More people with mortgage arrears will have the chance to stay in their homes under a new revised scheme announced by the Government today.
Housing Minister Darragh O'Brien is bringing changes to the 'Mortgage to Rent' scheme, which allows successful applicants to remain in their home as a social housing tenant with the state stepping in and buying the property.
The MTR scheme offers households in acute, unsustainable mortgage arrears, with little or no prospect of a significant change in circumstances, the chance to surrender a property to a lender and in turn become a social housing tenant.
The key changes proposed are an increase to the positive equity limit, an update of purchase price thresholds, and additional flexibility in the number of allowable bedrooms in a dwelling.
Changes to the number of bedrooms in a property permitted under the scheme is targeted at helping borrowers aged over 65 and those with a disability.
The updates to the scheme are being brought forward to "reflect current housing market conditions", and the aim of the new scheme plans are to ensure it is "helping those who need it" with a target of 1,000 solutions set per year.
In 2021, 678 borrowers availed of the scheme, more than three times the amount of borrowers (196) who availed of the scheme in 2019.
Announcing the changes at an event in St. Finian’s Crescent, Lucan, Co Dublin held with iCare Housing, one of the non-profit Approved Housing Bodies (AHBs) who participate in the MTR scheme, Minister O’Brien said: “These changes will make life easier for many households in mortgage distress.
"For someone in mortgage arrears to lose their home is hugely difficult and stressful. Mortgage to Rent provides a solution to a complex problem by giving a person or family the option of remaining in their own home despite acute mortgage difficulties.
“It is the Government’s objective to keep people in their homes where it is sustainable and the Mortgage to Rent scheme supports that objective. Today’s changes position the scheme to provide a solution for 1,000 families per year from 2022, approximately 50% more than the number of completed cases in 2021, and towards a trebling of the number in 2020.
He added: “It’s clear that there is continued demand for the scheme and I will keep the impact of these new changes under review and make future improvements if necessary. Ultimately we want the use of this scheme to be a long-term sustainable solution for the families and individuals for whom it is designed to assist.”
To get the latest breaking news straight to your inbox, sign up for our free newsletter
