Buy to Let • Bad Credit
Bankruptcy is one of the most serious forms of bad credit — but it doesn’t have to end your landlord ambitions. With time, a strong deposit, and the right lender, a buy to let mortgage after bankruptcy is still possible.
Shortcut: See our full guide → Buy to Let Mortgages with Bad Credit.
How Bankruptcy Affects Mortgages
- Bankruptcy is a legal process declaring you unable to repay debts.
- It usually lasts 12 months, after which you’re discharged.
- It stays on your credit file for 6 years from the start date.
- Even after removal, some lenders still ask about previous bankruptcies.
Can You Get a Buy to Let Mortgage After Bankruptcy?
| Status | Lender View |
|---|---|
| Undischarged bankruptcy | Impossible – no lender will accept. |
| Discharged <3 years | Very few options – usually declined. |
| Discharged 3+ years | Some specialist lenders may accept with a large deposit. |
| 6+ years since start | Bankruptcy drops off your file – more lenders become available. |
Deposit and Rental Income
- Deposit: Expect to need 30–40% after bankruptcy.
- Rental stress test: Lenders check rent covers payments at 125–145%.
- Equity matters: Stronger finances improve acceptance chances.
Case Studies
Case A – Recently Discharged
Mark was discharged 2 years ago. With a 35% deposit and strong rent, Honest Mortgages found one niche lender willing to consider him — though at a higher interest rate.
Case B – 6 Years On
Debbie went bankrupt in 2017 and was discharged in 2018. By 2024, the entry had dropped off her file. With a 30% deposit, she secured a buy to let mortgage at competitive rates.
Practical Steps After Bankruptcy
- Wait at least 3 years post-discharge before applying.
- Check your credit file — ensure the bankruptcy is marked as discharged.
- Save a large deposit — 30–40% is usually needed.
- Prove strong rental cover — high yields improve your case.
- Work with a broker — many accepting 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 — Buy to Let After Bankruptcy
Can I get a buy to let mortgage while undischarged?
No — you must wait until discharge.
How long after bankruptcy can I apply?
At least 3 years after discharge, though more options open after 6 years.
Do I need a bigger deposit after bankruptcy?
Yes — expect 30–40%.
Will high street banks accept me after bankruptcy?
No — you’ll need specialist lenders.
Does it matter if I’ve rebuilt credit since bankruptcy?
Yes — clean recent history greatly improves your chances.
