What is the Mortgage to Rent Scheme?
The Mortgage to Rent Scheme is a Government Initiative to help homeowners who are at risk of losing their homes due to mortgage arrears. The Scheme is an option for people who have been involved in the Mortgage Arrears Resolution Process (MARP) with their lender.
Under the Mortgage to Rent Scheme, you will voluntarily surrender ownership of your home to your lender. A Housing Association (A housing association is a registered charity and a ‘not for profit’ organisation which has been approved by the Government to provide and manage housing) will buy your home from your lender and become your landlord. You will no longer own your home but you will continue to live in it as a tenant of the Housing Association. You will pay an income related rent set by the Local Authority.
Your participation in the Scheme will have significant implications for your tenure, so you should give it careful consideration.
You will no longer own your property, but you can continue living in your home as a social housing tenant and have a tenancy agreement with the Housing Association.