Cork TD says Mortgage to Rent scheme is failing

16 November 2015
By David O’Sullivan
david@TheCork.ie

As thousands await repossession, just 119 Mortgage to Rents approved

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.

michaelmcgrath

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.”

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