Mortgage to Rent Scheme

Local authorities may provide assistance to home owners with mortgage arrears who are at risk of losing their home. Home owners can apply to switch from owning their home to renting their home as social housing tenants.

The Mortgage to Rent scheme helps homeowners who are at risk of losing their homes due to mortgage arrears. The scheme is one of the possible resolutions for people who have been involved in the Mortgage Arrears Resolution Process (MARP) with their lender and whose mortgage has been determined as unsustainable.

The scheme is a social housing option only available for homeowners or borrowers who are eligible for social housing support.

Under the scheme, the borrower voluntarily gives up ownership of their home to their mortgage lender. An approved housing body (also known as housing associations or voluntary housing associations) or private company can buy the property after it is given up to the lender.

The borrower no longer owns their home but continues to live there as a tenant of the local authority or approved housing body. They pay an affordable rent based on their income.

This department oversees the scheme. The Housing Agency administers the scheme.

How to Qualify

To qualify for the Mortgage to Rent scheme, your mortgage, property and household income must all meet the eligibility criteria.

The Mortgage to Rent scheme has a dedicated website. The eligibility criteria for the scheme are available on the website.

If you have your mortgage with a local authority, a similar scheme is also available.

Apply

Your lender will be the main point of contact. You should discuss the scheme with them to see if it is a possible solution to your situation.

If the scheme is an option for you, your lender will provide you with all of the documentation required to apply for the scheme, including a letter stating that your mortgage is not sustainable. Your local authority will assess if your household qualifies for social housing support. The letter regarding your mortgage is required for this.

A guide to the Mortgage to Rent scheme is available on the Mortgage to Rent website. It provides details on the application process and steps involved.

A visual guide to the Mortgage to Rent process may also be useful. It is available in the MTR Step by Step Process Chart.