit reports
- An estimate of your property’s value
Frequently asked questions
Can any lender at all remortgage me while I am undischarged?
In practice, almost never. Both the legal restrictions on you and the unresolved position of your home mean mainstream and specialist lenders alike will not usually proceed until you are discharged.
Do I have to tell my existing lender I am bankrupt?
Yes, if you are borrowing £500 or more you must disclose your bankruptcy status, and this includes taking a new deal with your existing lender. Not disclosing is a criminal offence.
Can discharge be delayed?
Yes. The Official Receiver can apply to the court to suspend your discharge, for example if you have not co-operated with the bankruptcy process. Ask your trustee if you are unsure of your expected date.
What happens to my home if I do nothing while undischarged?
The trustee decides what to do with your interest in the property, which can include selling it, agreeing to sell it back to you, or applying for a charge over it. If there is little equity, the trustee may not take action straight away.
Is there anything I can do now to help once I am discharged?
Keeping your mortgage payments up to date, staying on the electoral register and getting your trustee’s position in writing all help. Our page on a discharged bankruptcy sets out what usually comes next.