Changes to the Mortgage-to-Rent Scheme | Fieldfisher
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Changes to the Mortgage-to-Rent Scheme

Conor Dunne



The Minister for Housing, Local Government and Heritage, Darragh O'Brien TD, has announced significant changes to the mortgage-to-rent scheme.

The scheme aims to enable borrowers in mortgage arrears to remain in their homes.
The property is voluntarily surrendered to the lender who immediately sells to an approved housing body. The borrower then becomes a tenant of the approved housing body, paying rent based on their income. The scheme is only available to those who qualify for social housing support and who have completed the Mortgage Arrears Resolution Process with their lender.

The key changes to the scheme, which take effect from 14 February 2022, are as follows:-
  • To be eligible for the scheme in Dublin your property could not be valued more than €395,000 if it is a house or €310,000 for an apartment, which will increase to €450,000 and €335,000 respectively;
  • For the remainder of the country, houses could not be valued at more than €305,000 while apartments could not exceed €220,000 in value. This will be increased to €345,000 and €230,000 respectively;
  • Previously, the property could not be in positive equity of more than €15,000. This will be adjusted by region to take into account changing market conditions across the country;
  • Relaxation of strict occupancy rules for those aged 65 and above and borrowers who have a disability or have a dependent with a disability.
These are welcome changes to the scheme, which aim to lead to an increase in uptake of the scheme and a reduction of borrowers in mortgage arrears across the country.

written by: Conor Dunne

Areas of Expertise

Real Estate