Mortgage to rent scheme gears up

Borrowers are receiving letters of approval for participation in the mortgage to rent scheme, running from December 2023 to September 6, 2024.

Through the scheme, eligible applicants transfer the ownership of their primary residence to the Cyprus Asset Management Company (Kedipes) while maintaining residency in their property. The rent is paid by the state.

Kedipes chairman Lambros Papadopoulos told the Cyprus News Agency (CNA) that letters are already being sent out to successful applicants.

He noted 2,092 applications have so far been received, of which 1,448 have been deemed eligible, however not all may receive final approval.

“We hope that we will surpass the aim of 800 applications because we want the most possible borrowers to enter the scheme,” Papadopoulos explained.

Fewer than ten letters are currently in the post.

Papadopoulos said that around 3,000 households are estimated to be eligible and that so far only 50 per cent of those have applied and been approved.

The initial criteria set include vulnerable borrowers.

“Technical inspections and evaluations will be carried out, followed by arrangements for encumbrances, and finally the acquisition of the property,” Papadopoulos said.

He noted that after the borrowers receive their letters, the whole acquisition procedure will take a few weeks.

The Kedipes chairman also called on all those meeting the criteria to apply before the deadline.

“The good thing about the scheme is that all the loan obligations of the borrowers will be erased” and they will “get a chance for a fresh start,” he added.

Five years into the scheme, the borrowers will have the option to repurchase their property at the price it was acquired by Kedipes, which is around 65 per cent of its value.