Have you recently signed a credit contract? Whether it’s a mortgage or a consumer credit. Signing this contract creates obligations on your part, and non-compliance can lead to unfortunate consequences (such as a credit report). In this article, we discuss the consequences of being listed at the National Bank of Belgium as well as practical solutions that can help you get out of this situation.
Obligations related to signing a credit contract
As soon as you have signed a credit agreement, the credit company is obliged to transfer the borrowed amount to your current account. Note that for obvious security reasons, you will never receive money hand-to-hand.
The borrower, on the other hand, is obliged to repay the credit, i.e., the borrowed amount plus the agreed interest and fees. To get a precise idea of the total cost of your credit, use our credit simulator. The interest rate will depend on the duration of your credit.
You will need to start repaying your credit within the month of signing your contract and no later than one month after signing.
Credit companies are obliged to register your credit contract with the Central Credit Register for Individuals of the National Bank of Belgium.
Consequences of non-payment
In case of non-payment of your credit after two installments, the credit company is obliged to report your credit to the Central Credit Register for Individuals and to list you with the National Bank of Belgium.
This situation has several consequences:
- You will be obliged to repay your credit immediately, plus interest and fees;
- You will be listed with the National Bank of Belgium until you have repaid your credit, interest, and all fees;
- You will remain listed for one year after you have repaid the credit, interest, and fees;
- You will no longer have access to the credit market during this period.
What are the solutions in case of payment difficulties?
Do not wait to be listed. As soon as you know that you will inevitably encounter payment difficulties, contact your broker. We can offer you several solutions:
- We can attempt a credit buyback to increase the duration of your repayments and thus reduce your monthly premium;
- In case of multiple credits, we can attempt a credit consolidation to reduce your overall monthly premium.
Is it possible to borrow if you are listed with the National Bank of Belgium?
In principle, no. You can no longer borrow for a full year after all your credit, interest, and fees have been fully repaid.
However, there is a solution via the owner’s credit.
The owner’s credit is a mortgage.
Under what conditions can I take out an owner’s credit?
You can take out an owner’s credit under the following conditions:
- Be domiciled in Belgium or Luxembourg;
- Be the owner of a real estate property in Belgium or Luxembourg;
- Grant a mortgage on this real estate property;
- The real estate property must be fully paid off and free of all charges: however, we can consider a mortgage buyback to pay off the current mortgage and conclude a new credit;
- The loan amount must be at least €25,000 to cover the costs of the new contract.
