Can I Get a Mortgage After a Debt Relief Order?

Yes, you can get a mortgage after a debt relief order, but usually through a specialist lender, once the DRO has ended and often after a further period with a clean record.

A debt relief order (DRO) is a formal insolvency option for people with relatively low debts and very few assets. It usually lasts 12 months, during which creditors cannot chase you. At the end, the debts in it are written off.

In England and Wales, you can apply if you owe less than £50,000 in total and your savings and valuables are worth less than £2,000. There has been no application fee since April 2024, and you apply through an approved debt adviser. See GOV.UK’s guidance on how to get a debt relief order and its wider guide to options for dealing with debts.

For how a DRO compares with other credit problems, see our bad credit mortgage guide.

Can you get a mortgage after a debt relief order?

Yes, but not usually straight away. Lenders treat a DRO as formal insolvency, so mortgage lending during the 12 months it runs is very unlikely. Once it has ended, a small number of specialist lenders may consider you, usually with a larger deposit. The longer since it ended, and the cleaner your record since, the more choice you have.

How does a DRO show on your credit file?

The DRO is recorded on your credit file, where it stays for six years from the date it was made, even though it ends after a year. The debts included usually also show as defaulted.

It also appears on the Individual Insolvency Register while it runs. The Insolvency Service removes it three months after the DRO ends. You can check your entry using GOV.UK’s bankruptcy and insolvency register search. Lenders still see it on your credit file after it leaves the register.

When could you get a mortgage?

Lenders treat a DRO as insolvency, similar to an IVA or bankruptcy:

Stage	What to expect
During the DRO	Mortgage lending is very unlikely
After it ends	A small number of specialist lenders may consider you, often wanting a further period to have passed
Three or more years after	More specialist options, particularly with a clean record since
After six years	The DRO drops off your file and the choice widens considerably

Which situations do lenders see most?

These are illustrative situations, not Option Finance client outcomes.

What do lenders look for?

• How long since the DRO was made and ended
• A clean credit record since, with no new missed payments
• Your deposit, usually larger than for minor credit problems
• Affordability on your current income and outgoings

What will a lender ask you for?

• The DRO dates, both when it was made and when it ended
• Your credit reports, showing the DRO and the debts included in it
• A short explanation of what led to the DRO and what has changed
• Recent bank statements showing your income and bills are managed well

How do you rebuild after a DRO?

1. Check your credit files show the DRO dates correctly and the included debts as settled through the DRO. The ICO explains how to get your file free and correct errors.
2. Register on the electoral roll.
3. Build a clean history with bills and, if you choose, a small credit-builder product that you pay in full every month.
4. Avoid payday loans and short-term credit, which most mortgage lenders view badly.
5. Save a larger deposit. It is the biggest single factor in widening your options.

What mistakes should you avoid?

• Applying too early. A decline leaves a search on your file and does not help the next application.
• Applying to several lenders at once to see who says yes.
• Leaving errors on your file, such as a debt from the DRO still showing as live and unpaid.
• Taking new credit you do not need in the months before you apply.

How does a DRO compare with other options?

If you are considering your options now, a DRO, an IVA, bankruptcy and a debt management plan all affect future mortgage applications differently. Get free advice from a debt charity before deciding.

Frequently asked questions

Speak to Option Finance about a mortgage after a DRO

Send us your DRO dates and credit files. We will tell you straight when lenders are likely to consider you, what deposit you would need and what would help in the meantime.

Book a free initial consultation using the enquiry form below. See our adverse credit mortgage advice, and read our guides to mortgages for discharged bankrupts and mortgages after payday loans.