Mortgage to Rent
Note: You must apply for Mortgage to Rent through your lender
What is Mortgage to Rent?
A Government scheme to allow people who are in danger of losing their home to stay in their home as a social housing tenant. Under this scheme you voluntarily surrender your home to the bank and the home is bought by an Approved Housing Body (AHB) or a private company. If an AHB purchases the home, you become a tenant of the AHB and if a private company purchases the home you become a tenant of the Local Authority.
Who qualifies for Mortgage to Rent?
In order to qualify for the scheme, you must meet the following criteria:
• you must be in mortgage arrears and have completed the Mortgage Arrears resolution process,
• you must be eligible for social housing support,
• the home must be valued at no more than €450,000 for a house or €335,000 for an apartment,
• the home must be in negative equity or be within the limits of positive equity allowed under the scheme (equity must be no more than 10% of the open market value to a maximum of €35,0000,
• the Family home must be the only property that you own
• the home must suit your needs and not be over or under accommodated according to our guidelines plus 2 two bedrooms.
How does the process work?
You may approach the lender about the scheme and if the lender believes that you may qualify, the following process is followed:
• The Lender provides you with the Mortgage to Rent application form and letter of consent. You must sign this letter of consent within two weeks to say you wish to proceed and the lender can share your details with third parties (us, the AHB or Private Company that may purchase your property).
• The Lender will give you a letter stating that your mortgage is unsustainable. You must bring this letter to the Council when you apply for Social Housing Support. The Social Housing Support application is assessed by the Allocation Section within 4 weeks, if all information has been received.
• If you are approved for Social Housing Support by us, your Mortgage to Rent Application is sent by your lender to the Housing Agency.
• The Housing Agency checks that the Mortgage to Rent application meets the criteria of the scheme by:
- Conducting an independent valuation of the home to ensure that it is valued within the thresholds of the scheme.
- Checking with the Council that the home meets your needs and that the rents are acceptable to us.
• The AHB or Private Company interested in purchasing the home will conduct a survey and valuation of the home. You then make an offer to your lender
• If the lender accepts the offer, you sign a letter to say that you are happy to go ahead.
• The AHB or the Council send you a draft tenancy agreement to sign.
• Once the sale closes, the home is sold to the AHB or the Private Company and at the same time you become a social housing tenant.
• You will be assessed for rent based on your household income. The rent will be the same regardless of whether you are a tenant of the Council or an AHB.
Benefits of the scheme
• You get to stay in your home at a reasonable rent which you can afford.
• You do not have to worry about the maintenance of the house as the buyer looks after that in line with your tenancy agreement.
• The price that your house is bought for will be offset against any outstanding debt, and you come to an arrangement with our lender to pay the debt that is remaining (if any).
• You have the potential to buy back your home if your situation improves.