(1) Section 187 of the Principal Act is amended by inserting the following definitions:

"'mortgage interest' means the proportion of any amount payable by a person to a mortgage lender which is for the time being attributable to interest payable under an agreement entered into by that person with the mortgage lender for the purpose of defraying money employed in the purchase, repair or essential improvement of the sole or main residence of that person or to pay off another loan used for that purpose but does not include interest payable in relation to such agreement by virtue of a delay or default in making a repayment under that agreement;

'mortgage lender' has the meaning given to it by section 2(1) (as amended by section 2 of, and Schedule 3 to, the Central Bank and Financial Services Authority of Ireland Act 2004) of the Consumer Credit Act 1995;".

(2) Section 198 (as amended by section 25 of the Social Welfare and Pensions Act 2007) of the Principal Act is amended -

(a) in subsection (2), by substituting "and, subject to subsection (3E), the amount of such a payment" for "and the amount of such a payment",

(b) in subsection (3), by inserting ", (3E)" after "(3D)",

(c) by inserting the following subsection after subsection (3D):