Partially upheld: Mortgage administration / arrears handling complaint against Cambridge Building Society

Decision detail

Summary

Mr D and Mrs J complained that Cambridge Building Society caused unnecessary delays in processing their mortgage application, resulting in missed stamp duty holiday savings and rental costs. The surveyor identified potential combustible cladding and required an EWS1 form, which the freeholder disputed. Cambridge relied on the surveyor's professional opinion and eventually accepted the fire safety report, issuing a mortgage offer on 17 August 2021, but delayed notifying the applicants by approximately one month. The ombudsman found Cambridge was entitled to rely on the surveyor's expert assessment and that no guarantee of meeting the stamp duty deadline had been provided, but upheld the complaint regarding the one-month notification delay, awarding £150 compensation.

The Ombudsman's reasoning

The ombudsman found that Cambridge was entitled to rely on the qualified surveyor's professional opinion that an EWS1 form was required, even though the building was below six storeys, because RICS guidance permits EWS1 requirements for smaller buildings where fire safety risks are identified. The freeholder's disagreement did not invalidate the surveyor's expert assessment. Cambridge was entitled to satisfy itself that the property was adequate security before lending. However, the ombudsman identified a one-month delay between acceptance of the fire safety report and notification to applicants, which was unreasonable. The ombudsman rejected claims that Cambridge caused delays in valuation instruction or that the applicants were guaranteed to meet the stamp duty deadline, noting the explicit warning in the decision in principle.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website