Dáil Éireann Debate, Wednesday - 22 November 2023
100. Deputy Patricia Ryan asked the Minister for Housing, Local Government and Heritage if he has considered extending the mortgage-to-rent scheme to require vulture funds which seek repossession of family homes to offer long-term tenancies as an option for those borrowers in arrears; and if he will make a statement on the matter. [51558/23]
View answerThe Mortgage to Rent (MTR) scheme was introduced in 2012 for borrowers of all commercial lending institutions and is targeted at those households in mortgage arrears who have had their mortgage position deemed unsustainable by their lender under the Mortgage Arrears Resolution Process (MARP), who agree to the voluntary surrender of their home and who have very limited options, if any, to meet their long-term housing needs themselves. In addition, the household must be deemed eligible for social housing support. The concept of the scheme is that a household with an unsustainable mortgage goes from being a homeowner to being a social housing tenant.
Under the scheme, the borrower voluntarily gives up ownership of their home to their mortgage lender. An approved housing body (also known as housing associations or voluntary housing associations) or private company can buy the property after it is surrendered to the lender. The borrower no longer owns their home but continues to live there as a tenant of the local authority or approved housing body. They pay an affordable rent based on their income. To qualify for the Mortgage to Rent scheme, an applicant’s mortgage, property and household income must all meet the eligibility criteria. An individual’s mortgage lender is the main point of contact for this scheme and potential applicants should discuss the scheme with their lender to see if it is a possible solution to their situation.
A guide to the Mortgage to Rent scheme, which details the eligibility criteria for the scheme, is available on the Mortgage to Rent website https://mortgagetorent.ie/ . The guide also provides details on the application process and steps involved.
