Not upheld: Account administration errors complaint against Godiva Mortgages Limited

Decision detail

Summary

Mr G complained that Godiva Mortgages Limited incorrectly calculated his mortgage redemption amount on 14 August 2025 and failed to refund an alleged overpayment of £1,301.72. Mr G believed he only owed interest for three days (11-14 August) rather than a full month's payment of £1,760.35. Godiva issued two redemption statements—one before and one after the August direct debit was processed—and maintained that the final statement properly credited the payment. The ombudsman found that Mr G's calculations were based on an incorrect understanding of when interest was charged on his mortgage (the first of each month, not the payment date), and that Godiva's practice of requesting a full monthly payment before redemption was standard and reasonable. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Godiva's two redemption statements clearly showed that the August direct debit payment had been credited, as evidenced by the difference between the two statements and the explanation within them. The ombudsman determined that Mr G's calculations were based on an incorrect assumption about when interest was charged on the mortgage—he assumed interest was charged on the payment date (10th of each month), when in fact the mortgage terms clearly state interest is charged on the first of each month. The ombudsman explained that most lenders request a full monthly payment even when redemption is anticipated, to avoid arrears if redemption does not occur. The ombudsman concluded that while a small discrepancy existed between the two redemption statements and the direct debit amount, this was likely due to in-month adjustments Godiva makes, and the FOS does not audit mortgages to verify calculations to the penny.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website