As thousands of family homes are in the pipeline for repossession, a paltry 119 Mortgage-to-Rent transactions have been approved nationally so far, according to data released to Fianna Fáil Spokesperson on Finance Michael McGrath.
Deputy McGrath stated, “In theory, the Mortgage-to-Rent scheme exists to provide a safety net for families who are set to lose their home because of mortgage arrears. Under the scheme, the family will lose the ownership of the home but will continue to live in it. Instead of paying a mortgage, the family will pay a rent to an approved housing body, such as a voluntary housing association.
“Figures supplied to me by the Minister for the Environment Alan Kelly show that just 119 Mortgage-to-Rent transactions have been approved nationwide. Against the backdrop of 38,000 family home mortgages in arrears of two years or so, this is a truly abysmal performance by the Mortgage-to-Rent scheme.
“With thousands of repossession proceedings in the system, it is deeply concerning that the Government’s Mortgage-to-Rent scheme is failing miserably to provide a safety net for those in arrears facing the prospect of losing their home. The Government needs to urgently review the scheme, remove the unnecessary bureaucracy and complexity inherent in it, and make it workable. I have been trying to work through the scheme on behalf of a number of families in mortgage distress and I have to say I have found it to be a bureaucratic nightmare.
“We have been promised all sorts of things from this government to help those struggling with the mortgage repayments. The government has failed miserably to deliver so far. A good start would be to overhaul the Mortgage-to-Rent scheme for once and for all and make it fit for purpose.”
Question No. 519
To ask the Minister for the Environment, Community and Local Government the number of mortgage-to-rent transactions that have been fully completed to date; and if he will make a statement on the matter.
– Michael McGrath.
For WRITTEN answer on Tuesday, 10th November, 2015.
Ref No: 39347/15
Minister for the Environment, Community and Local Government (Deputy Alan Kelly)
Under the Approved Housing Body (AHB) Mortgage to Rent Scheme a total of 3,120 cases were considered to the end of October 2015. Of these, 2,298 were ineligible or terminated during the process, including 282 cases not progressed because the household in question was deemed to be over or under accommodated, 869 cases withdrawn by the lender involved during the process, 206 applications found to have been submitted in duplicate by the lender, and 941 cases that did not qualify for a range of reasons including the householder’s circumstances improving during the process, no social housing demand in the area, the householder’s income over the set limits and poor condition of the property.
Of the remaining 822 cases, agreement on the sale could not be reached on 49 cases, 20 are currently with the lenders who are seeking the consent of borrowers to share information and for the carrying out of an independent valuation, 634 are actively being progressed and 119 cases have been approved.