You stay in the same house, with the same neighbours and schools. Any debt left over after the sale becomes an unsecured debt you agree with your lender. If things improve, you can buy the home back later.
Quick facts
- Who runs it
- Your lender, the council and a housing body
- Your rent
- Based on your income
- Equity allowed
- Up to €50,000, €45,000 or €40,000 by area
- Max house value
- €515,000 or €395,000 by area
- Free advice
- Lender pays up to €500 legal, €250 financial
How it works
"An approved housing body (AHB) or approved private company then buys your home from your lender and rents it back to you." "You become a social housing tenant, which means you pay an affordable rent based on your income."
The sale money goes against your mortgage. Anything still owed becomes an unsecured debt that you agree with your lender. After 5 years, or sooner if agreed, you have the option to buy the home back.
Who qualifies
- Your mortgage is with a private lender (council borrowers have a separate option)
- You can't make the repayments, and your lender has decided that is unlikely to change
- You have been through your lender's Mortgage Arrears Resolution Process (MARP)
- You qualify for social housing support in that council area, and you apply for it first
- You own no other property and have no assets over €20,000
"You must not own any other property or have assets in excess of €20,000."
The limits on your home (since 1 November 2024)
"In general, your property must be in negative equity." A little positive equity is allowed: up to €50,000 in Dublin, Cork City, Galway City, Meath, Kildare and Wicklow; €45,000 in a middle group of counties; and €40,000 in the rest.
A house can be worth up to €515,000 in Dublin, Kildare, Meath, Wicklow, Louth, Cork and Galway, and €395,000 elsewhere. Apartments have lower limits. The home can have up to 2 more bedrooms than your family needs.
Free advice before you decide
You must get legal and financial advice first, and your lender pays for it. "Your lender will pay up to €500 for legal advice." It will also pay €250 for advice from an accountant on the Mortgage Arrears Information and Advice Service panel.
MABS gives free debt advice and can explain the scheme. Ring the MABS Helpline on 0818 07 2000.
How to start
Ask your lender. "You must apply for social housing support before submitting an application to the mortgage-to-rent scheme." Your lender gives you the form if it is right for you.
If your lender says no, it must give reasons in writing and you can appeal to its Appeals Committee.
Common questions
What is the mortgage to rent scheme in Ireland?
A scheme that lets you give up ownership of your home to your lender, have an approved housing body or company buy it, and stay living there as a social housing tenant on an income-based rent.
How much positive equity is allowed for mortgage to rent?
Up to €50,000, €45,000 or €40,000 depending on where you live, since 1 November 2024. In general the home should be in negative equity.
What is the maximum house value for mortgage to rent?
€515,000 for a house in Dublin, Kildare, Meath, Wicklow, Louth, Cork and Galway, and €395,000 elsewhere. Apartments have lower limits.
Can I buy my house back after mortgage to rent?
Yes. If your finances improve you have the option to buy it back after 5 years, or earlier if agreed.
Who pays for advice on mortgage to rent?
Your lender pays up to €500 for legal advice and €250 for financial advice from a panel accountant.