Partially upheld: incorrect fee charged; lack of transparency regarding product fee; unauthorised insurance application complaint against New Wave Financial Services Ltd

Decision detail

Summary

Ms S complained about mortgage advice from New Wave Financial Services Ltd following a re-mortgage in June 2025. She was charged £1,495 as a broker fee (the incorrect fee for a product transfer rather than a new application) and a further £1,495 product fee was added to her mortgage without her knowledge. She also complained about an unauthorised insurance direct debit. The ombudsman upheld the complaint regarding the incorrect broker fee, ordering its refund with 8% simple interest and £100 compensation for distress and inconvenience. However, the ombudsman declined to order refund of the product fee as it was clearly set out in the mortgage documents and represented the lender's charge for the interest rate Ms S selected. The insurance complaint was not upheld as Ms S cancelled before any payment was taken.

The Ombudsman's reasoning

The ombudsman upheld the complaint regarding the incorrect broker fee, finding New Wave's offer to refund it fair and reasonable. However, the ombudsman declined to require refund of the product fee, as it was clearly set out in the mortgage documents and Ms S accepted the interest rate directly on the lender's portal. The product fee was the lender's charge for the lower interest rate offered, and requiring its refund would place Ms S in a better position than was ever available to her. The insurance complaint was not upheld as Ms S cancelled before any payment was taken and likely was aware of the application. Compensation of £100 was awarded for the distress and inconvenience caused by having to pay an incorrect fee and the time taken to establish this, though no evidence of undue pressure was found.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website