Upheld: Mortgage administration / arrears handling complaint against Lenvi Servicing Limited
Financial Ombudsman decision DRN-5974603 of 2026-01-08T00:00:00+00:00. Mortgage administration / arrears handling complaint against Lenvi Servicing Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-5974603 |
|---|---|
| Decision date | 2026-01-08T00:00:00+00:00 |
| Firm | Lenvi Servicing Limited |
| Product | Mortgage |
| Claim type | Mortgage administration / arrears handling |
| Outcome | Upheld |
| Remedy | Lenvi Servicing Limited must: (1) Pay the difference between interest paid on the old mortgage at SVR and interest that would have been paid on the original mortgage offer (5.29%) from 1 January 2025 to 31 March 2025, plus 8% simple annual interest from date of payment to refund; (2) Pay the difference between interest paid on the old mortgage at SVR and interest that would have been paid on the new mortgage offer (4.88%) from 1 April 2025 to 24 July 2025, plus 8% simple annual interest; (3) Refund the costs of the February and July valuations, plus 8% simple annual interest from date of payment to refund; (4) Refund additional legal costs of £480 (£400 plus VAT), plus 8% simple annual interest from date of payment to refund; (5) Pay £500 compensation; (6) If Mr S redeems the help to buy balance in full between 1 January 2027 and when interest starts, reimburse any early repayment charge (offset by the interest rate saving of 0.41%), plus 8% simple annual interest; (7) Alternatively, if Mr S does not redeem until after 30 June 2027, reimburse help to buy interest paid up to 30 June 2027, plus 8% simple annual interest. |
Summary
Mr S purchased a property using the help to buy scheme and in 2024 sought to re-mortgage and repay part of his help to buy loan. He submitted his application to Lenvi in September 2024 with a valuation valid until December 2024. Lenvi failed to process the application promptly, taking no action until December and then requesting a re-signed form due to electronic signature issues. Despite chasing by Mr S and his solicitors, Lenvi continued to delay, requesting amendments and additional information throughout early 2025. The delays caused the valuation to expire and the mortgage offer to expire, requiring Mr S to obtain new valuations and mortgage offers. The re-mortgage finally completed on 24 July 2025, seven months after the initial application. Mr S incurred additional costs for valuations, higher variable rate interest, and legal fees, and his new fixed rate mortgage now extends to June 2027, preventing his planned repayment of the help to buy loan before March 2027 when interest begins. The ombudsman upheld the complaint and ordered Lenvi to compensate Mr S for all additional interest costs, valuation fees, legal costs, and £500 compensation, with alternative remedies for the extended mortgage term.
The Ombudsman's reasoning
The ombudsman found that Lenvi caused unreasonable delay in processing Mr S's application from September 2024 onwards. The key issue was determining the appropriate period for which Lenvi should compensate Mr S for additional interest costs. Lenvi argued it should only compensate until May 2025, after which it expedited matters. However, the ombudsman reasoned that even though Lenvi didn't directly cause further delays after May 2025, the ultimate cause of the problems continuing was Lenvi's earlier delay. Had completion occurred as it should have around end of December 2024, the valuation would not have expired before the mortgage lender could complete the deed of postponement, and Mr S would never have needed a second valuation. Therefore, Lenvi remained responsible for losses through June and July 2025. The ombudsman also held Lenvi responsible for both valuation fees (February and July) as neither would have been necessary but for Lenvi's initial delays. The ombudsman applied the principle of causation: Lenvi's early delays created the circumstances that necessitated the later valuation and extended the completion timeline, directly causing Mr S's financial losses.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Lenvi Servicing Limited, all decisions | 28 | 48% |
| Mortgage administration / arrears handling, all decisions | 13,042 | 19% |
| Mortgage, all decisions | 24,740 | 22% |
Source
Read the original decision on the Financial Ombudsman Service website