Can I Get a Mortgage After Bankruptcy?

If you’re asking, can I get a mortgage after bankruptcy, you’re facing a challenging but not impossible situation. Bankruptcy is one of the most significant red flags for mortgage lenders, making it harder to get approved. However, with the right approach and time, yes you can!

 

How Does Bankruptcy Affect Your Mortgage Application?

Bankruptcy means you were unable to repay your debts and needed a legal fresh start through the courts. This stays on your credit report for six years from the date of registration, signalling a high risk to lenders.

• Most high street lenders will reject mortgage applications during this six-year period.

• Bankruptcy shows lenders you were unable to manage your debts fully, which makes you a high-risk borrower.

• Even after discharge, lenders will be cautious and may require a larger deposit and higher interest rates.

 

Specialist Mortgage Lenders and Bankruptcy

Some specialist lenders may consider your mortgage application once you have been discharged and a few years have passed. Key conditions include:

• Providing a substantial deposit, often at least 25% of the property price.

• Accepting higher interest rates due to increased risk.

• Demonstrating clear financial recovery and responsible money management.

 

What Happens After Bankruptcy Is Removed From Your Credit Report?

Once the bankruptcy falls off your credit file after six years, lenders will still ask about your past bankruptcy but will treat it less strictly.

• You’ll need to prove you’ve built a stable financial history since bankruptcy.

• Consistent on-time payments and a good credit score will improve your chances.

• Saving for a mortgage deposit and budgeting well are essential steps.

 

How Klink Helps You Get Mortgage Ready After Bankruptcy

Klink provides valuable tools for people rebuilding their finances post-bankruptcy:

• Mortgage Readiness Check: Understand how lenders see your current financial behaviour.

• Spending Insights: Identify areas where you might be overspending or missing payments.

• Home Goal: Set realistic savings targets and timelines for your mortgage deposit.

Using Klink helps show lenders that you’ve changed your financial habits and are serious about managing your money responsibly.

 

Tips for Getting a Mortgage After Bankruptcy

• Wait until your bankruptcy has been discharged.

• Build a positive credit history with on-time payments.

• Save for a larger deposit (typically 25% or more).

• Avoid taking on new debt unnecessarily.

• Use Klink to track and improve your spending and saving.

• Consider consulting a mortgage broker specialising in adverse credit.

Getting a mortgage after bankruptcy takes time, patience and smart financial planning.

Download Klink today and start your journey towards homeownership with confidence.