Upheld: Mortgage advice complaints complaint against Quilter Mortgage Planning Limited
Financial Ombudsman decision DRN-5312043 of 2025-02-06T00:00:00+00:00. Mortgage advice complaints complaint against Quilter Mortgage Planning Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-5312043 |
|---|---|
| Decision date | 2025-02-06T00:00:00+00:00 |
| Firm | Quilter Mortgage Planning Limited |
| Product | Mortgage |
| Claim type | Mortgage advice complaints |
| Outcome | Upheld |
| Remedy | Quilter Mortgage Planning Limited should pay Mr B and Miss W an amount equal to 25% of their savings in their Help to Buy ISA as at the time of completion of their property purchase. |
Summary
Mr B and Miss W complained that Harris Begley Lifetime Partners failed to inform them they were ineligible for a government Help to Buy ISA bonus (25%), which was included in their mortgage advice. The mortgage adviser calculated the bonus without verifying eligibility, and Miss W had expressed uncertainty about it. The clients discovered the ineligibility only 12 days before completion and had to use other savings and borrow from family to cover the shortfall. The ombudsman upheld the complaint, finding that the firm should have clearly stated it wasn't advising on bonus eligibility. Had it done so, the clients would have discovered the ineligibility earlier (the property price exceeded the scheme limit) and would have transferred funds to the Lifetime ISA in February, qualifying for the bonus there. The firm was ordered to pay 25% of the Help to Buy ISA savings as compensation.
The Ombudsman's reasoning
The ombudsman found that although Harris Begley did not formally advise on the Help to Buy ISA, it should have clearly stated it wasn't checking bonus eligibility and that the onus was on the clients to verify. Miss W's expressed uncertainty about the bonus, combined with the adviser's specific calculation of the bonus amount, would reasonably lead inexperienced first-time buyers to believe they would receive it. The adviser failed to provide clear, fair and not misleading information. Had the firm made clear it wasn't advising on this, the clients would have discovered the ineligibility sooner (due to the property price exceeding the limit) and would have transferred funds to the Lifetime ISA in February, giving them sufficient time to qualify for the bonus. The 12-day notice before completion was insufficient time to explore alternatives given the demands of moving and purchasing a first property.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Quilter Mortgage Planning Limited, all decisions | 32 | 27% |
| 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