Buy to Let

PTSB plans mortgage-to-rent scheme with Merrion-led group

Permanent TSB expects up to 2,000 struggling home borrowers to avail of a mortgage-to-rent scheme it is working on with a “preferred partner”, the bank’s director of operations, Shane O’Sullivan, said on Thursday.

It is set to be launched in the coming months.

Sources said the partner is a consortium called Home for Life, led by investment firm Merrion Capital and debt-restructuring company Beacon Capital and backed by more than €500 million of funding committed by international investors, understood to include pension funds.

The Home for Life fund, supported in its development by the Phoenix Project debt charity, would acquire distressed loans from PTSB that qualify for social housing under the Government’s recently improved mortgage-to-rent scheme. PTSB and Home for Life declined to comment.

Earlier this week AIB became the first Irish bank to launch an enhanced mortgage-to-rent scheme following a move by the Government this year to modify a previous plan that has had limited take-up in recent years. AIB is working with a debtors’ advocate, David Hall’s Irish Mortgage Holders Organisation, and the new iCare Housing company.

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