Michael Creed (Cork North West, Fine Gael)
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509. To ask the Minister for Environment, Community and Local Government the number of residential mortgages approved under the mortgage to rent scheme to date; and if he will make a statement on the matter. [3779/15]

Alan Kelly (Tipperary North, Labour)
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There are currently two mortgage-to-rent schemes in operation through my Department. A scheme exists whereby a local authority (LA) can acquire ownership of properties with unsustainable local authority mortgages, thus enabling the household to remain in their home as a social housing tenant (LA- mortgage-to-rent). The other scheme provides for an Approved Housing Body (AHB) to acquire ownership of a property with an unsustainable private mortgage, which also enables the household to remain in their home as a social housing tenant (AHB-mortgage-to-rent). Both schemes are designed to assist families with income difficulties whose mortgages are now unsustainable, and where there is little or no prospect of a significant change in circumstances in the foreseeable future. To be eligible for the AHB-mortgage-to-rent scheme a household must have had their mortgage position deemed unsustainable under the Mortgage Arrears Resolution Process, agree to the voluntary surrender of their home, be in negative equity, and be deemed eligible for social housing in accordance with section 20 of the Housing (Miscellaneous Provisions) Act, 2009.

A total of 2,598 cases had been submitted by the end of December 2014 under the AHB-mortgage-to-rent scheme. Of these 1,040 were ineligible or terminated during the process, of which 276 cases were not progressed because the household in question was deemed to be over or under accommodated. Agreement on the sale could not be agreed on a further 46 cases. Of the remaining cases submitted, 68 have been completed, 1,002 are currently with the lenders who are seeking the consent of borrowers to share information and for the carrying out of an independent valuation, and the remaining 442 are actively being progressed.My Department has issued funding approval in respect of 119 cases.

The Local Authority Mortgage to Rent (LAMTR) scheme, which was rolled out nationally in February 2014, allows local authorities to offer the mortgage to rent scheme to local authority mortgage holders with unsustainable mortgages. The national roll-out followed a pilot scheme in 2013 under which 18 households were assisted. In 2014, a further 64 households in distress with local authority mortgage arrears were assisted through the scheme, which continues to operate.

My Department issued revised guidelines to local authorities for dealing with mortgage arrears within the local authority sector in June 2014. Dealing with Mortgage Arrears – A Guide for Local Authorities is available on my Department’s website at:

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The Mortgage Arrears Resolution Process, already in place in respect of commercial mortgages, is now being implemented across all local authorities. In cases of acute mortgage distress, homeowners also have the option of seeking to avail of the legal process now also in place to deal with personal insolvency.