Hey Heli Ice,
yes it's a mix of Scottish Gaelic and Norse. there are lots of places on the west coast of Scotland with similar Norse based names. And it is very prevalent in Orkney, Shetland and the Outer Hebrides.
There are lots of islands in the Outer Hebrides which end in 'ay'(oy) which is Norse for island - hence Taransay or Taran island.
I'm sure Iceland is exactly the same. Bloody Vikings!!
