The UK Supreme Court (UKSC) has overruled all lower courts in deciding that One Savings Bank should have realised that Catherine Waller-Edwards was acting under the undue influence of her cohabitant when she agreed a remortgage of their home. The UKSC unanimously held that a creditor is put on inquiry in any non-commercial hybrid transaction where some of the borrowing served to discharge the debts of one of the borrowers and so might not be to the financial advantage of the other (Waller-Edwards v One Savings Bank, 2025 UKSC 22). Waller-Edwards’ cohabitant had secretly used the loan proceeds to make a divorce payment to his ex-wife and pay off a charge on his property, instead of paying off his debts as had been agreed, eventually resulting in the property being repossessed.
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