€20M FUND RELIEF FOR LOCAL AUTHORITY MORTGAGE HOLDERS IN DISTRESS

Posted on February 11, 2014 4:58 PM   |   Permanent Link   

Dublin Bay North Labour T.D., Sean Kenny, has welcomed the announcement by Minister Jan O'Sullivan that a new €20m fund will be put in place in order to offer a 'mortgage-to-rent' solution to local authority mortgage holders across the country who are in distress.

"Across the local authority sector, it is easy to see how serious this problem is. Roughly 31% of all local authority loans are in arrears for 90 days or more. The Mortgage Arrears Resolution Process (MARP) has been implemented across the local authority sector, this announcement will ensure that the 'mortgage to rent' option is also available to local authority mortgage holders. It is important that these households are given access to the same options available to other mortgage holders."

"The 'mortgage to rent' approach was one of the solutions identified in the Keane Report on mortgage arrears. Ownership of the home transfers to the local authority and the family pays a differential rent. The €20m fund will allow local authorities to offer the 'mortgage to rent' scheme to local authority mortgage holders with unsustainable mortgages. This will enable families to stay in their home and their established community.

"The most important step any family in arrears can take is to engage early with the Arrears Support Unit of the local authority. Solutions are available and advice should be sought as early as possible."