Dáil Éireann Debate, Wednesday - 20 July 2016
188. Deputy Niall Collins asked the Minister for the Environment, Community and Local Government the process to be followed by a distressed mortgage holder to be accepted onto the mortgage to rent scheme; if this scheme caters for clients who are undergoing bankruptcy; and if he will make a statement on the matter. [22995/16]
View answerThe approved housing body (AHB) Mortgage to Rent (MTR) scheme is a Government initiative offered as a support to householders who find themselves unable to continue with their mortgage commitments. It was developed as part of the implementation of the recommendations of the Keane Report in 2011 and is one part of a concerted effort across the whole of Government to tackle the mortgage arrears crisis.
The Scheme targets the most acute arrears cases where a situation is unsustainable and was never contemplated as a solution for the vast majority of arrears cases. Under this initiative a household with mortgage difficulties moves from being a homeowner to being a social housing tenant. The householder voluntarily surrenders the property to their lender who, in turn, sells the property to an Approved Housing Body (AHB). The AHB becomes the landlord and the household remains in the family home.
The lender is the main point of contact for the borrower and only lenders can put an application forward for the Scheme. The Money Advice and Budgeting Service (MABS) can advise borrowers in mortgage distress how to access the Scheme, but it is up to the lender to offer the borrower access to it. I would urge any borrower who is having difficulty paying their mortgage to contact MABS to better understand the options that are available to them.
While the MTR scheme is the responsibility of my Department, the Housing Agency co-ordinates the day to day operation of it on my Department’s behalf. Information on the MTR process is available on the Housing Agency website: http://www.housing.ie/Housing-Information/Mortgage-to-Rent-Scheme.
I can confirm that if a borrower is involved in bankruptcy proceedings this does not make them ineligible for the MTR Scheme.
The Government’s Rebuilding Ireland Action Plan for Housing and Homelessness, published on 19 July 2016, contains a number of actions that build on recent reforms focused on ensuring that there are a range sustainable long term debt resolution options for borrowers. Included in the Action Plan is a specific commitment to examine how the MTR scheme can be improved to facilitate more households accessing the Scheme. This examination will include alternative financing, purchasing and contractual arrangements, as well options to encourage greater flexibility from lending institutions in supporting MTR.
