Thursday 18 July 2019

AIB backs 3,000-home mortgage-to-rent plan

'Central Bank figures show over 27,000 mortgage holders are in serious arrears and unable to make any payments for at least two years.' Stock photo: Getty Images
'Central Bank figures show over 27,000 mortgage holders are in serious arrears and unable to make any payments for at least two years.' Stock photo: Getty Images

Fearghal O'Connor

AIB has agreed a significant debt facility with Home For Life to buy up to 3,000 'mortgage-to-rent' properties.

The deal between the country's biggest bank and the sole private operator of the Government's Mortgage to Rent scheme commits to further funding beyond an initial tranche of purchases in the short term.

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Central Bank figures show over 27,000 mortgage holders are in serious arrears and unable to make any payments for at least two years.

Up to half of those will be unable to restructure this debt, but may qualify for the scheme. Home For Life believes its target is achievable due to the level of cases.

Under the scheme, homeowners in unsustainable mortgage debt are able to remain in their homes while they pay an affordable rent to their local authority and have their mortgage-debt issues resolved.

The scheme has helped banks remove long-standing non-performing loans from their books.

"There is now a real opportunity to solve the problems of householders who find themselves in serious financial situations because banks are eager to do deals," said Home For Life chief executive Paul Cunningham.

AIB CEO Colin Hunt said he was "pleased to provide funding support" to a company "focused on providing sustainable housing solutions".

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