On foot of the recommendations of the Keane Report on mortgage arrears, the Government launched a mortgage to rent scheme on a pilot basis in February 2012. This scheme was extended nationally in June 2012, targeting those low income families whose mortgage situation is unsustainable and where there is little or no prospect of a significant change in circumstances in the foreseeable future. The scheme ensures that the family remains in their home, while ownership is transferred to an approved housing body who in turn rent it to the original owners.
Householders seeking to avail of the mortgage to rent scheme must meet the following criteria:
have had their mortgage deemed unsustainable under a Mortgage Arrears Resolution Process as provided for under the Central Bank's Code of Conduct on Mortgage Arrears;
agree to a voluntary repossession of their home;
be eligible for social housing support; and
not have significant positive equity in the property.
Limits on household income, property value and applicant assets also apply. Borrowers wishing to avail of this scheme may access further information on the Housing Agency website, www.housing.ie.
More than sixty cases are currently being processed under this scheme, with an expected take-up of approximately one hundred families in 2012.
The scheme will run for a period of three years, after which it will be reviewed.