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Buyers' deposits put at risk by banks' new lending checks, warn lawyers

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PA

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Prospective homebuyers are being put at risk of losing their deposits due to problems which have arisen since Covid-19 lending checks were introduced by banks, the Law Society has warned.

Solicitors say clients committed to buying property have been encountering difficulties drawing down loans already approved by lenders.

The issue arose after the Banking and Payments Federation Ireland (BPFI) issued new guidance about mortgage approvals and the drawdown process on April 20.