Mortgage to Rent in Insolvency
What is Mortgage to Rent or MTR?
Mortgage to Rent (MTR) is a government-backed scheme designed to help homeowners who are at risk of losing their homes due to mortgage arrears. Under this scheme, eligible homeowners can transfer the ownership of their property to a housing association or a local authority. In return, they become tenants and pay an affordable rent based on their income. MTR allows homeowners to stay in their homes while relieving the burden of mortgage payments.
When affordability is an issue, Mortgage to Rent is a viable option which allows you to remain in your home.
The Benefits of MTR
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Home Retention: MTR allows homeowners to stay in their homes, providing stability and continuity for themselves and their families.
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Affordable Rent: Under MTR, the rent is based on the homeowner’s income, making it more affordable and manageable compared to mortgage payments. You pay a social housing rent which is the lowest rent level in the country. It is directly linked to your income and adjusted accordingly.
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Debt Relief: By transferring ownership to a housing association or local authority, homeowners are relieved of their mortgage debt, offering a fresh start and financial stability. In conjunction with a Personal Insolvency Arrangement (PIA) you can be discharged of all your debts including your mortgage, personal loans, credit cards etc.
Am I Eligible for MTR?
Call us today to discuss your eligibility on 1800 990 099.
- Mortgage –
- Are you unable to meet your mortgage payments?
- Have you engaged with your lender?
- Property –
- Is your property in negative equity or within the equity limits?
- Is your family home your only property?
- Is the property appropriate for your needs i.e. not over or under accommodated.
- Is your home worth no more than €450,000 for a house and €335,000 for an apartment or townhouse in the areas of Dublin, Kildare, Meath, Wicklow, Louth, Cork and Galway?
- Or €345,000 for a house and €230,000 for an apartment or townhouse in the rest of the country
- Household
- Are you eligible for Social Housing Support?
- Is your household income below the thresholds? (€30k-40k per year depending on location)
The full terms can be found in the MTR Brochure
Frequently Asked Questions on MTR
Who will own my home?
The ownership of the property will transfer to an Approved Housing Body (AHB). Your mortgage will be discharged.
What rent will I pay?
You will pay an income based rent calculated under your local authority’s Differential Rent Scheme.
Can I buy the property back?
Yes. After 5 years, if your financial situation improves, you can buy back the property.
Who will be responsible for the maintenance of the property?
You will not be responsible for the maintenance of the property. In the event of a repair requirement i.e. roof leaking or boiler issues, the Approved Housing Body will be responsible.
How long is the lease?
Generally speaking the initial lease is for 25 years. You are a social housing tenant with a right to have your housing needs met by the local authority indefinitely. If your needs change, the local authority will provide alternative accommodation that meets these needs.
Conclusion
A Personal Insolvency Arrangement incorporating Mortgage to Rent (MTR) can be an ideal solution for a household facing mortgage arrears. You remain in your home and your housing payment is directly linked to your income to ensure affordability. Your mortgage will be fully discharged as well as any other legacy debts.
If you are facing mortgage arrears and wish to discuss your eligibility for this scheme, please contact us on 1800 990 099 or click the button below to schedule a call back.
