# Mortgage to Rent, any experiences?



## Matthew Moore (10 Apr 2014)

Hi, 
Has anybody been through or currently in the Mortgage to Rent (MTR) process?
Anybody any idea how long it takes from start to finish?

I applied to my lender in December for inclusion on the MTR scheme, they accepted and my application is currently with the Local Authority. It seems to be a pretty slow process.



The process so far goes something like this:

Contact bank and ask to avail of the scheme>> 
If accepted bank will make submission to Housing Agency regarding your circumstances>>
If Housing Agency think you circumstances are appropiate they will send details of your house to a number a Housing Associations who may be interested in purchasing your house>>
Housing Associations have 7 days to express an interest. If a Housing Association expresses an interest this will be communicated to the bank>>
The bank will send you an information pack and some application forms>>
You now need to make a formal housing application to your Local Authority using the forms supplied by the bank>>

Just a tip, on the last stage above the bank may have given you a form called HPL1 to get stamped by the Revenue Commissioners. You don't need this form and as a mortgage holder it's unlikely you will be able to get it stamped.


----------



## Brendan Burgess (11 Apr 2014)

Hi Pat

The 4 main banks have done 1 between them.  They have deemed many of their borrowers suitable but just can't get them across the line. 

http://www.askaboutmoney.com/showthread.php?t=186560

The process is simply too complicated and there are too many organisations involved in getting it across the line.


----------



## Matthew Moore (13 Apr 2014)

Hi Brendan,

I wonder where the completed sales have come from? http://dail.ie/parliament/mediazone...rch/20housessoldundernewmortgagetorentscheme/
I think it's in the 10's rather than 100's at the moment but I have read in numerous places that some have been completed.

It is a lengthy process with a huge amount of moving parts. The main stake holders are myself, the bank, the Housing Association, the Housing Agency and the Local Authority and in speaking to the people involved there seems to be a huge increase in demand. 

In my own situation I foresee 3 possible stumbling blocks. 
1, Will the Housing Association be willing to buy my house in its current state of repair?
2, Will the Housing Associations offer be acceptable for the bank?
3, Will the Official Assingee in my bankruptcy accept that the house if being sold through the MTR scheme?

I have been told that something that catches some people out is the rising property values. You could be accepted for the scheme but by the time the deal gets close to closing the property price has breached the threshold. No fear of this in my case as the most recent valuation by the bank was around €80K


----------



## Brendan Burgess (14 Apr 2014)

Hi Pat

The figures I quoted came from the banks before the Oireachtas Finance Committee last week.  The discussion should be online now and you can read through them for the many discussions of the MTR.

Brendan


----------



## Matthew Moore (14 Apr 2014)

Hi Brendan,

I know these figures were given to the finance committee. But previously released figures have shown that more have been through the process. I am wondering whether this is with sub prime lenders or whether current or previous figures were somehow incorrect?
I don't have the time at the moment to read the transcripts but they are available here for anybody interested: http://oireachtasdebates.oireachtas...ack.nsf/committeebasebyyear/2014?opendocument


----------



## Matthew Moore (13 May 2014)

Bit of an update about my MTR application:

The Local Authority came back to me in about 2 weeks and confirmed I am eligible for Social Housing. They supplied a headed letter stating the same. I sent this original letter to my bank and also returned a signed application form. Your signing of this form means you have given permission to the bank to share your details with the Housing Association (HA) and that you wish to proceed with the application. I made copies of all these documents and sent them to the HA too. 
I heard back from the HA almost immediately confirming receipt of my documents. They said they will deal with the bank for the moment and be intouch if they are proceeding and a valuation is required. I didn't hear anything from the bank so I called the guy I'm dealing with and he confirmed receipt of the documents and that they had instructed an agent to do a valuation. 
An Estate Agent acting for the HA contacted me last week about arranging a valuation. That valuation has now been completed so just waiting on the banks valuation for the moment. 

I must admit to being slightly dismayed recently following the information disclosed to the finance committee that so few MTR's have been completed by my lender. However, the fact that they have commissioned a valuation has lifted my spirits. The odds are not in our favour at the moment but we'll remain positive. Like everything else with Mortgages, Insolvency etc, it's new to all of us.


----------



## Matthew Moore (21 May 2014)

I intend on dealing with the shortfall from my mtr deal through bankruptcy. I have other debts also so all will be lumped in together. Something very interesting has arose which I did not consider. I need to delay my bankruptcy application until the transaction is complete as the OA in bankruptcy would want 5k to release his interest in the property if I was in the bankruptcy process.


----------

