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To let, or not to let?

Taking out an incorrect mortgage type, deliberately or not, is a matter which both the courts and your lender will not take lightly at all

27 February 2015

In 2007 a senior police officer, chief inspector Buttress, bought a farm and associated buildings with a residential mortgage. A little while later he decided to use some outbuildings as holiday lets and didn't tell his lender. As would be the case with almost any residential mortgage, this commercial use was in breach of the lender's conditions.

In 2011 he applied for a re-mortgage with the same lender to buy out his wife's interest in the farm as part of their divorce. Again, a residential mortgage was taken out with no mention of the ongoing commercial use.

Suddenly in March 2013, Buttress was publicly arrested in the police HQ itself, with a team of thirty police officers and a helicopter raiding his various addresses. The charge was mortgage fraud.

The prosecution seems to be on the premise that the chief inspector had gained financially by avoiding having to redeem his initial mortgage and by enjoying the lower residential inte...

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