Not upheld: mortgage redemption process and account closure complaint against Bank of Ireland (UK) Plc

Decision detail

Summary

Mr Y complained about problems when redeeming his buy to let mortgage with Bank of Ireland, claiming he had not budgeted for the £400 monthly payment taken on 31 May 2025 and that this caused financial difficulty. Bank of Ireland had issued a redemption statement indicating approximately £200 was needed to redeem the account but did not adjust the direct debit, instead collecting the usual monthly payment and refunding the surplus of approximately £200 on 5 June 2025. The ombudsman found that Bank of Ireland followed its correct process, provided accurate information, and was not responsible for Mr Y's failure to arrange an alternative payment or ensure sufficient funds for the direct debit. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Bank of Ireland did not make an error in collecting the monthly direct debit payment as the account remained open and the firm had not agreed to adjust or cancel the direct debit. The redemption statement provided correct information about the redemption process and refund procedures. The ombudsman noted that as a buy to let mortgage is a business arrangement, Mr Y should have managed the redemption accordingly and could have arranged a payment of the exact amount needed prior to 31 May 2025. The ombudsman also found that complaint handling issues could not be investigated as they did not cause delays in resolving the underlying problem, which was not an error.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website