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Buachaill, Barrister
Category: Republic of Ireland Law
Satisfied Customers: 10955
Experience:  Barrister 17 years experience
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I was sold a property mortgage 7 years ago in euro on a sterling

Customer Question

I was sold a property mortgage 7 years ago in euro on a sterling property which has now resulted in a significant loss. Can I take a case of continuous miss selling against the bank?


Submitted: 3 years ago.
Category: Republic of Ireland Law
Expert:  UKSolicitorJA replied 3 years ago.
-Could you explain your situation a little more?
Customer: replied 3 years ago.

I live in the south of Ireland and have two loans with Bank of Ireland for properties in Belfast. I had an interest only mortgage for seven years, but now they want to return to capital payments which I can't affford for two reasons, 1. sterling has depreciated by 25% since the mortgage was taken out and 2. the price of the property has dropped. Also I would never have been able to repay the capital and interest amonts originally indicated. It is now apparent to me that the bank should never have given me a euro mortgage on a sterling property, this was in their own self interest to maximise returns for the bank in the south. I'm told that its statute barred in the south but it may not be in Northern Ireland. Can you give me some pointers?

Expert:  Nicola-mod replied 3 years ago.

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Customer: replied 3 years ago.

yes I'm ok waiting, but will I still be charged if you cant provide an answer?

Expert:  Nicola-mod replied 3 years ago.

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Customer: replied 3 years ago.

OK. Please look for someone to help.


Expert:  Buachaill replied 3 years ago.
1. At the outset, you need to realise that just because a bank has sold you a euro mortgage on a sterling property, this does not amount to mis-selling on the bank's part. Any allegation of mis-selling must involve more, such as that you were not in a position to understand the risks because you were financially unsophisticated and were engaging in an improvident bargain. Obviouly, you cannot make this contention if you were experienced in property matters. So long as you understood the risks involved in borrowing to fund a property purchase whether in one currency or another makes little difference, unless you suffered from some other infirmity which highlights you did not understand the risks and you should have been independently advised or prevented from taking out the mortgage.
2. BAnks are a commercial organisation, not a charity and it is perfectly lawful for the bank to attempt to maximise profits. Each person is expected to look after themselves. A lender, such as a bank, does not owe a duty of care to the customer. So it does not have to take care that the customer is insulated from all risks, such as currency movement, which arises in the transaction. additionally, you could have sought borrowings in sterling if you wished, as many investors in Northern property from the South, took out borrowings at the higher sterling rate to insulate themselves from the currency movements. Finally, market losses, due to the movement of property prices, are never compensated in law. No judge has ever granted damages just because property prices have moved. so this aspect of the case is totally uncompensateable.