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

Decision detail

Summary

Mr D complained to Rooftop Mortgages Limited about a buy to let property that was sold by Law of Property Act Receivers appointed due to mortgage arrears. Mr D sought information about the sale process, updates on remaining properties, explanations for delays, and assurances regarding Consumer Duty and MCOB compliance. Rooftop declined to log the complaint initially, later providing a completion statement and directing Mr D to contact the Receivers. The ombudsman found the complaint not upheld because the Receivers, although appointed by Rooftop, acted as Mr D's agents under the Law of Property Act 1925, making them responsible for their own actions. Additionally, the unregulated nature of the mortgage meant MCOB and Consumer Duty provisions did not apply.

The Ombudsman's reasoning

The ombudsman determined that although Rooftop appointed the Receivers, the mortgage terms and the Law of Property Act 1925 Section 109(2) establish that the Receivers act as the borrower's agent, not the lender's agent. Therefore, the Receivers' acts and omissions do not fall within Rooftop's liability. The ombudsman also noted that the mortgage was unregulated, so MCOB and Consumer Duty provisions do not apply. Mr D must direct his queries and complaints about the property sale and Receivers' actions directly to the Receivers.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website