You are here: Home - News -

Scheme in Ireland launches to help struggling borrowers stay in their homes as tenants

by:
  • 27/09/2017
  • 0
Scheme in Ireland launches to help struggling borrowers stay in their homes as tenants
Borrowers who are deep in mortgage arrears may be able to stay in their homes as tenants, thanks to a new scheme in Ireland.

A deal has been agreed between AIB, the Irish Mortgage Holders Organisation and iCare Housing which will see the bank buy out borrowers who are unable to maintain their repayments, but allow them to remain in the property as a tenant.

AIB will give iCare – a not-for-profit housing body – €100m in order to buy the properties, via the Irish government’s mortgage-to-rent scheme, which are then let back to the existing occupiers on lengthy tenancies of up to 30 years.

Borrowers will need to meet certain criteria in order to take advantage of the scheme; it will initially only be available to people that qualify for social housing for example, while eligible properties must be worth less than €365,000 (£319,000).

If their circumstances change, they will be able to buy the property back from iCare at the same price iCare paid for it, which David Hall – one of the masterminds behind the scheme – says will ensure tenants keep up with their rent repayments.

Hall, who runs iCare, told the Irish Independent: ““This is the biggest mortgage arrears solution since the crash. It will apply to the most vulnerable and stop them losing their homes.

“The big issue now is housing, and not debt. People need somewhere to live, so it is about ensuring they do not end up with their homes repossessed.”

It is believed that there are currently around 30,000 borrowers in Ireland who are at least two years behind on their mortgage repayments.

There are 0 Comment(s)

Comments are closed.

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
  • RT @robjupp: Great day yesterday for donations to @MortSleepOut. With Gift Aid, we are now close to £17,000. It would be great to get to £2…

Read previous post:
Remortgage valuations hit record in August – Connells

Remortgaging was responsible for 37% of the valuations market in August – the highest percentage in more than 10 years...

Close