Michael McGrath (Cork South Central, Fianna Fail)
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74. To ask the Minister for Finance the number of persons or mortgage accounts in receipt of tax relief at source in each year from 2012 to 2015 in tabular form; the projected cost of the scheme in 2015; and if he will make a statement on the matter. [42258/15]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners it is estimated that the number of individuals availing of mortgage interest relief and the cost of this scheme in the years 2012, 2013 and 2014, the latest year for which data are available, is set out in the table below.  This information is on the basis of returns in respect of eligible tax relief at source accounts.

The Deputy will be aware that mortgage interest relief has been abolished for homes purchased from 1 January 2013. Up until 2018 however, tax relief continues to be available for interest paid on qualifying home loans taken out on or after 1 January 2004 and on or before 31 December 2012.

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 per cent for first time buyers who took out their first mortgage in that period. This was the period during which house prices peaked. This 30% rate will continue to be applicable to these first-time buyers for the remaining years that mortgage interest relief continues to be available. In the absence of this change the mortgage interest relief available would have gradually reduced to a rate of 15%.

The system of mortgage interest relief is designed and targeted in such a way that the relief is of greater value in the early years of a qualifying loan where the interest represents a greater proportion of the repayment.  As the amount of interest payable reduces as a mortgage is paid down, the level of mortgage interest relief also reduces in tandem.