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Mortgage with BKR coding 3. Is it actually possible?

On June 30, 2022 written by Mr. Lisa van Gulik
  • Trial lawyer

negative bkr registration - credit rating

A mortgage with BKR code 3: perhaps the greatest challenge of all credit loans with a registration with the BKR. But how does this actually happen? And what - once you are dealing with a BKR registration with 3 code - are your options for obtaining a mortgage?

In this article, we explain what a BKR code 3 means and why it can cause so many problems when applying for a mortgage or other credit.

Content:

Every loan or credit you take out, or any debt you incur, is registered with the Bureau Krediet Registratie (BKR) in the Netherlands. This is called a BKR registration. This often has far-reaching consequences for your ability to get a mortgage. How bad those consequences are depends on the code attached to your registration.

What is a BKR 3 code?

A BKR code 3 is what is called a particularity code on a BKR registration. That code says something about the nature of the registration so that a credit reporting agency has a better idea of what is or was going on. A BKR 3 code specifically means that there has been a charge-off or discharge on your debt.

This happens, for example, when the lender does not expect to recover the (full) amount. It may then be decided to make an arrangement whereby you pay off part of the debt, in exchange for forgiveness of another part.

When that waiver or write-off exceeds €250, it means that a 3 code is added to the BKR registration of the debt in question.

BKR removal how does it work

What consequences does a BKR 3 code have?

Unfortunately, a BKR 3 code often has far-reaching consequences. Especially if you want to take out a loan or mortgage, or lease a car.

The BKR overview - containing all registrations in your name - can be viewed by all lenders in the Netherlands. They can use this overview to determine how creditworthy you are, and whether or not it is wise to grant you a (new) loan. And if so, how much money you can borrow responsibly.

In this way, the BKR summary should protect people from unjustifiably high debts and loans they cannot afford. So as long as a debt or credit is outstanding, it means you can borrow less for a mortgage, for example. It makes sense, because you have a payment obligation to repay that other balance. And so you have less to spend each month to repay the mortgage.

A particularity code makes getting a new loan extra difficult, because the mortgage or loan lender can see that there are (or have been) payment problems. As a result, they will be reluctant to grant a new loan.

Getting a mortgage with bkr registration

How long have you been suffering from a BKR 3 code?

Even after a balance is fully repaid, a BKR registration remains for five years. This is not such a problem if there was no debt or arrears (positive BKR registration), because the monthly payment obligation no longer depresses your disposable income.

If there was an arrears repayment (negative BKR registration), then the particularity coding representing the nature of the debt also remains visible. That is, the A3 coding on your registration (a Late Payment Report with code 3 for a write-off or discharge) also remains visible.

In the case of a write-off, the date of the code 3 is the same as the end date on the statement. With a write-off, this is not the case: the 3 code is then added on a different date than the credit was closed. In both cases, therefore, it remains visible anyway that you have not repaid part of the original debt after making an arrangement with the creditor.

The lender is required to send you a reminder of the outstanding amount of the debt within that same five-year period that a registration remains visible, otherwise your payment obligation will be time-barred.

The possibilities with BKR A3 registration

Many people only find out that they (still) have a BKR registration on their name when they try to apply for a mortgage. This is because it is often not known what loans and debts the BKR registers.

For example, a person may unknowingly have a registration as a result of a phone plan with free phone, or by being able to be in the red on a bank account.

In the case of a BKR A3 coding, you are probably aware that it is in your name. After all, you made an arrangement with the lender. Yet you may have thought that was the end of the matter, or that it is now so long in the past that you do not need to think about it.

During a mortgage application, such a registration can then cause unpleasant surprises. It can even lead to a mortgage that initially did not seem to be a problem not being able to be assigned after all, resulting in the expiration of the financing period when an offer is placed.

We can well imagine that you want to know where you stand. That is why we are pleased to offer you the opportunity to take advantage of our free, no-obligation intake interview.

One of our specialists will assess the situation with you so that you can better understand your options. In some cases removal of the BKR registration is possible, so that you can continue with a clean slate and become creditworthy again. It is often necessary that you still pay the original amount waived so that you can reach an agreement with the lender for the removal of the registration.

Would you like to know what the best approach is for you and what lawyers at Dynamiet Nederland - specialists in removing BKR registrations - can do for you in this regard? Then schedule your free consultation today.

Frequently asked questions about A3 codes

How long does an A3 coding stay in place?

What is the heaviest BKR registration?

How do I get rid of an A3 coding?

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