An Ennis-based financial consultant says there’s an onus on the Government and Banks to step up and protect the rights of prospective buyers and mortgage holders.
Some people who received mortgage approval before the pandemic have since had their drawdown blocked by their financial institution because their employer availed of the COVID-19 wage support scheme.
In some cases, this is costing would-be homeowners thousands of euro.
Fears have been expressed by prospective buyers across the country that they could lose deposits worth thousands of euro on their new homes.
It comes amid reports that some financial institutions have temporarily blocked people from drawing down their mortgage because they’re recipients of wage subsidy payments.
The Irish Examiner reports that those affected were told that the decision is affecting people who have previously been approved for a mortgage, but who haven’t drawn down the money.
Banks have reportedly said that the process would be reviewed once their employer was in a position to pay the salary in full without state support.
Around 1.2 million people are on some form of income supports.
Tommy Corbett of Carey Corbett Financial Solutions in Ennis says the actions being taken by some banks make no sense.
Separately, new research shows almost half of home repossessions who have been pursued by high street banks and not so-called vulture funds.
Banks supervised by the European Central Bank and the Central Bank account for 46 per cent of cases in the period between April and December of last year.
They are AIB, EBS, Permanent TSB, Bank of Ireland, Ulster Bank and KBC.
The study by NUI Galway lecturer Dr Padraic Kenna said vulture funds were taking just one-third of cases and he says the Central Bank has questions to answer.
All possession cases in circuit courts throughout Ireland were analysed as part of the research.
David Hall, from the Irish Mortgage Holders Organisation, expects more repossessions from vulture funds in the coming years.
Michael Glynn, Clare FM, first for local news.