Mortgage to Rent Scheme Funding

Dáil Éireann Debate, Tuesday - 23 October 2012

Tuesday, 23 October 2012

Questions (421)

Aengus Ó Snodaigh

Question:

421. Deputy Aengus Ó Snodaigh asked the Minister for the Environment, Community and Local Government the steps being taken to include more mortgage lenders, in particular sub-prime lenders, in the mortgage to rent scheme; and if he will list the mortgage providers operating here who are and are not participating in the scheme. [45829/12]

Written answers

Minister of State at the Department of the Environment, Community and Local Government

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:

- their mortgage has to have been deemed unsustainable under a Mortgage Arrears Resolution Process as provided for under the Central Bank’s Code of Conduct on Mortgage Arrears;

- they are agree able to a voluntary repossession of their home;

- they are eligible for social housing support; and

- they do not have significant positive equity in the property.

Additionally applicants must own the property, and it must have a current market value of less than €220,000 in the Dublin area or less than €180,000 in the rest of the country.

The property must be in good condition, in a suitable location and must suit the household’s needs. In addition applicants must not own any other property or have assets in excess of €20,000 and the net household annual income must not exceed a maximum of €35,000, depending on its location. The scheme operates on a collaborative basis between the borrower, lender and the approved housing body acquiring the property. It is anticipated that all lending institutions will participate in the scheme.