New Mortgage-To-Rent Scheme
A new scheme that will turn holders of hopelessly distressed mortgages into renters has been unveiled by Minister of State for Housing Jan O'Sullivan, the Irish Times reported. The Mortgage to Rent scheme will allow families remain in their home, but they will have to relinquish ownership of the property. The ownership of the house will be transferred to a housing agency financed by a 70 per cent loan from the original mortgage lender with the remainder coming from the State, which will take a 30 per cent equity stake in the house. A pilot project begun earlier this year has already been availed of by 60 families throughout the country, a little over 20 of those from Dublin. There is an upper limit to the market value of the house - at €220,000 for the capital and €180,000 elsewhere. Those who can avail of it are low-income families who otherwise would have qualified for social or local authority housing. At the scheme's announcement this afternoon, Ms O'Sullivan said it will help over 100 families this year and could eventually be geared up to help several thousands. She and her officials emphasised the "humane" aspect of the scheme in that families do not have to leave their homes. Read more.