These cases should be followed.
By Tim Healy
Tuesday April 24 2012
A GROUP of homeowners who don't want their bank to switch their mortgages from interest-only have taken their case to the High Court.
Seventy-four sets of proceedings have been launched against Irish Life and Permanent TSB after the bank announced last year it was going to make the homeowners pay back the capital on the loan as well as the interest.
Yesterday Mr Justice Roderick Murphy gave permission for four test cases to be mounted.
The proceedings relate to mortgages taken out over the period from the end of 2004 to 2007 and range from €300,000 to €400,000 each.
All agreed to pay interest for the full term of the mortgage, and to pay off the capital at the end of the agreed term or when the property was sold, whichever happened first.
The High Court yesterday heard that some of those who had taken the proceedings were in financial difficulties, and some had taken out the mortgages to buy property as a pension.
Judge Murphy ruled that two cases already at an advanced stage of preparation would go ahead and two more cases could act as 'pathfinder cases'.
He said this would be enough for a representative decision to be made.
- Tim Healy