Vulture fund agrees mortgage-to-rent deal
A vulture fund has teamed up with a housing body to offer thousands of distressed mortgage holders a lifeline.
The fund Promontoria is working with Home for Life to offer those at risk of losing their homes the option of signing up for the State's mortgage-to-rent scheme.
This development contradicts claims that vulture funds are refusing to do deals with homeowners in financial distress.
An agent for the funds will this week send letters to some 450 stretched borrowers alerting them to the offer that will allow them to remain in their homes. Those getting the letters are in danger of having their homes repossessed.
People getting the letters have their mortgages owned by the funds, but the loans are serviced by Link Asset Services.
The deal was put together by Home For Life, which is authorised by the Department of Housing to operate the mortgage-to-rent scheme. It is spearheading a drive to allow mortgage holders in unsustainable debt stay in their current homes debt free as tenants.
Home for Life chief executive Paul Cunningham said the deal was "a significant and very positive development for borrowers whose mortgages are serviced by Link Asset Services".
"We have been working with them for a number of months to provide this solution to borrowers who are in difficulty to ensure that they do not lose their homes."
Mr Cunningham said it was "never too late to engage and as testament to this [the financial institution] are specifically targeting borrowers where repossession orders have already been granted as part of the initial tranche of letters issuing to customers".
He said the development was positive for borrowers in mortgage difficulty.