A negative BKR registration can limit your financial options. An H code, although a sign of recovery, remains a negative registration and can hinder mortgage applications. Fortunately, there are situations where mortgage lenders are willing to look beyond the code alone. We explain what an H-coding means and when you can still get a mortgage.
Taking out a mortgage with an H code: What you need to know
Retrieved July 19, 2024 Written by
Drs. Vera van der Vliet
- Lawyer
What is a BKR registration?
It is the BKR (Bureau of Credit Registration) that keeps track of what credits and loans you have. The purpose of the BKR is to prevent people from borrowing more than they can repay through registration. There are two types of registrations.
- Positive BKR Registration: Provides information about the amount borrowed, from whom and when.
- Negative BKR Registration: Contains codes such as A, H, and 1 through 5, which indicate that you have had payment problems.
What is an A code?
An A code, or Arrears code, indicates a payment delay of at least two months. The "A" stands for Arrears.
What is an H code?
An H-Code, or Recovery Code, means that a previous payment arrearage has been cleared. Although the arrears have been caught up, the registration remains negative because there have been payment problems.
When can a mortgage lender help you?
Mortgage lenders may decide to provide you with financing under the following conditions:
Possible:
- One H-coding: Possibilities exist if you have only one H-coding with a previous A-coding.
Not possible:
- Codes 2, 3, 4
- Multiple A codes
- A new A code after an H code
Please note: If you have recently fallen behind and therefore have a recent recovery code, there are no financing options. On average, you can get a mortgage starting one year from the date of the recovery coding. This avoids the appearance that you still have or have recently had payment problems.
Checklist: mortgage options
Possible:
- One AH coding.
- One A code + end date: full debt repaid.
Not possible:
- AH coding with H date earlier than A date.
- Multiple AH codes.
- Multiple A codes + end date.
- Codes 2, 3, or 4.
What to do with one AH coding?
If so, we recommend that you discuss your options with a mortgage lender or mortgage broker without obligation. Your best option is to submit a mortgage application to the bank.
What to do if rejected for a mortgage?
Dynamite Netherlands helps remove negative registrations by demonstrating that you are financially sound. Request a free phone intake to see if we can help you.
See how it works (1 minute)
Request telephone intake interviewRoadmap for removing a negative BKR registration
- Request Intake Consultation: Fill out the form online or contact us by phone.
- Free consultation with an advisor: One of our advisors will assess your situation during a telephone conversation. Then your application is forwarded to the underwriting department.
- Mediation procedure: Dynamite Netherlands initiates an (expedited) procedure to remove your negative registration.
- BKR-free: You can take out a mortgage again.
