Three of Ireland’s leading mortgage lenders have teamed up with the Irish Mortgage Holders Organisation and iCare Housing to help certain borrowers in arrears to stay in their homes.
Over the last three years, the AIB Group, which includes subsidiaries EBS and Haven, has reduced the value of its so-called “non-performing loans” from €29 billion to €7.8 billion.
Now, the banking trio has launched aimed at reducing this figure further and “keeping mortgage customers who are in difficulty in their homes wherever possible”, according to Jim O’Keeffe, AIB’s Head of Financial Solutions Group.
Who will qualify?
AIB, EBS and Haven customers who qualify for social housing and are in mortgage arrears will be eligible to partake in the a revamped Mortgage-to-Rent process.
To qualify, you must meet a number of criteria.
For example, you must have completed the Mortgage Arrears Resolution Process with your lender and your house must be valued at no more than €365,000 if you live in Dublin, Kildare, Meath, Wicklow, Louth, Cork and Galway or €280,000 for the rest of the country.
Additionally, your net household income must not exceed €25,000, €30,000 or €35,000 a year for a single person, depending on what part of the country you live in.
How will it work?
If you meet the criteria for the Mortgage-to-Rent scheme decide to complete the process, ownership of your home will transfer to iCare Housing.
You’ll then become a long-term tenant of iCare Housing and any debt that remains on your mortgage after the property sale, will be written off.
You’ll have the option to buy your home back at the price iCare paid at any point, including all discounts negotiated by iCare.
"A significant day"
Today’s move by the AIB Group, the IMHO and iCare Housing is likely to bring some long-overdue peace of mind to the many households that have been worried about making their mortgage repayments in recent years.
David Hall, CEO of the IMHO and iCare said “today is a hugely significant day for those who have been struggling with unsustainable mortgage debt for the last number of years. For AIB, EBS & Haven customers an option now exists”.
If you want to discuss your mortgage arrears, you can contact the IMHO on 1800 988 977 or AIB on 1800 200 811.