Just 88 transactions completed to date, only two in North-West
‘Scheme must be radically overhauled’
Sligo News File Online
Only two mortgage-to-rent scheme cases have been completed in the North West since the scheme was launched in 2012. That’s according to Fianna Fail Senator, Marc MacSharry who has called for the scheme to be radically overhauled
He said that “in theory” the scheme was designed to cater for families who face losing their homes owing to inability to meet mortgage repayments.
While the family will suffer loss of ownership, the scheme enables them to live in the home, and instead of a mortgage “will pay a rent to an approved housing body, such as a voluntary housing association.”
But, he said, figures supplied to Fianna Fáil by the Environment Minister Kelly show that nationwide “just 88 mortgage-to-rent transactions have been fully completed to date.
“In the North West region there have only been 2 completions, one in Leitrim and one in Cavan, over the past three years. Against the backdrop of recently published data from the Central Bank showing that over 30,000 families may lose their home, this is a truly abysmal performance by the mortgage-to-rent scheme.
“With thousands of repossession proceedings in the system, it is deeply concerning that the Government’s mortgage-to-rent scheme is failing miserably to provide a safety net for those in arrears facing the prospect of losing their home. The Government needs to urgently review the scheme, remove the unnecessary bureaucracy and complexity inherent in it, and make it workable.
“I have been trying to work through the scheme on behalf of a number of families in mortgage distress and I have to say I have found it to be a bureaucratic nightmare.
“There is a lot of spin coming from the government ahead of an expected announcement of measures relating to mortgage arrears and the personal insolvency service. As part of this announcement, the government needs to accept the mortgage-to-rent scheme as presently designed is simply not working and it must radically overhaul the scheme to make it fit for purpose.”