Mort­gage to rent scheme limit up­dated

Wicklow People (West Edition) - - NEWS - By EIMEAR DODD

HOME­OWN­ERS in sig­nif­i­cant mort­gage dis­tress in Wick­low have been given fresh hope after the county’s up­per hous­ing val­u­a­tion limit for the mort­gage-to-rent (MTR) scheme was in­creased to €395,000.

This €30,000 rise from the pre­vi­ous val­u­a­tion limit of €365,000 means more home­own­ers who are at risk of los­ing their homes due to mort­gage ar­rears scheme may now reach the ex­panded thresh­old for the the scheme.

How­ever, the up­per limit on val­u­a­tion for apart­ments re­mains at the same level of €310,000, the De­part­ment of Hous­ing, Plan­ning and Lo­cal Government con­firmed.

‘This sends a message out to those in fi­nan­cial trou­ble that there is a way back and by in­creas­ing the thresh­old, the Government is show­ing it be­lieves mort­gage-to-rent is a scheme that can work for all sides,’ said Bray man Paul Cun­ning­ham, CEO of Home For Life, a MTR op­er­a­tor.

The MTR scheme aims to keep own­ers with un­sus­tain­able hous­ing loan debt in their cur­rent homes as long-term ten­ants of their lo­cal author­ity.

It lets home­own­ers in sig­nif­i­cant mort­gage dif­fi­culty switch from own­ing their home to rent­ing their home as so­cial hous­ing ten­ants sub­ject to meet­ing the cri­te­ria of the scheme. The MTR scheme is a so­cial hous­ing op­tion only avail­able if the home­owner is el­i­gi­ble for so­cial hous­ing sup­port and their mort­gage is un­sus­tain­able. The scheme is over­seen by the De­part­ment of Hous­ing, Plan­ning and Lo­cal Government and is ad­min­is­tered by the Hous­ing Agency.

Min­is­ter of State with Spe­cial Re­spon­si­bil­ity for Hous­ing and Ur­ban Devel­op­ment, Damien English, said the changes would en­able more prop­er­ties to qual­ify for the scheme. The Min­is­ter also wel­comed the rise in the num­ber of mort­gage-to-rent cases com­plet­ing.

‘This con­firms that the scheme is a good solution to un­sus­tain­able mort­gage ar­rears and one that is be­ing recog­nised as such by the bor­row­ers,’ said Min­is­ter English.

Paul Cun­ning­ham.

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