Bad Credit • Right to Buy
Bankruptcy is one of the toughest credit events, but it doesn’t end your Right to Buy (RTB) plans forever. Once you’re discharged — and especially after the 3-year mark — some specialist lenders may consider your application, particularly if you have a strong RTB discount and clean conduct since.
Key takeaways
- You cannot get a mortgage during bankruptcy; you must be discharged.
- Best chances start at 3+ years post-discharge; options broaden again after 6 years when it drops off your file.
- Your RTB discount counts as equity and can offset risk — larger discounts help.
What Is Bankruptcy?
- A legal process where qualifying debts are written off because you can’t repay them.
- Typically lasts 12 months, after which you’re classed as discharged.
- Remains on your credit file for six years from the start date.
More info: GOV.UK – Bankruptcy.
Can You Get a Right to Buy Mortgage After Bankruptcy?
- During bankruptcy: No — lenders will not approve.
- 0–3 years after discharge: Almost no lenders accept.
- 3+ years after discharge: A small pool of specialist lenders may consider.
- 6 years from start: Bankruptcy drops off your file, improving options.
How Lenders View Bankruptcy
- Time since discharge — the older, the better.
- RTB discount — treated as equity and reduces risk.
- Current stability — income, affordability, and no new issues.
- Equity level — larger discounts/equity give more comfort.
Case Studies
Case A – Recently Discharged
Mark was discharged 2 years ago. Despite a 45% RTB discount, no lender would accept at that point. He waited another year and reapplied, securing a mortgage with a specialist lender at 3 years post-discharge.
Case B – 5 Years After Discharge
Julie was discharged in 2018. By 2023, with a 35% discount and clean conduct, she was accepted by a specialist building society and bought her council house.
Risks to Be Aware Of
- Specialist rates are often higher than high street banks.
- Some lenders cap borrowing to 70–75% LTV even where the RTB discount is higher.
- If affordability is tight, lenders may still decline even after 3 years.
Related reading: Right to Buy after an IVA.
Practical Steps if You’ve Been Bankrupt
- Wait at least 3 years post-discharge before applying.
- Keep your credit clean — no new missed payments or defaults.
- Use your RTB discount wisely — larger discounts strengthen your case.
- Check your credit report — ensure the bankruptcy is marked as discharged.
- Work with a specialist broker — most suitable lenders are broker-only.
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FAQs – Right to Buy After Bankruptcy
Can I get a Right to Buy mortgage during bankruptcy?
No. You must wait until you’re discharged.
How long after bankruptcy before I can apply?
Most lenders want to see 3+ years post-discharge.
Will I need a cash deposit?
Usually not — lenders often accept the RTB discount as equity in place of a cash deposit.
Do all lenders decline bankruptcy cases?
High street banks will, but a few specialist lenders may accept after the 3-year mark.
Does bankruptcy affect me forever?
No. It drops off your file after six years.
