Not upheld: Mortgage administration / arrears handling complaint against West One Secured Loans Limited

Decision detail

Summary

Mr S complained to West One about his second charge mortgage, questioning why the balance had only reduced by approximately £2,000 after five years of payments and expressing concern about the transition to a variable interest rate. West One explained how the mortgage worked, and the complaint was closed. The ombudsman found that West One had properly disclosed the variable rate terms in the mortgage offer and had correctly administered the mortgage according to its terms, with the minimal capital reduction being consistent with standard mortgage amortization patterns where most capital is repaid in the latter stages of the term.

The Ombudsman's reasoning

The ombudsman explained that on a 25-year repayment mortgage, early payments primarily cover interest with minimal capital reduction, and the majority of capital is repaid in the last third of the term. Given that five years had passed, the small reduction in balance was consistent with normal mortgage amortization. The mortgage offer clearly disclosed the variable rate terms, making West One's responsibility limited to providing required regulatory information, which it did. The broker, not West One, was responsible for ensuring Mr S understood the mortgage.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website