Cluid Housing, Ireland’s largest approved housing body, has announced the completion of the country’s first sale of a mortgage to rent property (MTR) back to the original owner describing it as a “very satisfying outcome for everyone involved”.
First introduced in 2012, the Mortgage to Rent Scheme aims to provide struggling mortgage holders with the option of staying in their home, albeit as social tenants rather than as home owners.
To be eligible for the scheme, a household must be eligible for social housing support with their local council. The mortgage holder then surrenders their dwelling property to their lending institution who sells the property to an Approved Housing Body (“AHB”). The AHB in turn rents the property back to the household at an affordable rent, based on the household’s income with the now tenant retaining a right to buy the property back after 5 years.
That we are now beginning to see households being able to avail of the buy-back option is a welcome development for the scheme which has faced criticism in the past.