Homebuyers in Ireland are at risk of losing deposits worth tens of thousands of Euros as a result of an unexpected clause in the Central Bank’s new loan restriction measures.

The regulations include a requirement that a property valuation supplied for the purposes of obtaining a mortgage must not be more than two months old at the time when the loan is being drawn down. However, the vast majority of home deals take at least three months to complete, meaning buyers will be forced to pay for a second valuation.

And if the value of the property falls during the period between the first and second valuation - something which is becoming more likely as the same regulations begin reducing the numbers of home hunters - the bank cannot pay out the full sale price originally agreed in the mortgage terms.

Under the Central Bank rules, which came into force in February this year, loans given out should generally be no more than 80% of the house value. If a buyer has already paid a deposit and isn’t able to make up the shortfall from the new lower mortgage then they risk losing their deposit.