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Mortgage complaints to the FOS jump 13%

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  • 15/05/2019
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Mortgage complaints to the FOS jump 13%
The last year has been the busiest in five years for the Financial Ombudsman Service, which revealed in its latest annual report that mortgage-related complaints have risen by 13 per cent.

 

The resolutions body received a total of 388,392 new complaints in 2018/19, up from 339,97 last year.

While payment protection insurance (PPI) continues to dominate the Ombudsman’s workload, accounting for more than 180,500 of those new complaints, mortgages have taken on a greater focus too.

Across the year there were 10,087 new mortgage-related complaints, up from the 8,917 registered in 2017/18.

This is behind only current accounts (41,069), payday loans (39,715), credit cards (13,940) and motor insurance (12,977).

The number of mortgage-related complaints which were upheld also rose, from 23 per cent last year to 26 per cent.

Nonetheless this remains below the overall rate of upheld complaints, which dropped from 34 per cent to 28 per cent over the period.

Complaints specifically against advisers rose from 1,678 to 1,915 over the year, with 26 per cent of mortgage-related issues upheld.

Mortgage Solutions has contacted the FOS to ask for more information about the types of mortgage complaints being received.

Earlier this year data from the Financial Services Compensation Scheme revealed a spike in complaints against mortgage brokers, which it blamed on claims management firms pursuing mortgage mis-selling claims with little or no evidence.

 

CMCs and small businesses

Caroline Wayman, chief ombudsman, noted that satisfaction with the FOS remained high and pledged to continue to use feedback in order to steer future improvements.

“That’s been especially important as we’ve been preparing to take on two new jurisdictions – for complaints about claims management companies (CMCs), and from more small business customers of financial services – and as we look ahead beyond PPI, to an increasingly diverse and complex mix of complaints,” she added.

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