Why the mortgage deed registration is always higher
If you are no longer fulfilling your mortgage payments, the amount of debt will increase, as the lender will incur extra costs to still allow you pay the mortgage amount due. Think of costs for fines, the interest amount, or even a bailiff. The lender is not looking to pay these costs out of their own pocket, which is why the mortgage deed registration is always higher. This is permitted up to a maximum of the stated amount as a principal sum defined within the mortgage deed.
Right of first mortgage
If you can no longer meet your payment obligations, the first right of mortgage will take effect. This means that if you are obliged to sell your house, the proceeds will first go to the lender. The first right of mortgage grants the bank priority over other parties such as the Belastingdienst (Dutch nations tax administration). This is stated in the mortgage deed and is never higher than the amount stated in the deed. In our example, that’s €700,000.
Good to know: often the lender will not let it come to this amount; they are more likely to intervene at an earlier stage, and proceed towards an enforced sale of the property.
Advice about your mortgage and mortgage deed registration
Are you looking for a mortgage that is suitable for you, and do you have any questions about the mortgage deed registration? Feel free to set up a no-obligation phone appointment with us, we’ll be happy to help you.
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