Not upheld: misleading information about mortgage redemption amount complaint against Barclays Bank UK PLC

Decision detail

Summary

Mr and Mrs N complained that Barclays misled them about their mortgage redemption amount. They expected to redeem based on a figure shown in their 30 September 2025 annual mortgage statement but were charged £2,312.34 more. The ombudsman found that while the statement could be misunderstood in isolation, it contained clear language indicating it was an estimate and directed customers to obtain a redemption statement. The figure was reasonably calculated net of the MCA balance, and Barclays explicitly directed them to obtain a formal redemption statement for accuracy. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that while the annual mortgage statement could be misunderstood in isolation, it contained clear language indicating it was an estimate and directed customers to obtain a redemption statement. The figure was reasonably calculated net of the MCA balance since the MCA would close with the mortgage at redemption. Barclays did not mislead Mr and Mrs N because it explicitly directed them to obtain a redemption statement for an accurate figure, and the difference in amount was due to the nature of the offset mortgage with daily interest calculations and varying balances, not any misrepresentation by Barclays.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website