Upheld: errors in mortgage application and adviser conduct; inadequate mortgage amount calculation; failure to obtain updated mortgage offer in timely manner complaint against Countrywide Principal Services Limited trading as Countrywide Mortgage Services

Decision detail

Summary

Mr and Mrs S complained that Countrywide made errors during their mortgage application that resulted in financial loss and distress. The adviser calculated an insufficient mortgage amount (due to errors in calculating the Help to Buy loan redemption and omitting solicitors' fees) and failed to promptly obtain an updated mortgage offer despite being informed of a hard completion deadline of 25 July 2025. This left Mr and Mrs S needing to find £10,000 from family and subsequently take out a personal loan just days before completion. Countrywide upheld the complaint and offered £99 refund and £800 compensation, but Mr and Mrs S sought full payment of the personal loan. The ombudsman upheld the complaint but rejected the loan payoff request, instead awarding £1,200 total compensation for distress and inconvenience, finding that while the debt would have existed regardless with different repayment terms, the adviser's conduct caused unnecessary stress.

The Ombudsman's reasoning

Countrywide accepted errors were made in the mortgage application process. The adviser failed to ensure the mortgage covered all necessary costs and failed to chase the lender promptly for the updated mortgage offer despite being informed of the hard completion deadline. While Mr and Mrs S will ultimately pay less interest on a 5-year personal loan than they would have on a 30-year mortgage, they were not budgeted for the additional monthly payments and experienced significant distress, particularly given Mrs S's pre-existing mental health issues. The adviser's failure to follow up on the mortgage offer created unnecessary stress when Mr and Mrs S discovered they lacked a valid offer five days before completion. However, it is not reasonable to require Countrywide to pay off the personal loan as the underlying debt would have existed regardless, merely with different repayment terms.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website