Is this mortgage fraud?

Girthhitch

We renovated and rented out a house last year. There is no mortgage on the property at the moment, but  we wanted to remortgage an easily affordable amount on the house to largely pay off a tax bill.

If we give the other reasons for wanting the mortgage, such as: to cover some of the refurb costs, to redecorate our house for a trial of an  airbnb type venture etc etc, which are all true; but just omit the tax part of the reason, is this considered fraud? I would expect something that grey to be quite fine tbh.

Am I wrong?

Cheers.

Girthhitch

Perhaps in a few years someone would change their mind about the exact proportion on money spent on certain things etc. Seems fine to me..

jimjames

If you used your savings for the refurb costs and now need those savings to pay tax bill then saying you are remortgaging to cover refurb would be correct.

serpico100

Why not just be honest? As you have lots of equity in the house there is no problem remortgaging to pay a tax bill. Many people remortgage to pay off existing debt. It’s more common than you may think

ACG

Is this a residential mortgage you are applying for? 
If so, some lenders will lend for tax purposes. 
I dont think any residential lender will allow you to let out the property on airbnb or any other site. 

But in short, you have to be honest otherwise it is fraud. Some lenders ask what the money will be used for and just give you 1 option, so that would be what it is predominantly for. Other lenders want a breakdown of every penny. 

MWT

Surely this should be a Buy-to-Let mortgage anyway? ...so those sort of 'residential' mortgage questions are not going to come up.