Bad Credit • Right to Buy
One of the most common questions is: “How long do I need to wait after bad credit before I can use Right to Buy (RTB)?” It depends on the type of issue, when it happened, and the lender. The good news: you may not need to wait as long as you think.
Key takeaways
- Older and smaller issues = more lender choice and better terms.
- Some lenders accept recent defaults or CCJs where the RTB discount is strong.
- IVAs/DMPs: options improve once settled or well-managed; bankruptcy usually needs 3+ years post-discharge.
Why Waiting Time Matters
- Lenders judge risk by recency and severity of issues.
- A small default last year is very different to a bankruptcy last year.
- The older the issue, the more choice you’ll have — usually at better rates.
Typical Waiting Times by Credit Issue
| Credit Issue | When Lenders May Consider You |
|---|---|
| Missed payments (unsecured) | Often ignored if small or historic. |
| Defaults | Some lenders consider within 6–12 months depending on size/type; more options after 1–3 years. |
| CCJs | Some lenders consider straight away; wider choice after 1–3 years. |
| IVA | Limited options until settled. Some allow RTB mortgage funds to clear IVA. Better after 3+ years settled. |
| DMP | Some accept active plans if payments are consistent; more lenders once settled. |
| Bankruptcy | Very few options until ~3 years post-discharge; drops off your file after 6 years. |
Case Studies
Case A – Recent Default
Anna had a £450 default from 10 months ago. With a 40% RTB discount and steady income, a specialist lender accepted her case.
Case B – IVA Cleared by Mortgage
Tom’s IVA was cleared using part of his RTB mortgage funds. With the IVA marked complete and a 35% discount, he was approved by a specialist lender.
Case C – After Bankruptcy
Claire was discharged in 2020. By 2024, with four years of clean conduct and a 30% discount, she secured a mortgage through a specialist provider.
How to Improve Your Chances While You Wait
- Check all three credit files and correct errors.
- Keep conduct clean — no new missed payments.
- Save if you can — even a small cash deposit broadens options.
- Leverage your discount — bigger RTB discounts reduce lender risk.
- Use a broker — most flexible lenders are broker-only.
Check all three credit files in one place
Use our partner link to view your data across agencies. This won’t harm your score.
FAQs – Waiting Times for RTB After Bad Credit
Do I have to wait 6 years after bad credit?
Not always. Defaults and CCJs can be accepted sooner — sometimes within 12 months.
Can I use RTB while in an IVA or DMP?
In some cases. An IVA may be cleared with mortgage funds, and some lenders accept active DMPs with good conduct.
What about bankruptcy?
Most lenders want to see around 3 years post-discharge.
Do high street banks accept recent bad credit?
Almost never. You’ll need a specialist lender.
Is it worth waiting longer?
Yes. The older the issue, the more lender choice you’ll have — and often better pricing.
