FAQ Page -

Qualification for Mortgage To Rent

Mortgage

You have completed the Mortgage Arrears Resolution Process with your lender.
You are unable to make the full repayments on your Mortgage Loan.
Your lender has deemed your mortgage to be unsustainable
Your lender is agreeable to your participation in the Mortgage to Rent scheme.

Property

Your property must be in negative equity; however, if your property is in positive equity, it may be considered on a case-by-case basis.
You do not own or have shared ownership of any other property.
Your property is eligible for participation in the Mortgage to Rent scheme.
Your property value is within the limits as per the table below, if you are above these limits we have agreements with some of the lenders for discounts which may still allow you to avail of MTR as an option.

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

Information

Under the MTR scheme, you will voluntarily surrender ownership of your home to your lender. iCare Housing will buy your home from your lender and you become a tenant of iCare Housing in your own home.

You can buy back your home from iCare Housing if your financial circumstances improve, more details on this can be found ‘Who can buy back my property?’.

It is important that you give careful consideration to your participation in the scheme, while you will remain in your family home iCare Housing will own the property and you will be our tenant.

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

iCare housing is a not for profit regulated approved housing body, which has been established with the sole purpose of keeping you in your family home. We are not here to profit from you. In the event any excess funds arise we are required to re-invest for social housing purposes.
We are regulated by the Regulation Office, which operates within the Housing Agency and we adhere to all their Governance Standards.
Unlike a private fund (commercial entity) iCare Housing are working with Respond a well-respected approved housing body with decades of experience in housing services and the second largest approved housing body in Ireland. We felt it important as a new approved housing body to partner with Respond who manage thousands of properties and together, we will ensure all our properties are maintained to the highest standards as set out in the Housing (Standards for Rented Houses) Regulations 2017.
As a not for profit regulated approved housing body, we will not be selling your home unless you wish buy it back from us. This cannot be said for private funds.

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.

Your initial tenancy agreement with iCare Housing will be for 25 years, this period is set by your local authority. If you are still eligible for social housing after the initial 25 year lease with tenancy and are a tenant in good standing with iCare Housing, we undertake to ensure that your home is available to you for a follow on lease for a further 25 years. We undertake not to sell your home after the initial 25-year tenancy agreement. Your tenancy is subject to the provisions of the Residential Tenancies Acts and your tenancy will be registered with the Residential Tenancies Board..
iCare Housing will not sell your home. Not everyone can give you this assurance as private funds can sell your home at any time, while stating that your tenancy is protected.

Your weekly rent payments need to be made on time and in full (these have been set at an affordable level in line with social housing rents set by local authorities , to ensure you can maintain your required payments)
You will need to keep the property in a clean and proper state of repair
Anti-social behaviour is not acceptable
Your iCare Housing tenancy agreement sets out your responsibilities in full and it is important that you read this document to make yourself aware of your responsibilities.
As a general rule, you as Tenant are responsible for internal repairs and garden maintenance. iCare Housing are responsible for structural repairs.

If there are no surviving tenants, the property would revert to iCare Housing and would be offered for social housing needs in your area.
If there are surviving tenants they will remain in their family home, there will be a reassessment of household income to ensure their rent is affordable.
In certain circumstances the following family members can take over the tenancy in the event of the tenant’s death: a spouse or civil partner, a cohabitee who has occupied the dwelling for a least 6 months ending on the tenant’s death, a child, stepchild, foster or adopted child of the tenant, or a parent of the tenant. These circumstances are: (1) they are included in the list of family members above, (2) they have lived in the property for at least 6 months ending at the tenant’s death, (3) are over 18 and (4) they qualify for social housing in their own right.

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.

Buy Back Options

Option A

Option B

Price (discounted) that iCare Housing paid for it;
Cost of repairs incurred by iCare Housing in bringing the property up to private rental standards during the period of the tenancy;
Cost of finance incurred by iCare Housing on the property transaction and ongoing during the period of the tenancy; and
Legal costs incurred by iCare Housing

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.

Standing Order or Direct Debit (set up from your bank account)
Household Budget (if you receive Social Welfare Benefits)
Electronic transfer (using banking online)
Post Office Swipe card, known as Billpay (this can be used at the post office or any shop with a PostPoint facility)