The Mortgage to Rent Scheme can help people to stay in their homes after they have relinquished ownership of the property due to their inability to meet the mortgage repayments.
Thousands of people in Ireland cannot afford their mortgage. Falling into mortgage arrears puts them in danger of having their home repossessed and ultimately of being evicted. Naturally this is a very difficult experience for people, who have often lived there for many years and established roots in their local communities.
The Mortgage to Rent Scheme is designed to help these people by enabling them to stay in their home without the debt burden of owning the property.
The Mortgage to Rent process works like this:
- Borrower’s mortgage is deemed unsustainable
- Borrower qualifies for social housing based on the level of their income
- The house is deemed suitable to the borrower’s needs
- Borrower surrenders their home to lende
- Lender sells the property to an Approved Housing body or other qualifying participant of the Mortgage to Rent Schem
- Borrower becomes a tenant of the Approved Housing Body or Local Authority and pays an affordable rent
- Borrower retains the right to re-purchase the property in the future
The upshot of Mortgage to Rent is that the borrower remains in their home paying an affordable rent and their tenure is secure. Should their circumstances improve they can re-purchase the property in the future.
For more information on Mortgage to Rent please call the New Beginning team on 01-5240000.