It is possible, and more common than people assume. The two things lenders care about are whether the arrangement has been formally discharged and how long ago that happened. Expect to need a larger deposit and a specialist lender, at least initially.
Discharge is the starting point
Almost every lender requires the IVA or bankruptcy to be fully discharged before they will consider an application. A small number will look at an IVA still running, usually with a substantial deposit and the insolvency practitioner's written consent, but this is unusual.
The discharge date is the date that matters, not the date the arrangement began. An IVA that ran for six years and was discharged last month is treated as one year zero, not six years of progress.
That catches people out. Someone who completed a five-year IVA often assumes those years count towards the lender's waiting period. They generally do not.
Get your certificate of discharge or completion certificate. Lenders will ask for it, and it can take time to obtain if you no longer have it.
The rough timeline
Every lender sets its own rules, but the pattern is consistent:
| Time since discharge | Typical position |
|---|---|
| Under 1 year | Very limited. A small number of specialists, 25%+ deposit |
| 1-3 years | Specialist lenders, typically 15% to 25% deposit |
| 3-6 years | Wider specialist choice, better rates, deposit requirements ease |
| 6+ years | The record drops off your file; mainstream lending often reopens |
Bankruptcy is generally treated more strictly than an IVA, and a second bankruptcy or IVA is considerably harder again.
Deposit does the heavy lifting
More than in any other adverse credit scenario, the deposit determines what is available.
At 25% or more, a reasonable number of specialist lenders will consider a discharged IVA or bankruptcy relatively soon after discharge. At 5% to 10%, the options in the first few years are close to none.
If you are saving towards a purchase after discharge, understand that every extra percentage point of deposit does more for your options here than almost anything else you can do.
A joint application can help. If you are buying with a partner who has a clean credit history and a reasonable income of their own, some lenders will look at the application more favourably than a sole applicant carrying the same discharged IVA or bankruptcy. It does not erase the record — the discharge date and the deposit still matter most — but it widens which lenders will consider you, and it is worth raising with your broker early rather than assuming it makes no difference.
Rebuilding in the meantime
The years between discharge and application are not dead time. What you do with them changes the outcome.
Get on the electoral roll at your current address. Simple, free, and lenders check it.
Open a basic bank account and run it well. No unauthorised overdrafts, no returned direct debits.
Take a small amount of manageable credit and repay it properly. A discharged bankrupt often has almost no active credit history, which is itself a problem — lenders have nothing recent to assess. A modest credit-builder card, used lightly and cleared monthly, creates a visible record of good conduct.
Never miss a payment on anything. Post-discharge conduct is scrutinised closely. A single missed payment after discharge carries disproportionate weight.
Check your credit file annually. Insolvency records are sometimes reported incorrectly — wrong dates, or accounts included in the arrangement still showing as active defaults. Correcting these matters.
What you will be asked for
- Certificate of discharge or completion certificate
- Details of what the arrangement covered and why it arose
- Full credit reports from all three agencies
- Evidence of your deposit and its source
- Standard income evidence
Be straightforward about the circumstances. Underwriters at specialist lenders read explanations, and a redundancy, a business failure or a relationship breakdown is understood very differently from persistent overspending. A brief, factual written explanation genuinely helps.
Realistic expectations
The first mortgage after discharge will cost more than a standard one. That is the price of re-entering the market, and it is temporary — take a shorter fixed deal, maintain a perfect record, and remortgage when the discharge has more age behind it and your options have widened.
We would set a review date at the outset rather than leaving you on the specialist rate longer than necessary.
It is worth having the conversation
People often assume an IVA or bankruptcy means ownership is off the table for a decade. Frequently it does not. Sometimes the honest answer is that you need another year and a larger deposit — but that is a plan, which is more useful than an assumption.
Call 0116 277 7536 or see adverse credit mortgages in Leicester.
More guides: specialist mortgage guides for Leicester.
