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State-supported scheme aims to keep owners in current property

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It is an option only available if the homeowner is eligible for social housing support and their mortgage is deemed unsustainable. Photo: PA

It is an option only available if the homeowner is eligible for social housing support and their mortgage is deemed unsustainable. Photo: PA

It is an option only available if the homeowner is eligible for social housing support and their mortgage is deemed unsustainable. Photo: PA

The mortgage-to-rent scheme aims to keep owners with unsustainable housing loan debt in their current homes. Instead of being mortgage holders, they end up as long-term tenants of their local authority.

It lets homeowners in significant mortgage difficulty switch from owning their home to renting it as social housing tenants.

It is an option only available if the homeowner is eligible for social housing support and their mortgage is deemed unsustainable.

Under the scheme, a property is sold to a provider such as Home For Life, and the bank or fund that owns the mortgage will write off the arrears.

The property is then leased back to the State through the local authority.

The local authority sublets the house or apartment back to the dweller, who pays an affordable, income-based rent. However, there are income and property value limits for those who want to avail of the State-supported scheme. In Dublin, Cork, Meath and Kildare, the income of a family of four must not exceed €42,000 after tax. The house must not exceed €395,000 in counties including Dublin, Kildare, Meath and Cork.

A house must not exceed €305,000 in other counties.

However, there is another option for those whose income and property values are too high.

Private company Arizun is offering to buy their homes, write off their debts, clear their mortgages and rent the homes back to them.

Irish Independent