New hope for homeowners in mortgage arrears

Over 1,100 Galway householders have mortgage arrears of two years or more, according to Central Bank figures – but there’s a glimmer of hope for them on the horizon.

Because figures also show that a state scheme has ensured a small number of those families – crippled by unsustainable mortgage arrears – have been able to stay in their own homes.

They have availed of the Government’s Mortgage to Rent scheme aims to keep homeowners with unsustainable debt in their current properties debt-free as long-term tenants of their local authority.

So far, 51 Mortgage to Rent cases have either been completed or are being actively progressed across the city and county, according to figures just released by The Housing Agency.

And a recent rise in eligibility values in the county to €395,000, combined with an increased appetite from lenders to work with the scheme, could see Mortgage to Rent engagements dramatically increase in the coming months.

Lenders and funds are now showing a greater willingness to use the Mortgage to Rent scheme as an alternative to repossessing family homes, according to a prominent mortgage expert.

“My experience since Home For Life began operating last year is that both lenders and funds want to find workable solutions to mortgage arrears once and for all,” said Paul Cunningham, CEO of Home For Life, the only Government-approved private Mortgage to Rent operator.

“This means they want to do a deal with families in trouble in Galway and move on.

“What we are witnessing here are changes which very much favour the Galway householder.

“The Government has shown it is interested in developing the scheme by widening the eligibility bands by €30,000 while banks and funds have made it clear they prefer to see a solution where the householder can stay in their home paying an income-based rent.

For more, read this week’s Connacht Tribune.

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