Not upheld: contractual rights to charge interest on transferred mortgages complaint against Topaz Finance Limited trading as Jasper Mortgages

Decision detail

Summary

Mr D complained that Jasper Mortgages had no contractual right to charge and retain interest on his portfolio of buy-to-let mortgages, claiming Jasper failed to demonstrate entitlement or provide documentary proof. The mortgages had been transferred from the original lender M to Jasper in 2018. The ombudsman found that the original mortgage contracts explicitly allowed transfer without Mr D's consent and stated that the new lender would have identical rights to the original lender, including the right to charge interest. These rights were confirmed in the goodbye/hello letters issued at transfer. The ombudsman concluded that no additional documentary proof was required and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that the mortgage contracts clearly allowed transfer of the mortgages without Mr D's consent, requiring only written notice. The contracts explicitly stated that the new lender would have the exact same rights as the original lender, including the right to charge interest. These rights were confirmed in the goodbye/hello letters issued at the time of transfer in 2018. The ombudsman concluded that no additional documentary proof beyond the mortgage contracts, terms and conditions, and transfer letters was required to establish Jasper's contractual entitlement to charge interest. The ombudsman noted that if Mr D wished to test the strict legal position, he was free to pursue legal action.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website