Partially upheld: failure to provide clear information; poor record-keeping; breach of Consumer Duty complaint against First Complete Limited trading as PRIMIS Mortgage Network (appointed representative: Arrowhead Financial Limited)

Decision detail

Summary

Mr D and Mrs V complained that PRIMIS failed to inform them that lender H required independently signed off accounts for Mr D's income verification when they sought to port their mortgage and borrow additional funds in May 2024. The broker did not communicate this requirement until 26 September 2024, forcing them to switch to a different lender and incur an early repayment charge of £8,217.10. The ombudsman upheld the complaint regarding the broker's failure to communicate requirements clearly and fairly, but declined to refund the early repayment charge as it cannot be established that lender H would have approved the application even with properly signed accounts. The ombudsman awarded £650 compensation for distress and inconvenience caused by the broker's poor conduct and three months of uncertainty.

The Ombudsman's reasoning

The ombudsman found that PRIMIS failed to communicate lender H's requirements clearly and fairly, with no written confirmation and poor record-keeping. The broker's account was inconsistent and unreliable. However, the ombudsman declined to refund the early repayment charge because: (1) it cannot be established that lender H would have approved the application even with independently signed off accounts, as affordability assessment was still required; (2) Mr D and Mrs V had time to pursue the application with lender H through another broker but instead misrepresented the position to the new broker; and (3) the evidence does not support that the sale would have fallen through if delayed. Compensation for distress and inconvenience was awarded as the broker's conduct caused considerable upset and uncertainty over three months.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website