Republic of Ireland Law
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1. At the outset, you need to realise that a bank or any lender does not owe a duty of care in relation any customer borrowing money. This is the rule whether you are a property developer or a first time property investor. To owe any duty, you need to show that the bank overstepped the mark and took on the role of financial adviser to you in relation to all your affairs. This is very hard to show. Cases of this nature rarely succeed. You would have to show some positive advice letters telling you what to do. Secondly, even if you can make an allegation of negligent advice in relation to the bank, you will not win a case on the basis that you were never to repay an interest only loan. At some point, every interest only loan has to convert to a repayment loan. So it cannot be suggested that there is negligence in the bank asking you for the money back which it has loaned you, whether this is by converting the interest only loan to a repayment loan or otherwise. You can hardly suggest that the bank was never to get its money and you were to pay interest only forever.
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