PTSB accepts mortgage loan program for 500 housing units

The Permanent TSB has agreed to allow some of its troubled mortgages to stay at home as part of a mortgage program offered by an organization called Home for Life.

This follows a similar pattern with David Hall's two organizations, the Irish Mortgage Holders Association (IMHO) and iCare, which will ultimately allow clients to not repay their mortgages at home as long-term renters. Authorized by the Minister of Housing, Planning and Local Government, initially targets a maximum of 500 households for a budget of about 100 million euros.

The voluntary and confidential plan is available to distressed mortgagors eligible for social housing and currently residing in a residence where they wish to continue to live, but are unable and unlikely to pay their mortgage.

The Home for Life program allows you to sell a property to the group and then lease it to the state through the local authority that sublets the home to the landlord. origin. leases have a term of 25 years. Rents are set at 95% of market rents.

"The appointment of Home For Life is an important step towards an increase in mortgage rent to meet the needs of more and more mortgage borrowers.It offers the flexibility of private financing with the confidence and the badurance of having a local authority as the owner, "said Damien English, Minister of State for Housing and Urban Development.

Paul Cunningham, the Chief Executive Officer of the organization, said he was engaged with "key stakeholders" in the Irish banking and social housing sector for over two years.

"In collaboration with our financial advisors we have developed a scalable private financing model that can meet the market demand for leasing with no impact on the state's balance sheet, "he added.

Initial Financing of the diet p Some key stakeholders include Charles O'Reilly Hyland and Paul Cunningham. When badets are purchased, it is expected that additional funds will be raised.

The company has been advised by Davy Corporate Finance and it is understood that they have been in discussion with parties for funding hereafter.