Not upheld: service quality, delays in re-mortgage processing, poor communication by appointed solicitors complaint against HSBC UK Bank Plc

Decision detail

Summary

Miss W complained to HSBC about delays and poor service from HSBC's appointed solicitors during her re-mortgage application process between November 2024 and June 2025. The delays meant she paid a higher variable interest rate on her previous mortgage from January 2025 until the new mortgage completed. HSBC accepted responsibility and paid £4,500 in compensation, but Miss W felt this was insufficient and referred the complaint to the FOS. The ombudsman found that whilst HSBC and its solicitors did not handle matters as well as they should have, the transaction was complex and HSBC's compensation was fair and reasonable, so the complaint was not upheld.

The Ombudsman's reasoning

The ombudsman acknowledged that whilst HSBC and its solicitors did not handle matters as well as they should have, the transaction was complex and not straightforward. The ombudsman found that even if everything had gone smoothly, Miss W may not have completed before her fixed rate expired on 31 January 2025, and she would have completed at a higher interest rate than ultimately achieved due to rate reductions during the process. The ombudsman was satisfied that HSBC's financial compensation more than covered the additional interest paid, and that £1,000 for distress and inconvenience adequately reflected the substantial distress experienced, particularly given Miss W's location abroad and the time zone difficulties in communicating with the solicitors.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website