Is it legal for a bank to do this?

[MoonlightPicnic]

My DW's sister took out a mortgage some fourteen years ago to pay for a stable block, then out of the blue the bank called saying they're going to call in the loan as they should have sold her a commercial product as opposed to the personal one she signed on. I'm I alone in thinking this a little strange or is this actually legal practice? She has made all payments on time and to the full amount.

Sorry by Stable block I meant stable block and land.

Did she misrepresent what she wanted the loan for? Or was it their mistake?

If they believe she misled them about what the mortgage was for, to get a preferential rate on a residential mortgage for example, they are entitled to call in the loan with little notice.

If they made a mistake and missold the loan to her, I'd be expecting them to transfer it to a commercial mortgage and inconvenience her as little as possible.

Thank you anchor much appreciated

Something sounds not quite right. If she took out a mortgage, the bank would generally do a mortgage on survey the house, and a solicitor would have had to be involved. How would she then have used that money to buy stables? Is it possible that she is mistaken when she says she had a mortgage?