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I've had this done this extensively in our Victorian house. No major problems but expect some cracking as it dries out and generally shifts around.
It was already expensive (we've ended up doing most of a 5 bedroom townhouse in various stages), to do the whole thing in lime mortar / lime plaster etc would have been massive.
ChasnotRobert
Hovis
It's already too late, totally covered in fibreglass mesh and bonding now.
You're probably right, but my fingers are crossed you're not!