First time buyers who bought their homes at the height of the property boom are to benefit from an increase in the rate of mortgage interest relief.

Fine Gael TD, Joe McHugh, has confirmed that the Budget 2012 delivers their General Election pledge to increase mortgage interest relief to 30% for first time buyers who bought homes between 2004 and 2008.

The Minister for Finance, Michael Noonan, has since promised to honour the commitment.

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He said: "Today, the Minister for Finance, Michael Noonan, has announced that Mortgage Interest Relief will increase to 30% for first time buyers who bought homes between 2004 and 2008. This follows up on a key commitment which Fine Gael made before the 2011 General Election."

Mr McHugh added: "Clearly, this Government understands the difficulties facing so many people today."

Fine Gael TD, Brendan Griffin, has also welcomed the decision, reiterating the "huge importance to families who are struggling to meet their mortgage repayments."

He concluded: "The Minister is directly focusing on the negative equity generation, who feel so damaged after the economic turmoil of recent years…While this measure does not address mortgage related difficulties faced by all struggling homeowners, it will help a significant cohort of people and is a step in the right direction."

(HMcE/CD)