Dáil Éireann Debate, Wednesday - 19 December 2018
583. Deputy Michael McGrath asked the Minister for Housing, Planning and Local Government if an analysis has taken place on the reason 1,162 applications for the mortgage-to-rent scheme were withdrawn; the breakdown of these reasons; the steps taken to reduce the number; and if he will make a statement on the matter. [53957/18]
Amharc ar fhreagraTo the end of Q3 2018, the number of Mortgage to Rent (MTR) applications withdrawn was 1,162. All withdrawals are notified by the lender and the underlying reasons for withdrawal are not indicated. However, it is known that the 1,162 cases included some 500 applications that were incorrectly submitted by lenders in the early stages of the scheme when lenders were not familiar with the scheme's purpose and operation.
Not all MTR applications will develop into fully completed transactions given the understandable reluctance of those in mortgage arrears to lose ownership of their houses. Such a decision cannot be taken lightly and so the process allows the borrower enough time to consider the option of MTR. If other options rather than losing home ownership are put forward by the lender, a borrower is more likely to avail of these other options. This is particularly the case in the context of a now improving economy.
A Review of the MTR scheme, published on 8 February 2017, introduced a range of amendments to the eligibility criteria and administration of the scheme in order to improve its operation. The Review, available at the following link: http://rebuildingireland.ie/news/changes-in-mortgage-to-rent-scheme/, explored the avenues and impediments to participation in the scheme and recommended a number of actions to make the scheme work better for borrowers. My Department and the Housing Agency are working with all stakeholders to ensure that the actions set out in the Review are being effectively implemented to benefit a greater number of households. The eligibility requirements of the scheme were widened to include a greater number of borrowers and a larger number of property types. Increasing awareness and understanding of the scheme has been a priority and a new website - www.mortgagetorent.ie - dedicated to guiding and advising borrowers has been developed. In addition, new structures and arrangements have been put in place to encourage a greater number of entities to take part in the scheme.
It is the case and will continue to be the case that MTR applications may be withdrawn by the borrower or the lender. However, the implementation of the resulting actions from the Review means that MTR can be a long-term solution for more households in mortgage distress.
