Not upheld: Mortgage administration / arrears handling complaint against Rooftop Mortgages Limited

Decision detail

Summary

Mr D and Mrs D complained to Rooftop Mortgages Limited about three buy to let mortgages that fell into arrears, resulting in the appointment of Law of Property Act Receivers to manage and sell the properties. Mr D sought full information on the property disposal process, updates on remaining properties, explanations for delays, and assurances regarding compliance with Consumer Duty Regulations and MCOB 13.3. The ombudsman did not uphold the complaint, finding that the Receivers acted as agents for Mr D and Mrs D under the Law of Property Act 1925 Section 109(2), making them the appropriate party to address Mr D and Mrs D's concerns, not Rooftop. Additionally, the mortgages were unregulated, so FCA rules and Consumer Duty provisions did not apply.

The Ombudsman's reasoning

The ombudsman determined that the mortgages were unregulated buy to let mortgages, so FCA MCOB rules and Consumer Duty provisions do not apply. Under the Law of Property Act 1925 Section 109(2) and the mortgage terms and conditions, once appointed, the Receivers acted as agents for Mr D and Mrs D, not for Rooftop. Therefore, Rooftop was not responsible for the Receivers' actions or omissions regarding property disposal and information provision. Mr D and Mrs D must raise their concerns directly with the Receivers, not with Rooftop.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website