Peadar Tóibín
Question:71. Deputy Peadar Tóibín asked the Minister for the Environment, Community and Local Government his plans to make the mortgage to rent scheme more accessible for persons struggling to keep their home. [46201/12]
View answerTuesday, 23 October 2012
Questions (71)
Written answers
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.
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, be 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 terms of the scheme are deemed adequate to address the target group of borrowers for whom it was devised and there are no plans to amend those terms currently.