Upheld: Mortgage administration / arrears handling complaint against Quilter Mortgage Planning Limited

Decision detail

Summary

Miss B complained that MDS Financial Group's adviser failed to handle her request for a new mortgage interest rate product in a timely manner, causing her to miss the opportunity to secure a lower rate before interest rates increased significantly following the 23 September 2022 mini-budget. After Miss B initiated contact in September 2022 and promptly provided requested documents, the adviser repeatedly failed to respond or communicate as promised, citing personal circumstances. Miss B was forced to seek advice elsewhere and ultimately took a product at 4.84% instead of the 3.94% rate that would have been available had the adviser acted promptly. The ombudsman upheld the complaint and ordered MDS to compensate Miss B for the difference in interest she will pay over the 10-year term, plus £250 for trouble and upset.

The Ombudsman's reasoning

The ombudsman found that Miss B had a reasonable expectation the adviser would arrange a new mortgage product for her, based on the adviser's actions (requesting documents, promising to review them, discussing options) and their prior relationship. The adviser's failures to respond and communicate in a timely manner caused Miss B to miss the opportunity to secure a lower rate before 23 September 2022, when interest rates increased significantly following the mini-budget. Given MDS's stated five-working-day turnaround time and Miss B's prompt provision of documents, she should have been able to book a product by 22 September 2022 if the adviser had been responsive. The ombudsman determined Miss B would most likely have taken the 3.94% product with a £999 fee (matching what she ultimately took) rather than the 4.14% fee-free option.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website