Pearse Doherty (Donegal, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

28. To ask the Minister for Finance the number of persons in mortgage arrears and negative equity who will be affected by the phasing out of mortgage interest relief; and the impact assessment that has been carried out regarding the way in which the phasing out of the relief will affect them. [44715/17]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I announced in Budget 2018 that I would extend Mortgage Interest Relief (MIR) for the remaining recipients of the relief on a tapered basis for a further three years, through to 31st of December 2020.

It has been established since Budget 2010 that MIR would expire on the 31st of December 2017 for all remaining recipients, and the Deputy will be aware that no new mortgages taken out since January 2013 have qualified for the relief. However, without this extension of MIR provided for in Budget 2018, each remaining relief holder would have faced a ‘cliff’ where the relief would have ceased entirely in January 2018. The three year extension has been put in place in order to alleviate the potential financial difficulties of this ‘cliff’, and to give the relief holders a transition period to adjust to the cessation of the relief on a phased basis.

As the Revenue Commissioners would not have information on whether mortgages are in arrears or if relief holders are in negative equity, there is no data available to answer the Deputy’s question as to the number of such individuals who are in receipt of MIR.

However, the Deputy may be aware that data released in September by the Central Bank on Mortgage Arrears and Repossessions Statistics for Quarter 2 of 2017 provided further evidence that progress is being made in addressing mortgage arrears.  The number of Private Dwelling House mortgage accounts in arrears continued to fall in Q2 2017, marking the 16th consecutive quarterly decline.  A total of 73,706 (10%) of accounts were in arrears at end-Q2, a decline of 3.6% relative to Q1 and a decline of 48% since Q2 of 2013.

My decision in Budget 2018 to extend MIR on a tapered basis for three years balances the competing objectives of allowing relief holders a transition period to adjust to the withdrawal of relief, while also considering the fairness to mortgage holders who have never held a relief on their mortgage interest, who may also face similar financial challenges in meeting mortgage repayments.