Posted on June 28, 2012 3:14 PM   |   Permanent Link   

Dublin North East Labour Party TD Seán Kenny today warmly welcomed the Government's Mortgage to Rent Scheme, which was launched today.

"This scheme demonstrates the Labour Party's commitment to helping families who face the imminent prospect of repossession of their family home. This is a priority issue for the Labour Party and dealing with the issue is part of the Programme for Government. The Scheme is specifically targeted at those 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. The Scheme ensures that the family remains in the home, paying rent, while ownership is transferred to an approved housing body."

"Some families have been caught in an awful situation in relation to mortgage repayments. They purchased their home when prices were much higher and in many cases the family income that made the repayments possible has dropped significantly, often through the loss of one or more jobs. Many of these families now face the terrible trauma of repossession. The Government, following on from the Keane Report, pledged to take action and the Mortgage to Rent Scheme is the result of the great work that Minister O'Sullivan has undertaken in order to deliver for families.

"The Scheme is an option for families who have had their mortgage deemed unsustainable and who are eligible for social housing, who are prepared to agree to the voluntary repossession of the property and who are dealing with negative equity in relation to the value of their home."

"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.

"Since February Minister O'Sullivan's department has operated a pilot project to test the Scheme to make sure that it delivers. More than 60 cases are currently going through various stages of the process. The Mortgage to Rent Scheme is very much a final option for low-income families facing severe mortgage difficulty. It is just one element of the range of solutions that the Government has been working on. It offers a viable, stable future for families on low incomes overwhelmed by mortgage debt and I warmly welcome it."