Blow to banks after High Court judge rules splitting mortgage debt is not sustainable

The ruling could mean banks may no longer be able to 'warehouse' part of a mortgage when a formal debt deal is put in place for a homeowner. Stock picture

Charlie Weston

Banks have been dealt a blow after the High Court ruled on how mortgage borrowings are to be treated in formal debt deals.

The ruling could mean banks may no longer be able to "warehouse" part of a mortgage when a formal debt deal is put in place for a homeowner.