Ciarán Lynch (Cork South Central, Labour)
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Question 134: To ask the Minister for Finance the relief available to a person holding a variable rate mortgage from KBC Bank which has failed to pass on the ECB interest rate reduction; and if he will make a statement on the matter. [12701/12]

Michael Noonan (Limerick City, Fine Gael)
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Tax relief for mortgage interest on a home loan is tax relief given to mortgage holders based on the interest paid on a qualifying mortgage on a home i.e. a new mortgage for a home, a top up loan used for the purposes of developing or improving a home, a separate home improvement loan, a re-mortgage or a consolidation of existing qualifying loans, secured on the deeds of the home. The relief is paid at source by the mortgage provider either in the form of a reduced monthly mortgage payment or a credit to the funding account.

Various eligibility criteria apply to the relief and the rates and ceilings for which Mortgage Interest Relief is available depends on the date the loan was drawn down and whether the mortgage holder is a first time buyer or not. In any event, mortgages taken out prior to 1 January 2004 are no longer eligible for Mortgage Interest Relief. However, top up loans/equity release loans taken out since 1 January 2004 on these pre-2004 loans may be eligible for Mortgage Interest Relief, provided they satisfy the eligibility criteria. The details of the scheme are available at www.revenue.ie. Mortgage Interest Relief is set to be abolished at end 2017.