Judgment of €2.8m sought against couple over loans

Bank of Ireland is seeking judgment for €2.8 million against a couple over their alleged failure to repay loans.

Bank of Ireland Mortgage Bank has brought the proceedings against Kieran Carew and his wife, Pauline Harty, The Village, Newbridge, Co Kildare, arising from two loans drawn down in late 2006.

The case was entered into the fast-track Commercial Court list on Monday by Mr Justice Brian McGovern on the application of Robert Beatty, for the bank.

The court heard the couple say they have a defence to the bank’s claim and it is not entitled to summary judgment.

In its action, the bank claims the first of the loans, for €2.6 million, was used by the couple to finance the purchase of nine residential and residential buy-to-let properties.

The bank claims the agreed terms of the loan involved it being repaid over 300 months with repayments over the first seven years on an interest-only basis. The second loan for €535,000 was to finance repayment of monies owed to another financial institution and was to be repaid over 168 months.

The bank claims it held discussions in 2013 with the couple about their financial situation prior to the expiration of the seven-year interest only period. As a result of those discussions, the bank claims it made an offer to amend the terms of the first loan but the couple failed to sign up to its offer.

The bank says some repayments were made but these were not enough to prevent a build-up of arrears.

Bank of Ireland claims further discussions with the couple did not solve the difficulties and a demand for repayment of the total amount due, plus interest, was made in August 2014. Some €2.8 million, plus interest, remains due and owing, the bank says.