DUBLIN — Homeowners who are struggling with unsustainable mortgage repayments and are at risk of losing their homes may be able to remain living in their property through Ireland’s Mortgage to Rent scheme.
The government-backed scheme provides a route for eligible homeowners in serious mortgage arrears to give up ownership of their home while continuing to live there as a social housing tenant.
Instead of the homeowner continuing to carry an unsustainable mortgage, the property is transferred through the scheme and purchased by an approved housing body or an approved private company. The former homeowner then pays an income-based rent and can remain in the property under the terms of their new tenancy.
The scheme is aimed at households whose mortgage is considered unsustainable and who also meet the requirements for social housing support.
What is Mortgage to Rent?
Mortgage to Rent is designed for homeowners who have reached the point where their mortgage is no longer sustainable and who are at risk of losing their home because of mortgage arrears.
Under the arrangement, the homeowner voluntarily surrenders ownership of the property to the mortgage lender.
The lender then sells the property to a Mortgage to Rent provider. This can be an Approved Housing Body (AHB) or, depending on the circumstances, a private company approved to participate in the scheme.
The homeowner no longer owns the property but can remain living there as a social housing tenant.
The Housing Agency oversees the scheme, while the homeowner’s lender plays an important role in assessing and progressing an application.
Who can qualify for Mortgage to Rent?
Eligibility depends on several factors relating to the mortgage, property and household.
A homeowner generally needs to demonstrate that the mortgage repayments are no longer affordable and that the situation is unlikely to improve.
They must also be engaging with their lender to try to resolve the mortgage difficulty and must have completed the Mortgage Arrears Resolution Process, known as MARP.
MARP requires participating lenders to follow a defined process when dealing with borrowers experiencing mortgage arrears.
Completing the process does not automatically mean a homeowner will qualify for Mortgage to Rent. The other conditions of the scheme must also be met.
Property requirements
The property itself must meet the scheme’s criteria.
The home can have some positive equity, but there are limits depending on where the property is located.
The current positive-equity limits are:
- €50,000 in Dublin City, Dún Laoghaire-Rathdown, Fingal, South Dublin, Kildare, Wicklow, Meath, Cork City and Galway City.
- €45,000 in Carlow, Clare, Cork County, Galway County, Kerry, Kilkenny, Laois, Limerick, Louth, Waterford, Westmeath and Wexford.
- €40,000 in Cavan, Donegal, Leitrim, Longford, Mayo, Monaghan, Offaly, Roscommon, Sligo and Tipperary.
The homeowner must also generally own no other property and the family home must be suitable for the household’s needs.
There are specific provisions for some households that are considered over-accommodated, including certain cases involving older borrowers or a household member with a disability.
The value of the property is also subject to maximum limits.
For homes in Dublin, Kildare, Meath, Wicklow, Louth, Cork and Galway, the current maximum values are:
- €515,000 for a house
- €385,000 for an apartment, duplex or townhouse
In the rest of the country, the limits are:
- €395,000 for a house
- €265,000 for an apartment, duplex or townhouse
These limits mean that meeting the mortgage-arrears conditions alone is not enough to qualify.
Household income and social housing eligibility
Mortgage to Rent is linked to Ireland’s social housing system.
The household must be eligible for social housing support from the local authority in the area where the property is located.
There are also income limits.
The current net household income thresholds are €30,000, €35,000 or €40,000, depending on the area of the country, with additional allowances available in certain circumstances for children.
Net household income means income after tax and PRSI deductions.
Applicants must also have a long-term right to remain in Ireland.
Because the scheme results in the household becoming a social housing tenant, the local authority’s assessment of social housing eligibility is an important part of the process.
What happens to the home?
If the application progresses and the homeowner agrees to Mortgage to Rent, ownership of the property is voluntarily surrendered to the mortgage lender.
The lender then sells the property to a participating Mortgage to Rent provider.
The former homeowner becomes a tenant rather than an owner.
If an Approved Housing Body purchases the property, the AHB becomes the landlord and the household pays income-based rent under the applicable social housing arrangements.
Where a private company purchases the property, the local authority becomes the tenant’s landlord for the purposes of the social housing arrangement.
The precise tenancy arrangements therefore depend on who purchases the property.
Can the homeowner stay in the property?
Yes, the central purpose of Mortgage to Rent is to allow an eligible household to remain in its home rather than losing the property because of an unsustainable mortgage.
The household no longer has ownership of the property, but it can continue living there as a social housing tenant provided it complies with the relevant tenancy conditions.
The scheme therefore separates the ownership of the property from the household’s right to occupy it.
If the household’s housing needs change in the future, the social housing arrangements can also provide for alternative accommodation where appropriate.
How much rent will the household pay?
The rent is designed to be affordable and is based on household income under the relevant social housing rent arrangements.
This means the rent is not simply the same as the market rent that might otherwise be charged for the property.
The amount can change if household circumstances or income change.
The Mortgage to Rent scheme is therefore intended to provide a more sustainable housing cost for households that can no longer sustain their mortgage.
What happens to the mortgage debt?
The proceeds from the sale of the property are used towards the outstanding mortgage debt.
However, the sale does not necessarily mean that every outstanding amount is automatically eliminated.
The lender will discuss the position regarding any remaining debt with the homeowner.
This is one reason homeowners experiencing mortgage difficulties should engage with their lender and obtain professional advice before making decisions about their property.
Can the homeowner buy the property back?
Mortgage to Rent does not necessarily mean that the former homeowner can never own the property again.
If the household’s financial circumstances improve, there is an option to seek to buy the property back after five years.
The buy-back arrangements depend on the circumstances of the original transaction and the terms applying to the property.
The Mortgage to Rent guidance provides for different buy-back arrangements depending on whether the property was purchased at market value or at a discounted price.
A homeowner considering the scheme should therefore understand the applicable buy-back terms before proceeding.
Who is responsible for maintaining the property?
Responsibility for maintenance depends on the arrangement and the terms of the tenancy.
Where an Approved Housing Body owns the property, it is responsible for property management and maintenance in accordance with the tenancy agreement.
Where a private company is involved, maintenance responsibilities are also governed by the relevant tenancy arrangements.
The homeowner should therefore establish exactly who will be responsible for repairs and maintenance before entering into the new tenancy.
How do you apply for Mortgage to Rent?
The first step is to speak to the mortgage lender.
The Housing Agency says homeowners should contact their lender about Mortgage to Rent after their Standard Financial Statement has been assessed.
The lender can determine whether the mortgage is considered unsustainable and whether Mortgage to Rent may be an appropriate option.
Homeowners can also receive assistance through the Abhaile service, which provides support to people dealing with serious mortgage arrears.
If Mortgage to Rent is considered suitable, the lender provides the documentation needed to progress the application.
The household must also apply for social housing support through the relevant local authority.
What happens if the application is not accepted?
Mortgage to Rent is not automatically available to every homeowner in mortgage arrears.
Applications can fail for a range of reasons, including income being above the permitted limit, the property exceeding the applicable value limit, the household’s accommodation being unsuitable, or issues concerning the property’s equity.
The Housing Agency’s latest published figures show that 7,938 cases had been submitted to the scheme by the end of June 2026.
Of those, 3,021 cases had been completed, while 291 were actively being progressed. A total of 4,626 cases had been classified as ineligible or terminated over the period covered by the figures.
The Housing Agency said 8,242 individuals — including 4,651 adults and 3,591 children — were benefiting from the scheme at that point.
The figures underline that an application to Mortgage to Rent involves an assessment of the mortgage, property and household rather than an automatic transfer into the scheme.
Mortgage to Rent is not the same as keeping your home
One of the most important points for homeowners to understand is that Mortgage to Rent does not allow someone to keep ownership of their property while receiving mortgage assistance.
The homeowner voluntarily gives up ownership.
In return, an eligible household can remain living in the property as a social housing tenant and pay an income-based rent.
For households facing an unsustainable mortgage, that distinction can be significant.
Anyone considering Mortgage to Rent should therefore make sure they understand the consequences for ownership, mortgage debt, rent, tenancy rights and any future buy-back option before agreeing to proceed.
Where to get help
A homeowner struggling with mortgage arrears should contact their lender and ask about the options available before the situation reaches the point of repossession.
The lender can assess the borrower’s circumstances through the relevant arrears process and determine whether Mortgage to Rent may be appropriate.
The Housing Agency also provides information about the scheme, while the Mortgage to Rent service provides eligibility information and guidance for applicants.
The local authority is responsible for assessing eligibility for social housing support, which is a key requirement for Mortgage to Rent.
For homeowners who are unsure about their options, the Abhaile service can provide access to financial and legal advice relating to mortgage arrears.
Mortgage to Rent | Mortgage Arrears | Social Housing | Homeowners
