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Ask Buachaill Your Own Question
Buachaill, Barrister
Category: Republic of Ireland Law
Satisfied Customers: 10975
Experience:  Barrister 17 years experience
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It is point one that I would like to follow up, Im not a property

Customer Question

It is point one that I would like to follow up, I'm not a property developer and I had no prior experience. I solely depended on the bank for advice. Is this worth following up on.

Another point I would like to mention, if you look at the numbers, when I originally took out the loan when it was due to convert to interest and principal I could not have afforded it, is there any recourse here that the bank were negligent?
Submitted: 3 years ago.
Category: Republic of Ireland Law
Expert:  Buachaill replied 3 years ago.

Buachaill :

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.

Buachaill :

2. Can you please Rate this answer and the previous answer you got.