Labour TD for Galway West Derek Nolan has welcomed a Government initiative to help homeowners struggling with mortgage repayments.

Mr Nolan said the Government had committed to helping people who purchased their first home during the property boom by increasing Mortgage Interest Relief to 30pc.

He said: "The Government is committed to addressing the problems faced by those who bought homes at the height of the property boom between 2004 and 2008. Many of the people who took out a mortgage at this time are now struggling to make ends meet.

"The Government has increased the rate of mortgage interest relief to 30pc for those who purchased their first home between 2004 and 2008, when prices were spiralling as the property sector boomed. As a result of this initiative a married couple who purchased homes in 2004 and 2005 will receive a maximum gain in 2012 of €900, bring their total maximum relief to €1,800."

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A married couple who purchased in 2006 and 2007 will receive a maximum gain of €2,000, bring their total maximum relief to €6,000. And a couple who purchased in 2008 will receive a maximum gain of €1,500, bringing their total maximum relief to €6,000. This increased rate of relief will apply up until the end of 2017 and it is estimated that 214,000 will benefit from this measure.

Mr Noland concluded: "I met with a family who are struggling to meet their mortgage payments. At the time they purchased their house both were working, but now one spouse has lost their job and the financial pressure they are under is causing this family untold hardship and stress. Making mortgage payments is the single biggest drain on resources. While this Government initiative will not solve their problems it will provide some relief and as such must be welcomed."

(CD)