Catherine Murphy (Kildare North, Social Democrats)
Link to this: Individually | In context | Oireachtas source

55. To ask the Minister for Environment, Community and Local Government the strategic steps he is taking to manage the volume of mortgage to rent applications; the way he is streamlining the process for all stakeholders; the barriers he has encountered to the functioning scheme; and if he will make a statement on the matter. [18554/16]

Simon Coveney (Cork South Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Mortgage to Rent (MTR) scheme is a targeted intervention for those households in unsustainable mortgage arrears who are not in a position to meet their long-term housing needs and are therefore eligible for social housing support. The Housing Agency co-ordinates the operation of the scheme on behalf of my Department.

The scheme has performed well for the 162 families that continue to live in their homes and are now secure in the knowledge that they can afford to remain there. As at the end of May 2016, an additional 17 applications were with the lenders, who are seeking the consent of borrowers to share information, and for the carrying out of an independent valuation.

As part of the package of commitments on mortgage arrears announced by Government in May 2015, a number of amendments to the MTR scheme were made with the objective of enabling more properties to qualify for the scheme and make it more flexible and accessible to borrowers. Amendments made with effect from July 2015 include: valuation thresholds for permissible properties were increased; households in marginal positive equity were permitted as eligible; and flexibility was introduced to allow households who may be over-accommodated in their current house to be permitted. The funding available to approved housing bodies (AHBs) to purchase these units from lenders was also increased.

Arising from these changes, an increasing number of applications for MTR are now being received from lenders. This is likely due to the widening of the eligibility criteria but also is likely to arise because confidence and familiarity with the scheme is increasing on both the part of the lender and the borrower.

My Department, together with the Housing Agency, meets regularly with representatives of the main lenders in relation to the scheme and are constantly seeking to ensure its effective operation. In addition, my Department works with the Money Advice and Budgeting Service (MABS), the Citizens Information Bureau and the Departments of Justice and the Social Protection to ensure that the MTR is integrated in the communications with borrowers in mortgage difficulties.

While there are, of course, continuing operational challenges for the MTR scheme, including that the scheme must be offered by a lender to a borrower, my Department is committed to keeping the scheme under ongoing review, with the objective of keeping families in their homes in so far as is possible.