02.01.2024
Interim Chief Executive Officer of Hellenic Bank, Antonis Rouvas , expressed his support for the new mortgage-to-rent scheme, which was introduced to help vulnerable households. In a statement, he said: “We welcome this plan as a welcome measure to provide housing for vulnerable households.” For those with mortgages in Hellenic Bank and is eligible or wishes to participate in this plan, it is recommended that you contact Kedipes for more information and to apply accordingly.
Under the plan, homeowners facing the loss of their properties due to mortgage debt could rent their homes to their lender for five years. The state-owned company Kedipes purchases the property and becomes the landlord, with tenants remaining in their homes.
Applicants who qualify and have title transfer their property to Kedipes, which enters into a 14-year lease with the government covering the rent. Former owners or their relatives have the right to buy the property after five years at a price that takes into account changes to the property, expenses and rent.
Eligibility for this program applies to home equity loans up to €250,000 and certain categories of borrowers with properties up to €350,000 who were previously excluded from housing programmes.
In its statement, the bank further clarified the three main groups eligible to participate in the plan:
- welfare recipients, such as single parents, large families, people with low pensions and disability pension recipients, who had outstanding loans at the end of 2021 and remained in default as of December 31, 2022;
- applicants under the Estia and Oikia housing programs with properties up to €350,000, and all applicants under these programs who were initially approved to participate but were subsequently excluded.
- all applicants under the two above-mentioned housing schemes initially approved for inclusion but subsequently excluded.
This program has also been supported by the Cyprus Borrowers Association ( Syprodat ), which encourages all eligible borrowers to seriously consider participating in the program in order to take advantage of the rights and benefits of the scheme.
