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House buyers facing losses as banks review loan agreements

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A Dublin-based financial firm has been accused of "an unlawful breach" of a loan agreement for a multi-million euro Dublin 4 residence

Last month, the commercial division of the High Court heard that one lender, First Citizen Finance DAC, allegedly told a client: "Due to the Covid-19 pandemic, a 20pc reduction in value (of the loan) would be required in the current market." With borrowers left short of the necessary funds to complete property transactions agreed before March and vendors insisting that sales be completed on the due date, the big losers are prospective property owners who have paid hefty non-refundable deposits but now can't access funds to complete sales.

In a sworn affidavit, First Citizen Finance has been accused of "an unlawful breach" of its binding commitment to provide a multi-million euro loan for an "exceptional" high-end Dublin 4 residence. The finance company claims the pandemic has brought about "a material adverse change" to the circumstances of the loan.