Labour delivers for families in mortgage difficulties
Posted on June 28, 2012 at 03:51 PM
Today Labour honoured another promise to families in mortgage difficulties with the launch of the 'mortgage to rent' scheme by the Minister for Housing and Planning Deputy Jan O'Sullivan.
The scheme is specifically targeted at the low-income families whose mortgage situation is unsustainable and where there is little or no prospect of a significant change in circumstances in the foreseeable future.
Minister O'Sullivan explained how some families have been caught in a 'perfect storm' with their mortgage repayments having purchased when prices were much higher and since then have suffered a significant drop in family income.
"Many of these families now face the trauma of repossession. The Government, following on from the Keane Report, pledged to take action and today I am announcing the launch of a nationwide mortgage to rent scheme. The main aim of the mortgage to rent scheme is to give security and certainty to families.
"It removes the threat of repossession and the consequent upheaval that entails. Families can continue to live in their family home with security of tenure and certainty over the payments they must meet.
"It is not an easy route for families to embark on as it results in the surrender of ownership, but it does provide families with continuity and security."
The scheme was welcomed by Senator Aideen Haydeen, Chair of Threshold Housing Charity.
Senator Hayden said: "Mortgage to rent recognises the importance of the family home and the real benefits of keeping families in their own communities and children in their local schools. It is important to make sure that we don't make the current situation worse for families that are facing repossession and homelessness."
The scheme has been operating on a pilot basis since February with more than 60 cases currently going through various stages of the process.
The mortgage to rent scheme is an option for families who:
- Have had their mortgage position deemed unsustainable
- Are eligible for social housing
- Agree to the voluntary surrender of the property
- Are in negative equity
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