The Mortgage to Rent (MTR) scheme provides for an Approved Housing Body (AHB) or since 2018 a private company, Home for Life, to acquire ownership of a property with an unsustainable private mortgage from a lender, which also enables the household to remain in their home as a social housing tenant. The scheme is an established part of the overall suite of social housing options and an important part of the mortgage arrears resolution process. The household must be eligible for social housing and the property must meet the appropriate standards for social housing.
To the end of March 2021, 1179 households with unsustainable private mortgages have completed the MTR scheme since its introduction nationally in 2013. The 1179 households in the scheme represent 1970 adults and 1699 children who have remained living in their homes and communities. There are currently 1079 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 concerned which can be either an AHB or Home for Life. I can neither compel a lender to sell a property at a particular price nor compel an AHB or Home for Life to purchase a property at a particular price. In relation to the specific case raised, I understand that a sale price has yet to be agreed between the lender and Home for Life.
While the Housing Agency as administrators of the scheme on my Department's behalf make every effort to encourage stakeholders to meet their individual timelines set out within the MTR process, cases will arise where agreeing a sale price between a lender and a MTR provider may become protracted. Where a sale price cannot be agreed, the case will be terminated.
Where a MTR application is active, it is important that the borrower continues to engage with their lender on their application and it is the lender who is the point of contact for the borrower throughout the MTR process.
A review of the MTR scheme undertaken in 2017 introduced a range of improvements to the eligibility criteria and its administration. In order to increase awareness and understanding of the scheme a new website, www.mortgagetorent.ie, was developed. In addition, new structures and arrangements were put in place to encourage a greater number of entities to take part in the scheme. As a result of the improvements implemented, an upward trend in case completions has been evident since 2018.
Building on the significant improvements already made to the scheme since 2017 and in line with the commitment in the Programme for Government to strengthen the scheme and ensure that it is helping those who need it, my Department is currently working closely with the Housing Agency to identify any further improvements required to the scheme.
