Banks must be compelled to engage with Mortgage to Rent Scheme
11 April 2018
Spokesperson on Finance, Public Expenditure and Reform, and the Arts
With Central Bank figures showing over 14,000 households in long term arrears and at risk of repossession, Labour spokesperson on Finance Joan Burton has said it is essential that banks engage pro-actively with the mortgage to rent scheme as figures show only 318 cases in total have been completed by the end of March.
Deputy Burton said:
"Those working with families in arrears looking for a solution that would allow them to stay in their home have consistently said that there is a problem with how banks are engaging with the mortgage to rent scheme.
"Where families are eligible it would appear that many banks are dragging their feet on allowing those cases move to the scheme. The mortgage to rent scheme provides the best solution for those who can no longer afford their loan repayments, as it ensures they retain their home.
"Figures from the Housing Agency show that by the end of March 2018, a total of 3,944 cases had been submitted, but less than 10% completed, with only a extra 10 done since the start of the year.
"However 2,955 of those were ineligible or terminated during the process, and 10% of those were not progressed due to over or under accommodation which is disappointing.
"In 88 cases, agreement on a sale could not be agreed, and while we don't know the reason, this is most likely due to the banks dragging their feet on agreeing a price.
"With a further 671 cases being actively progressed, this is a tiny proportion of the homeowners at risk of losing their home, and the impact this would have on the homelessness crisis.
"If reports continue to surface of banks and lenders not pro-actively engaging with the mortgage to rent scheme then the Minister for Finance, and the Minister for Housing must look at mechanisms that would compel them to."
Figures on the Mortgage to Rent scheme are available here from the Housing Agency: