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The Number of Mortgage Complaints is Down. The number of complaints received by the Financial Ombudsman Service (FOS) fell during 2010/11.

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The Number of Mortgage Complaints is Down.

May 18, 2011 at 4:40 AM

The number of complaints received by the Financial Ombudsman Service (FOS) fell during 2010/11 to 7,067. It was 7,469 in 09/10

Over two thirds of complaints were related to banks whilst 16% related to mortgage brokers and just 8% to building societies Independent Financial Advisers (IFAs).

The biggest numbers of problems the FOS receive are just admin type errors which beg the question why can't they process a mortgage application without messing it up?

There was a big increase in the number of complaints from people who were just looking to remortgage with a new lender or change their deal with their current lender.

The problems/complaints occurred when the lenders said the customers don't meet the banks’ lending criteria. Which when you've already had a mortgage with them for several years really annoys people. Understandable in my view as you were obviously accepted originally so why are you no longer acceptable to them?

This is just down to tightened lending criteria, resulting in the consumer no longer fitting the bill.

The ombudsman is unable to influence lending criteria as it's up to the banks who they lend to. Remember the golden rule; the banks have the gold, so they make the rules.

Other complaints involved the decision by a lender to significantly reduce the upper age-limit applying to the term of a mortgage – or to require the consumer to provide proof of retirement income.



Tags: mortgage news
Category: Mortgage News

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