Mortgage to Rent & Vulture Funds

Mortgage to Rent & Vulture Funds

It is generally accepted that MTR numbers are lower than we would all like them to have been in recent years. It is a complex system with multiple parties involved at various points across a complex process.


Icare Housing was established as an Approved Housing Body focused solely on MRT and we have over 500 cases currently in our pipeline.  It I factually incorrect to say you’re more likely to get MTR with a fund. 63% Icare our MTR’s are with non-funds and that includes categorizing Pepper as a fund when it’s arguable that they’re not. To be fair Pepper would class themselves not a fund and this is probably right and therefore the split would be greater.


Funds also less likely to show flexibility with pricing where discounts on the valuations are needed. AIB, PTSB have contracted with ICare to facilitate this. Of expressions of interest on mortgage to rent properties offered this year I Care has expressed an interest in 100% of those offered and been successfully offered over 90% of properties. The high number reflects the lack of interest / viability other AHB’s have without negotiated discounts.


These discounts are needed to do MTR in many rural locations where the low rents make purchases at Open Market Value in many cases nonviable. Previous MTRs were selective as half the country had none in them as the financial model did not work for approved housing bodies hence the need to have discounted prices which Vultures don’t give.


The funds do participate (Tanager erratic) to be fair but not factually correct to say you are more likely to achieve MTR with a fund. MTRs don’t show the number that were rejected by funds due to non-acceptance of lower prices to facilitate financial model needed to make it work for the approved housing body.


No one ever said vulture funds don’t do mortgage to rent. Many factors make mortgage to rent work including working thought vulnerable cases, working through separated couples where there are children and one party eligible and the other not engaging . Arrangements are in place with main lenders to work on these but not with funds and funds only want clean mortgage to rents. Funds have not accepted discounts proposed to make the purchase and rent back viable for iCare Housing.


There fore it is ill-informed to state that anyone has better chance of mortgage to rent with a fund. Yes most participate but that does not guarantee success as they don’t work with the system to help where for example PTSB has done and is doing including agreeing in advance set discounts to make it work.

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