Dáil Éireann Debate, Thursday - 7 December 2017
55. Deputy Sean Fleming asked the Minister for Finance if his attention has been drawn to the fact that banks insert into all mortgage-to-rent agreements that the bank or financial institution can come back to the person who participates in the scheme for the balance of the mortgage; and if he will make a statement on the matter. [52340/17]
Amharc ar fhreagraAs the Deputy will be aware, the Department of Finance does not have a role in administering the Mortgage to Rent (MTR) Scheme, which is the responsibility of the Department of Housing, Planning and Local Government and the Housing Agency.
The Central Bank have informed me that they do not have a role in relation to whether banks insert into all mortgage to rent legal documents that the bank or financial institution can come back to the person that participates in the scheme for the balance of the mortgage.
The Department of Housing, Planning and Local Government and the Housing Agency have informed me that they always make it clear in operating the MTR scheme that any debt remaining after the sale of the property by the lender to an Approved Housing Body (subsequent to its voluntary surrender by the borrower to their lender) is a contractual matter between the lender and the borrower. The operator of the scheme does not have sight of how lenders treat the residual debt and does not nor could it impose any obligation on lenders in this regard. Rather the focus of the scheme, which is a social housing option, is to keep people eligible for social housing support in their homes where possible.
