A BKR and student loan: it is a combination that raises questions for many (former) students, especially when they want to buy a house or take out another loan. Although a student loan with the Dienst Uitvoering Onderwijs (DUO) does not automatically lead to a registration with the Bureau Krediet Registratie (BKR), this debt does affect your financial possibilities. In this article we, as lawyers specialising in financial law, explain exactly how matters stand, which rules apply and what you can do if you run into problems because of your student loan in relation to credit provision.
The most frequently asked question about a BKR and student loan is whether the debt at DUO is visible to lenders in the BKR register. The answer is clear: no, a regular student loan at DUO is not registered with the Bureau Krediet Registratie (BKR). The BKR records loans and credits, such as personal loans, credit cards and overdrafts, but student loans fall outside this registration obligation. This means that banks and mortgage providers cannot automatically view your student loan via a BKR check. However, this does not relieve you of the obligation to report your student loan when you apply for a new loan or mortgage. Lenders are legally obliged to assess your financial capacity to prevent overborrowing, and a student loan is an essential part of your financial obligations.
You are legally obliged when applying for a mortgage to report all your financial obligations, including a student loan. If a student loan is not reported, the mortgage provider cannot make a proper calculation of what can be responsibly borrowed. The Rijksoverheid also states that you will then not be entitled to the insurance of the Nationale Hypotheek Garantie (NHG). What further consequences an application or agreement has depends on the facts and the applicable terms. See Rijksoverheid: studieschuld melden bij hypotheek.
The influence of a student loan on your mortgage
Although there is no direct link between the BKR and student loans, the debt at DUO has a considerable impact on the maximum mortgage you can obtain. Mortgage providers take into account the amount you must repay monthly to DUO. This amount is deducted from the space you have to carry mortgage costs. The calculation method banks use depends on the system under which your student loan falls: the old system (repayment in 15 years) or the new system (repayment in 35 years). Because the monthly payments in the new system are spread over a longer period, a debt under the new system generally weighs less on your maximum mortgage than a debt under the old system.
The mortgage provider usually assumes the amount you pay monthly to DUO. In some situations, for example before the repayment phase or with temporarily lower payments, the amount you would have to pay may be used. Extra repayments can reduce your monthly payments and thereby affect the maximum mortgage. For the current assessment, consult Rijksoverheid: studieschuld en maximale hypotheek and your mortgage provider.
What if you have arrears with DUO?
Although a regular student loan is not visible through a BKR check, timely contact with DUO in case of payment problems remains important. DUO offers options under conditions such as an income test or repayment-free months. General statements about registration with other registers are not appropriate without assessment of the concrete situation.
If you notice that you are having difficulty repaying your student loan, it is crucial to act promptly. DUO offers various options for people with payment problems, such as lowering the monthly amount based on your income (income test) or temporarily suspending repayment (repayment-free months). By communicating proactively with DUO you can prevent the situation from escalating and endangering your financial future.
BKR registration due to other debts alongside DUO
In practice we often see that the combination of a BKR and student loan becomes problematic when other loans have also been taken out in addition to the DUO debt. Think of a personal loan, a revolving credit or even an overdraft on a current account. These other credits are registered with the BKR. When you apply for a mortgage, the bank will include both your student loan (which you must declare yourself) and your BKR-registered debts (which the bank can view itself) in the calculation of your maximum borrowing capacity.
It is therefore very important to have insight into your current BKR registrations. You can request your own data from the BKR free of charge. If you discover that there is an incorrect BKR registration, it is important to take action as soon as possible. An incorrect registration can significantly reduce your chances of a mortgage or loan, especially when you already have a student loan that reduces your borrowing capacity.
Concealing a student loan: the legal risks
A student loan must be declared when applying for a mortgage. This also applies if the debt is not visible via a BKR check. The Rijksoverheid explains that a mortgage provider cannot make a proper calculation of a responsible mortgage amount without this information. Have the consequences for a specific application or existing agreement assessed if necessary on the basis of the applicable terms. See the official explanation from the Rijksoverheid.
The consequences of incomplete information cannot be determined independently of the specific application, agreement and circumstances. What is clear, however, is that a student loan must be reported and that it is relevant for the mortgage calculation. DUO can provide a current debt overview for a mortgage, including the debt, the monthly amount and the remaining term. See DUO: schuldoverzicht voor hypotheek.
Refinancing a student loan: wise or not?
Some people consider refinancing their student loan by taking out a personal loan. The idea behind this is often that the personal loan has a lower interest rate or that they want to ‘hide’ the debt for a mortgage application. However, this is rarely a good idea and carries significant risks. First of all, a personal loan is always registered with the BKR. By converting your student loan into a personal loan, you therefore create a BKR registration yourself that is directly visible to mortgage providers.
In addition, the conditions of a student loan at DUO are generally much more favourable than those of a commercial loan. DUO takes your income (capacity to pay) into account and offers the possibility to temporarily suspend repayment. With a personal loan you do not have this flexibility; you must repay the agreed amount monthly regardless of your financial situation. If you do get into trouble because of a BKR registration after refinancing, it is advisable to seek legal advice. A specialised lawyer can help you with the removal of the BKR registration if it is disproportionate.
Legal assistance with problems in credit provision
If you are faced with a rejection of a mortgage or loan because of the combination of a BKR and student loan, this can be very frustrating. In some cases the rejection is unjust or the bank bases its decision on incorrect data. It is important to know that you have rights and that you can challenge decisions of financial institutions. For example, you can file a complaint with the Klachteninstituut Financiële Dienstverlening (Kifid) if you believe the bank has acted negligently.
At Arslan & Arslan Advocaten we have extensive experience in advising and litigating in matters relating to credit registrations and financial disputes. We can assess your situation, advise on the feasibility of legal proceedings and assist you in contact with banks, the BKR or the Kifid. Sometimes a well-founded letter from a lawyer is enough to persuade a bank to change its mind or to have an incorrect registration removed.
Frequently asked questions
Can a bank see my student loan via the BKR?
No, a regular student loan at DUO is not registered with the BKR. Banks and mortgage providers therefore cannot automatically view your student loan via a BKR check. You are, however, legally obliged to declare your student loan yourself when applying for a mortgage or loan.
What are the consequences if I conceal my student loan when applying for a mortgage?
A student loan must be reported in the mortgage application. If not reported, the mortgage provider cannot make a proper calculation of what can be responsibly borrowed; the Rijksoverheid also states that you will then not be entitled to NHG. Any further consequences depend on the specific application, agreement and circumstances.
Is it the original student loan or the current remaining debt that counts for my mortgage?
A mortgage provider usually bases itself on the amount you pay monthly to DUO; in certain situations the amount you would have to pay may be decisive. Extra repayments can reduce the monthly burden and thus affect the maximum mortgage. Consult the current explanation from the Rijksoverheid and your mortgage provider.
Also read
- Incorrect BKR registration: step-by-step removal plan
- Removing BKR registration after repayment – your rights explained
- BKR registration and mortgage – is it still possible?
Need help?
Are you having problems obtaining a mortgage because of a combination of a BKR registration and a student loan? Or do you want to have an incorrect BKR registration removed? The specialised lawyers of Arslan & Arslan Advocaten are ready to help you. We have the knowledge and experience to bring your case to a successful conclusion. Contact us for a free first consultation via our website: https://arslan.nl/contact/.
Need help? Our BKR-advocate will be happy to assist you. Contact us without obligation for a free first advice.
