Mortgage complaints have increased by 55% compared with the same period in 2013, data from the Financial Ombudsman Service has revealed.
More than half of the complaints were still PPI related. Other favorites included disputes over valuations, complaints about the advice to take out the wrong mortgage product and upfront fees being charged where no mortgage offer is forthcoming.
Then there are the complainants who are struggling to meet their mortgage repayments, whose complaints are varied, but generally focus on “unfair” increasing payments.
An area which has contributed to the increase is complaints about “mortgage administration.”
As we don’t sell PPI, do valuations, or charge upfront fees, we are pretty much in the clear on the complaints front, but I can confirm that our usually slick administration service has been tested to the limits following the new mortgage regulations this year. This has left clients – if not quite ready to go into battle with the Ombudsmen, somewhat agitated.
I telephoned a client who commented on our customer questionnaire, that the “whole process took twice as long as it should have, as the lender kept on asking ridiculous questions.” To be fair the lender asked all the usual questions when the application arrived, but they were followed up by 6 questions (over a 2 week period) regarding direct debit payments to “The Dogs Trust,” “British Gas Homecare” and “Sew magazine Subscription.” What were they for? were they compulsory?, can they be cancelled without a charge?
I checked the notes, and clearly the underwriter had left no stone unturned, before he finally issued the offer of £120,000, to a client earning over £75,000! To be fair, lenders have started to ease up on the new “affordability checks.” But for the record: The Dogs Trust, is The Dogs Trust, British Gas Homecare, come out for plumbing / boiler / drains and electric problems and Sew magazine subscription is a subscription to Sew magazine!
If you need any mortgage advice please get in touch with one of our advisers.
Recent posts
There has been a rise in both rent and mortgage costs over the last three years, with renters seeing a greater increase in their monthly payments than those with a mortgaged property.
Delayed Start Mortgages
8 days ago
The new Delayed Start Mortgage launched by Skipton Building Society allows first time buyers to postpone the first three mortgage payments. This product has been designed to help soften the blow of moving in costs for first time buyers.
Green Mortgages | Rewards and Benefits
10 days ago
Mortgage lenders are starting to recognise their “Green” responsibilities when it comes to the different products they offer.
A recent study by Boon Brokers where 1,000 people who had used an estate agent over the last year were surveyed, showed that a whopping 52% said they were pressured into using the estate agents’ in-house mortgage broker.
When will mortgage rates fall further?
20 days ago
Analysts are predicting further rate cuts this year, with the next one possibly coming down to 4% when the Bank of England’s Monetary Policy Committee meet on Thursday 7th August 2025.
The Financial Conduct Authority (FCA) has shared new changes to mortgage rules with the aim to simplify remortgaging, and encourage competition within the mortgage market.
Lloyds boost lending for first-time buyers
27 days ago
Lloyds Banking Group has jumped on the bandwagon to boost lending for first-time buyers as they allocate an additional £4 billion to help first-time buyers on to the property ladder.
As the Loan to Income (LTI) cap has been increased to 5.5 times income, applicants who fit the First Time Buyer Boost criteria could borrow up to 22% more.
The government is introducing mortgage reforms to boost homeownership, stimulate economic growth, and make the housing market more accessible, especially for first-time buyers.
Chancellor Rachel Reeves has announced the most significant mortgage reforms in over a decade—great news for those dreaming of homeownership.
More information
Trusted by
