Osborne on defensive over mortgage

The Conservatives' George Osborne today defended taking out a mortgage on his taxpayer-funded second home for more than the purchase price.

The shadow chancellor paid £445,000 for the farmhouse in his Cheshire constituency in 2000, yet three years later mortgaged it for £449,995.

Labour MP Martin Salter said: "It's clearly wrong to buy a house in cash and then expect the taxpayer to repay you more than you actually paid for it."

Mr Osborne, who designated his London family address as a second home after becoming an
MP, rejected claims that he "flipped" properties after taking out the mortgage.

His office stressed that he has not broken any Commons rules.