Mortgage to rent

Mortgage to Rent (MTR) Scheme

The Mortgage to Rent (MTR) scheme permits those struggling with mortgage repayments to switch from owning their own home to renting it as a social housing tenant, provided they meet the criteria for qualifying for social housing.

An approved housing body (AHB) or a private company approved by the Department of Housing, Local Government and Heritage purchases the home in question from the lender and rents it back to the tenant based on an affordable rent.

Eligibility Criteria

To qualify for the mortgage to rent scheme, your mortgage, home and household must meet the eligibility criteria below:

• Negative equity: Generally, the property must be in negative equity. However, there are properties with a small amount of positive equity that can be included. In County Galway, the limit on positive equity is €30,000.
• Suitability: The property must suit the needs of the household, meaning it should not be over- or under-accommodated. The scheme allows for up to two additional bedrooms beyond what is specified for the family size in local authority guidelines, with some flexibility for older people and those with disabilities.
• Value Limits: The property must not exceed certain value limits. In County Galway, the limit is €345,000 for a house and €230,000 for an apartment or townhouse.
• Social Housing Eligibility: The household must qualify for social housing support in County Galway. Applicants for social housing must apply for social housing before submitting an application to the MTR scheme. Additionally, applicants must not own any other property or have assets exceeding €20,000 and must have a long-term right to remain in the state.

Ownership and Tenancy

If an Approved Housing Body purchases the home, they will become the landlord. If a private company approved by the Department of Housing, Local Government and Heritage buys the home, the tenant will become a tenant of the Local Authority.

Changing from homeowner to tenant involves complex legal and financial arrangements, all of which must be finalised before the property transfer. Legal and financial advice is essential before proceeding with the mortgage to rent process.

Role of Galway County Council

• Assessment: Determine if applicants qualify for social housing support to access the MTR scheme.
• Evaluation: Provide views on local housing needs, market rents, and property suitability based on household composition.
• Agreement: Sign the property's lease or availability agreement with the Approved Housing Body or approved private company.

Email: mrt@galwaycoco.ie for more information.

Useful Links

• www.backontrack.ie
• www.citizensinformation.ie – 0818 07 4000 (Monday to Friday, 9am to 8pm)
• www.mabs.ie – 0818 07 2000 (Monday to Friday, 9am to 5pm)
• https://www.mabs.ie/en/abhaile/ - Abhaile – MABS
• The Housing Agency – Mortgage Arrears Information Helpline – 0761 07 4050 (Monday to Friday, 9.30am to 5pm)
• Mortgage to Rent | Mortgage to Rent