The Scheme is an option for people who have been engaged in the Mortgage Arrears Resolution Process (MARP) with their lender. Under the Mortgage to Rent Scheme, the mortgage holder will voluntarily surrender ownership of their home to their lender. A Housing Association will buy the home from the lender and become the mortgage holder’s landlord. The mortgage holder will no longer own the home but they will continue to live in it as a tenant of the Housing Association. The mortgage holder will pay an income related rent set by the Local Authority. There is the potential option to buy back the home after a period of 5 years if the financial situation improves & the Housing Association will look after property maintenance issues as set out in the tenancy agreement.
To qualify for the mortgage-to-rent scheme:
·The mortgage holder must be involved in the Mortgage Arrears Resolution Process (MARP) with their lender and agree that they can no longer afford to pay their mortgage loan now or in the future.
·The mortgage holder must be approved for the Mortgage to Rent Scheme by their lender.
·The home must be approved by the Housing Association as suitable.
·The mortgage holder must own the property they live in, with a current market value no more than €365,000 for a house and €310,000 for an apartment or townhouse in the areas of Dublin, Kildare, Meath, Wicklow, Louth, Cork and Galway and €280,000 for a house and €210,000 for an apartment or townhouse in the rest of the country.
·The mortgage holder must not own any other property or have assets in excess of €20,000.
·The net household income must not exceed €25,000*, €30,000* or €35,000* a year, depending on what part of the country the mortgage holder lives in (net household income is the household income after taxes and social insurance (PRSI) have been taken off). (*Additional allowances for children).
·The mortgage holder must have the long-term right to remain in Ireland.
·The mortgage holder voluntarily surrenders possession of their home to their mortgage lender who immediately sells it to a housing association who will then rent it back to the mortgage holder.
·The mortgage holder will no longer own the property but they can continue living in their home as a social housing tenant and have a tenancy agreement with the housing association