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Buying a house with BKR registration, is it possible?

On November 26, 2021 written by Drs. Vera van der Vliet
  • Lawyer

mortgage with bkr registration

Buying a new home always brings many questions. Buying a house with BKR registration, for many people that is completely an impenetrable maze. Yet there is no need to throw in the towel right away.

In fact, it is certainly not impossible to buy a home with a BKR registration. Your success rate depends largely on the severity of your registration.

A positive BKR registration, for example, will at most affect the amount of mortgage you can get. Buying a house with a negative BKR registration quickly becomes a lot more difficult, but again that depends on the severity of the situation.

Dizzy already? No worries, we explain it all to you below - step by step - in crystal clear terms. We also show that even a negative registration doesn't have to get in the way of your new mortgage.

Buying a house with BKR registration: here's how it can be done

Explanation video on mortgages by mr. Frank Visser & Dynamite Netherlands

The foundation of buying a home with BKR registration

We like to start with the basics so you understand what the rest of this article is about. So we start with the question: where does this BKR registration actually come from?

In fact, chances are you had never heard of BKR registrations before you were confronted with them during your house hunt. For example, when the mortgage broker asks about it.

Of course, your advisor does not ask this question lightly. When you apply for a mortgage, the lender in question will always check whether there is such a registration in your name.

But what does it mean to be BKR registered? Basically, it simply means that you have taken out a loan or debt of at least €250.

In fact, lenders are required to register loans over €250 with BKR, or Bureau Krediet Registratie. Hence BKR registration.

The BKR thus keeps a record of the loans and debts of all Dutch people. This helps future lenders determine whether it is responsible to lend this person (more) money.

And that's why your BKR registration matters when buying a home. This is because it plays a major role in whether or not your application will be honored. But a registration in itself does not give all the information about this: it is also about the nature of the registration.

Consequences bkr registration for loan

Understanding the format

Just as your new home has a layout with different types of rooms, a BKR registration is also made up of different elements.

These elements have a significant impact on whether or not you can get a mortgage.

For example, there is a big difference between a positive and a negative BKR registration. Also, any particularity codes are important in assessing your chances of buying a home.

We explain these differences further below. For here it is still important to know that a BKR registration remains for five years after the credit has been fully repaid. Especially with a negative registration, this can cause problems when buying a house.

Positive BKR registration and mortgages

When a loan or credit extended to you is registered, it initially leads to a positive BKR registration. (Wondering what all leads to registration? Then read what debts the BKR registers).

As long as you pay the repayments due nicely on time, it will also remain with a positive registration. So then there is not much to worry about.

As long as the loan is outstanding, though, it will affect the amount of mortgage you can get. This is because the repayment you owe will affect your financial standing. You will have less available to repay the mortgage, so you can buy a less expensive house.

It only becomes problematic when you fall behind on payments.

Dynamite BKR registration

Buying a home with a negative BKR registration

In fact, if you are two months or more in arrears, the registration is converted into a negative BKR registration. And that too is visible to lenders when you want to buy a house. One then talks about wanting to take out a mortgage with BKR registration.

It should be clear that as long as you have outstanding debt, you should put home buying out of your mind for a while anyway. But, even when you have cleared the arrears, the negative registration remains visible. In fact, as we already saw, a negative BKR registration itself remains visible for five years after paying off the entire loan.

For prospective lenders, this is a signal that you have faced payment problems before. And so it may cause them to be reluctant to provide the mortgage you need to buy your home.

How reticent? That depends on the nature of the registration.

borrow without bkr

Your particularity coding explained

You can recognize this by the so-called particularity code that is added to a negative BKR registration.

For example, there is the A coding, or arrears notification, which indicates that you are in arrears on the credit in question. Has the arrears been cleared? Then you will see an H-coding, or Recovery Notification.

In addition, you will usually hit another number between 1 and 5. This grade gives lenders an idea of the severity of your arrears and therefore has a major impact on your chances of buying a home.

Wondering what the coding on your statement means? Then check out our overview of BKR codes and their meaning.

Which bank will give a mortgage with BKR registration anyway?

This is a question many people with a BKR registration ask when they want to buy a house. The short answer is that each bank will weigh the risks based on the nature of your registration before they grant or deny the mortgage. The heavier the registration, the more difficult it will be with each bank to get a mortgage. No bank will withhold a BKR check.

When can you do take out a mortgage?

  • In most cases, you can get a mortgage with an A rating, provided the registration has an H rating and/or an expiration date. Note. You may have a maximum of one negative registration with no other codes.

Example:

When not to take out a mortgage?

If you suffer from any of these registrations, it is virtually certain that you will not be able to buy a home.

Do you have more than one A code? Even then it is almost impossible to get a mortgage.

Example:

Getting a mortgage with bkr registration

Knowing where you stand. Do I have a BKR registration?

By now, you have an idea of what BKR registration means for your chances of buying a home. But, how do you know if you are registration free?

Fortunately, it is very easy to see your BKR registrations, if any .

To help you get started, we've created a step-by-step guide to retrieving your BKR yourself.

Does it show that you are dealing with a negative BKR registration, but you still want to buy a house? We may be able to help you.

Remove negative BKR registration to buy a house

As mentioned, even a repaid, negative BKR registration remains visible for five years. In many cases, it really is possible to get rid of this negative registration sooner. This is especially true when it gets in the way of buying a home, or otherwise disrupts your life disproportionately.

Would you like to know what your options are and be advised by an experienced BKR lawyer? Then schedule your free, no-obligation consultation right away.

One of our specialists will then assess your situation and discuss what options are available to you - despite the negative BKR registration - to buy a house and get on with your life.

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