Not upheld: Mortgage advice complaints complaint against Mortgages Plc
Financial Ombudsman decision DRN-4492135 of 2023-12-18T00:00:00+00:00. Mortgage advice complaints complaint against Mortgages Plc. Outcome: Not upheld.
Decision detail
| Reference | DRN-4492135 |
|---|---|
| Decision date | 2023-12-18T00:00:00+00:00 |
| Firm | Mortgages Plc |
| Product | Mortgage |
| Claim type | Mortgage advice complaints |
| Outcome | Not upheld |
| Remedy | None. The complaint was not upheld. |
Summary
Mr and Mrs M took out an interest-only mortgage in 2006 for £160,000 over 25 years at 6.2% fixed, then BOEBR plus 3% variable. Their monthly payments more than doubled to over £1,000 as interest rates rose. They complained about the mis-sale in 2020 (14 years later) and requested help with payments and a lower interest rate. The ombudsman found the mis-sale complaint time-barred and rejected the treatment complaint, finding Mortgages plc had no obligation to offer new rates as a closed book lender and had provided appropriate support options. The lender's term-end reminders were found to be good practice in line with regulatory guidance.
The Ombudsman's reasoning
The ombudsman found that the mis-sale complaint was time-barred under the six and three-year time limits applicable to the Financial Ombudsman Service. Regarding the treatment complaint, the ombudsman concluded that Mortgages plc had no obligation to offer new interest rates as a closed book lender, treated all customers equally, and provided appropriate support options. The lender's reminders about term end repayment were found to be good practice in line with regulatory guidance.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Mortgages Plc, all decisions | 53 | 22% |
| Mortgage advice complaints, all decisions | 3,925 | 18% |
| Mortgage, all decisions | 24,740 | 22% |
Source
Read the original decision on the Financial Ombudsman Service website