€20million allocated to assist distressed local authority mortgage holders.

“I think this is very welcome news for local authority mortgage holders who find themselves in arrears. The fact that approximately 31% of mortgage holders in the local authority sector are in arrears shows that a solution was urgently required. These households will be given access to the “mortgage-to-rent” scheme which is available to other mortgage holders in arrears. 

The scheme enables low to middle income families in an unsustainable mortgage situation to remain in their home. This €20m fund will allow local authorities to assist households by transferring ownership of the home to the local authority and the family will pay a differential rent.  The Arrears Support Unit of each local authority encourages households to engage early with them to seek advice and support as soon as possible. Local authority mortgages are, in the main, taken up by tenants to purchase their existing local authority home or to enter into a shared ownership arrangement with the local authority. To be considered for the mortgage to rent scheme, mortgage holders must satisfy a number of criteria including:

·         The mortgage must be deemed unsustainable with any change unlikely in the future.

·         The mortgage holder must be engaging with the Arrears Support Unit in the local authority.

·         Property must be the sole property of the mortgage holder and the primary residence of the mortgage holder.

·         Property must have a current market value of less than €220,000 in the greater Dublin area and not more than €180,000 in the rest of the country.

·         The property must be in negative equity.

·         Households must be eligible for social housing support from the local authority and net household income must not exceed a maximum of €25,000, €30,000 or €35,000 a year depending on where a family is located.”