Lucinda Creighton (Dublin South East, Independent)
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71. To ask the Minister for Finance if any tax relief measures have been costed or considered by his Department to help alleviate the price premium imposed on standard variable rate mortgage holders on principal primary residences purchased between 2003 and 2008; his views that standard variable rate mortgage holders have incurred disproportionate interest hikes on their mortgages in the past six years relative to inflation; if he has considered any measures to help reduce the burden on standard variable rate mortgage holders for principal primary residences purchased between 2003 and 2008; and if he will make a statement on the matter. [36374/14]

Michael Noonan (Limerick City, Fine Gael)
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Firstly, I must confirm to the Deputy that neither the Central Bank nor I have any responsibility for any variation in the variable mortgage interest rate charged by regulated financial instutions.  The lending institutions in Ireland - including those in which the State has a significant shareholding - are independent commercial entities. I have no statutory role in relation to regulated financial institutions passing on the European Central Bank interest rate change or to the mortgage interest rates charged.  It is a commercial matter for each institution concerned.  It is not appropriate for me, as Minister for Finance, to comment on or become involved in the detailed mortgage position of mortgage holders.

The Central Bank has responsibility for the regulation and supervision of financial institutions in terms of consumer protection and prudential requirements and for ensuring ongoing compliance with applicable statutory obligations.  The Central Bank has no statutory role in the setting of interest rates by financial institutions, apart from the interest rate cap imposed on the credit union sector in accordance with the provisions of the Credit Union Act, 1997.

The mortgage interest rates that financial institutions operating in Ireland charge to customers are determined as a result of a commercial decision by the institutions concerned.  This interest rate is determined taking into account a broad range of factors, including European Central Bank base rates, deposit rates, market funding costs, the competitive environment and an institution's overall funding.

This Government is committed to helping address the particular problems faced by those that bought homes at the height of the property boom between 2004 and 2008. In this regard, in Budget 2012, I fulfilled the commitment in the Programme for Government to increase the rate of mortgage interest relief to 30% for first time buyers who took out their first mortgage in that period. This was the period during which house prices peaked. The 30% rate of relief is available regardless of mortgage type and is proportionate to the amount of mortgage interest paid, up to certain ceilings.

A mortgage holder qualifies for the increased rate if they made their first mortgage interest payment in the period 2004 to 2008 or if they drew down their mortgage in that period. In addition, the increased rate of tax relief for first time buyers who took out their first mortgage in that period will continue up to and including the 2017 tax year.