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Mortgage to Rent Scheme Administration

Dáil Éireann Debate, Tuesday - 16 July 2013

Tuesday, 16 July 2013

Questions (250)

Joan Collins

Question:

250. Deputy Joan Collins asked the Minister for Finance the number of lenders operating in the Irish property market who are prepared to operate the mortgage to rent scheme; the number of mortgage restructurings which have been initiated by lenders under the mortgage to rent scheme; and the number of split mortgages with the parking of both capital and interest payments which lenders have offered under the mortgage arrears resolution process. [34655/13]

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Written answers

The Mortgage to Rent scheme is a Government initiative to help homeowners who are at risk of losing their homes due to mortgage arrears. A pilot scheme was established in February 2012 and 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 will enable eligible families to remain in their homes, while ownership is transferred to an approved housing body which, in turn, rents it to the original owners. The Housing Agency, which manages the scheme, has advised that the lenders currently operating the scheme are:

- AIB

- EBS

- BOI

- PTSB

- KBCI

- Pepper

- Start Mortgages

- Nua Homeloans

- Ulster Bank

- Danske Bank

- Haven Mortgages.

The Housing Agency has advised me that, based on the latest available information, 1,289 cases have been submitted by lenders and of these, 847 are still in the system, with a total of 510 approved for customer contact.

The necessary overall strategy and building blocks to address the mortgage arrears problem are now in place. These include the Central Bank mortgage restructuring targets initiative, the new Code of Conduct on Mortgage Arrears, the fundamental change to personal insolvency legislation, including the provision of new, more accessible and less penal resolution mechanisms to debtors, as well as a comprehensive mortgage information and advice service.

The onus is now on lenders to move to address individual arrears cases in a comprehensive and speedy manner. The Deputy will be aware that the latest Central Bank data on mortgage arrears and repossessions shows that at end March 2013 there were 144 split mortgage restructures. I expect the banks to increase the number of “split mortgage” and the other long-term restructured mortgage arrangements over the remainder of this year.

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