Dáil Éireann Debate, Tuesday - 17 November 2020
351. Deputy Brendan Griffin asked the Minister for Housing, Local Government and Heritage if time limits will be put on the processing of mortgage to rent applications by financial institutions to prevent further distress being placed on borrowers and their families (details supplied); and if he will make a statement on the matter. [36533/20]
View answerThe Mortgage to Rent (MTR) scheme introduced in 2012 is targeted at supporting households in mortgage arrears who: have had their mortgage position deemed unsustainable by their lender under the Mortgage Arrears Resolution Process (MARP); agree to the voluntary surrender of their home and are deemed eligible for social housing support. The property in question must also meet certain eligibility criteria.
Up to the end of October 2020, 825 households with unsustainable private mortgages have completed the MTR scheme since its introduction nationally in 2013. The 825 households in the scheme represent 1,400 adults and 1,325 children who have remained living in their homes and communities. There are currently 1,334 active cases being progressed under the scheme.
Given the nature of the individual property transaction underpinning MTR, the decision to purchase a property under the MTR scheme is a matter for the MTR provider which can be either an Approved Housing Body or a private company.
A Review of the Mortgage to Rent Scheme (MTR) for borrowers of commercial private lending institutions published in February 2017 explored the avenues and impediments to participation in the scheme and identified a number of actions to make the scheme work better for borrowers.
The eligibility requirements of the scheme were widened in 2017 and 2019 to include a greater number of borrowers and a larger number of property types and new structures and arrangements have been put in place to encourage a greater number of entities to take part. Subsequently, there was an upward trend in the number of completed cases from late 2018.
The Programme for Government includes a commitment to strengthen the Mortgage to Rent Scheme and ensure that it is helping those who need it. Building on the significant improvements already made to the scheme since 2017, my Department is currently working closely with the Housing Agency to identify any further improvements required to the scheme. I expect an update on this work before year end.
Where a MTR application is active, it is important that borrower(s) continue to engage with their lender on their application.
