The Government has ruled out introducing mortgage interest relief for owner-occupiers who have been impacted by recent interest rate rises which have added to their monthly bills.
Speaking in the Dáil, Minister for Finance Michael McGrath acknowledged that many mortgage holders were under significant pressure, as some lenders are charging up to 7% interest on home loan repayments but warned that such a move could cost taxpayers €655m per year.
Sinn Féin had previously urged the Government to tackle "inhuman" hikes which it says are forcing people to choose between paying the mortgage or medical bills.
The party's Finance Spokesperson Pearse Doherty said that 200,000 homeowners with tracker mortgages face a "significant and immediate" impact due to the latest hike. The European Central Bank recently raised its rates by a further 0.5%. This puts their standard interest rate at 3% - the highest it has been since 2008.
While he rejected the idea of introducing mortgage interest relief, Minister McGrath appealed to all lenders to treat customers fairly and sympathetically and to work with them to prevent arrears, which are at their lowest level since 2010.
Taoiseach Leo Varadkar also ruled out any restoration of mortgage interest relief.
He said: ““It’s not something we are considering, but it’s not something we rule out for the future.”
Sinn Féin had argued that mortgage interest relief should be set at 30% with a maximum benefit of €1,500 and last for a year but Minister McGrath said this could amount to a cost of €655m to finance.
