Banks ‘saying no to loans for cut-price property’

BANKS have been accused of refusing to lend money to potential homeowners who have secured cut-price property deals.

Banks introduced minimum property value (MPV) limits during the height of the housing boom, which experts say was a way of avoiding taking on properties in less desirable areas. This practice is illegal in the US.

Director of the Irish Mortgage Corporation, Frank Conway, said in recent months they have been running into problems where banks are refusing to lend where the property price is too low.