This article will look at your options when trying to get a Mortgage post bankruptcy in 2025.
This article was on the bank of some information we received from a lender regarding their post bankruptcy mortgage product range.
I have put together below a table to look at how your options can differ at various anniversaries of being discharged and also how you credit report appears.
| Clean credit report | Adverse showing | |||
| Discharge Period | Maximum LTV | Rates | Maximum LTV | Rates |
| 1 day | 70% | 6.4% | 70% | 6.4% |
| 1 year | 70% | 6.25% | 70% | 6.25% |
| 2 years | 70% | 6.25% | 70% | 6.25% |
| 3 years | 95% | 5.04% | 95% | 5.95% |
| 4 years | 95% | 5.04% | 95% | 5.95% |
| 5 years | 95% | 5.04% | 95% | 5.95% |
| 6 years | 95% | 5.04% | 95% | 5.95% |
A coupe of things to mention:
Rates – these are based on the highest LTV available. It may be possible to get lower rates at lower LTVs. The rates are also based on todays products.
Clean credit report v Adverse credit report
You might be thinking how can you have a clean credit report after only being discharged for a day. There are occasions this may happen. One example could be for people who go bankrupt due to a tax bill. This would not appear on a credit report and if everything else is kept up to date then the credit report will look cleaner than someone who has gone bankrupt because of 4-5 credit cards and a loan for example.
Another example could be if the debts placed into the bankruptcy do not appear on the credit report. There are 3 credit agencies. Some loan or credit card providers do not declare information to all 3 credit reports.
But the reason I break it down into the 2 sections is down to whether it is likely to pass a credit check on the high street or not.
Summary
Putting this table together I was a little surprised in a positive way at the products available for people who have been made bankrupt.
Less than 3 years discharged
If we look at people who have been discharged for less than 3 years this is where the biggest difference is. The LTVs are obviously lower than if you had not been bankrupt. You will need a larger deposit and the rates are higher, but not significantly so. Back when mortgage rates were 1-2%, these rates were about 5%, they are now 6.4%. The gap between normal and adverse rates has closed. The deposit however has not.
Mortgage then 3 years discharged
This is where I think the good news really hits home. If your credit report is reasonably clean to the point where you could pass a credit check, you would be looking at interest rates in line with someone who has not been bankrupt. These are products we recommend to people with completely clean credit!
But even if we start looking at non high street, the rates are only 0.9% higher! Thats VERY close to the high street! But to also be able to go up to 95% LTV is great news too.
I think the market has been through a turbulent time since 2020, the high rates have come down and the maximum LTVs have crept back up. We are not quite where we were prior to 2020, but then neither are “normal” mortgage rates. But lenders seem to be in a good place and happy to lend.
If you would like to look into your options, please do get in touch.