Mortgage To Rent Scheme Provides Certainty, Says Minister

The Government is determined to provide certainty and security for families who face the imminent prospect of repossession of their family home according to Minister for Housing and Planning, Jan O'Sullivan, TD.

Minister O'Sullivan was speaking today at the launch of the 'mortgage to rent' scheme. The scheme is specifically targeted at those low income families whose mortgage situation is unsustainable and where there is little or no prospect of a significant change in circumstances in the foreseeable future. The scheme ensures that the family remains in the home, paying rent, while ownership is transferred to an approved housing body.

"Some families have been caught in 'a perfect storm' in relation to mortgage repayments. They purchased when prices were much higher and in many cases the family income that made the repayments possible has dropped significantly, often through the loss of one or more wage packet. Many of these families now face the trauma of repossession. The Government, following on from the Keane Report, pledged to take action and today I am announcing the launch of a nationwide mortgage to rent scheme."

The mortgage to rent scheme is an option for families who:

•Have had their mortgage position deemed unsustainable

•Are eligible for social housing

•Agree to the voluntary repossession of the property

•Do not have significant positive equity

"The main aim of the mortgage to rent scheme is to give security and certainty to families. It removes the threat of repossession and the consequent upheaval that entails. Families can continue to live in their family home with security of tenure and certainty over the payments they must meet.

"The mortgage to rent scheme is targeted at those with a low family income who are facing repossession of a modest family home. It is not an easy route for families to embark on as it results in the surrender of ownership, but it does provide families with continuity and security."

(CD/GK)