A last-minute rush by distressed borrowers has pushed applications to Cyprus’ mortgage-to-rent scheme beyond 4,200, prompting the government to extend the deadline for another two months. 

The state-owned asset management company Kedipes has received 4,269 applications since the scheme opened in December 2023, spokeswoman Chara Papakyriacou told the Cyprus News Agency (CNA) on Wednesday. 

Interest accelerated sharply as the July 31 deadline approached, with more than 300 applications arriving during the final five days. In total, 929 applications were submitted during the latest window, which opened in May. 

As a result, the Finance Ministry extended the deadline until September 30, giving vulnerable borrowers facing the possible loss of their main residence another opportunity to apply. 

However, the figures also show how slowly applications move from submission to completion. So far, 1,211 homes have been approved, while 846 have formally entered the scheme, meaning roughly one in five applicants has completed the process. Another 365 approved properties are still awaiting the final steps. 

Papakyriacou said the assessment remained “time-consuming”, as each case requires a property valuation, eligibility checks and procedures involving the land registry. At the same time, around 30 to 35 per cent of applications are rejected because they fail to meet the scheme’s criteria. 

For the 846 households already admitted, the secured non-performing loan has been written off and the beneficiaries have remained in their homes. 

Under the mortgage-to-rent scheme, ownership of an eligible home passes to Kedipes, while the former owner continues living there as a tenant. The arrangement runs for 14 years, or for life in the case of beneficiaries aged over 65. 

Beneficiaries, or their first-degree relatives, may also buy back the property after the first five years and before the 14-year period expires. If that option is not exercised, ownership remains with Kedipes. 

Eligibility is tied partly to the value of the main residence, which must not exceed €250,000. A higher ceiling of €300,000 applies to borrowers previously found eligible but financially non-viable under the Estia or Oikia debt-relief schemes. 

The financial cost is already substantial. In a July update, Kedipes said incorporating the first 800 homes had cost €97 million, while a further €60 million cash reserve was being maintained to finance the scheme. Since then, another 46 homes have formally entered it. 

Application forms are available online and through Kedipes’ district offices, with the new submission period running until September 30.