The Mortgage to Rent Scheme for borrowers of private lending institutions is targeted at those households in arrears who are eligible for social housing support, whose mortgage has been deemed unsustainable in accordance with the Code of Conduct on Mortgage Arrears and Mortgage Arrears Resolution Process enforced by the Central Bank.
Under the Mortgage to Rent scheme, a household with mortgage arrears goes from being a homeowner to becoming a social housing tenant. The borrower voluntarily surrenders their property to their lender who in turn sells the property to an Approved Housing Body (AHB) or another approved company called Home For Life. This facilitates the household remaining in their home as social housing tenants paying an affordable rent based on their income. The AHB or Home For Life receives monthly payments from the local authority in accordance with the agreement(s) they enter into with the local authority for the length of those agreements.
In terms of the mortgages associated with properties that progress through the MTR scheme, the proceeds from the sale of the property go towards the borrower’s mortgage debt. Any debt remaining after the sale of the property is a contractual matter between the lender and the borrower. The regulation of the sale of mortgage assets is a matter for the Minister for Finance and the Central Bank.