Qualification for

Mortgage

Property

Type of Property
Location
Max Value
House
Dublin, Kildare, Meath, Wicklow, Louth, Cork & Galway
€395,000
Apartment
Dublin, Kildare, Meath, Wicklow, Louth, Cork & Galway
€310,000
House
Elsewhere in the state
€300,000
Apartment
Elsewhere in the state
€220,000
Type Of Property
Location
Maximum Value
House
Dublin, Kildare, Meath, Wicklow, Louth, Cork & Galway
€395,000
Apartment
Dublin, Kildare, Meath, Wicklow, Louth, Cork & Galway
€310,000
House
Elsewhere in the State
€305,000
Apartment
Elsewhere in the State
€220,000

MTR is an option if your lender has deemed your mortgage to be unsustainable, and you have been deemed eligible for social housing.Qualification Criteria for Mortgage to Rent

  • The most important benefit is that you continue to live in your family home.
  • Your weekly rent payments will be based on your household income, these rental payments are set by the local authority and are designed to be affordable.
  • If your household income reduces your weekly rental payment may also be reduced.
  • If your household income increases it will not affect your tenancy, your improved circumstances may increase your weekly rental payments, but these payments are capped by the local authority to always ensure affordability.
  • A tenant of the property can buy back the property. All other household members are defined as occupants. An occupant of the property can become a tenant if the circumstances outlined in the section above apply. Children under 18 are occupants and cannot be tenants.
  • The property can be bought back for the price iCare Housing paid including our costs at any time during the lease with tenancy.

Option A

Option B

And

Post-buyback, if the borrower sells their housing within 20 years of purchasing house from iCare Housing, they will have to pay iCare Housing a percentage of the proceeds of the sale – known as a clawback. The percentage is expressed as the percentage difference between iCare’s cost (defined as the price iCare Housing has paid the lender for the property, plus the repair, legal and finance costs incurred by iCare Housing on the property transaction and ongoing during the period of the tenancy) and the open market value of the house. This amount will be reduced by 5% each year after the borrower buy backs the property. If the borrower sells their home after 20 years, they will not have to pay any clawback to iCare Housing.

The market value at the time of the borrower selling their home is used to calculate the amount of clawback due. If the gap between the original sale price and market value has narrowed, the amount of the clawback will also reduce. If the proceeds of the sale of the borrower’s home are below the initial price actually paid, they will not be liable to pay iCare Housing a percentage of the proceeds of the sale.

The formula for calculating the clawback percentage is:

Clawback Percentage = (Y x 100)/Z

where Y is the difference between the market value of the house at the date of sale to the purchaser and the price actually paid and Z is the market value of the property at the date of sale to the purchaser. Allowances are made for any material improvements to the property undertaken by the borrower post buy back. ‘Material improvements’ means improvements made to the property (whether for the purpose of extending, enlarging, repairing or converting the property), but does not include decoration.

The clawback is registered as a charge over the property for a period of 20 years.

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Rent Payment Methods