Not upheld: unsuitable mortgage recommendation / mis-selling complaint against J P Mortgages Independent Mortgage Brokers

Decision detail

Summary

Mr S and Mrs M complained that J P Mortgages recommended an unsuitable mortgage because they intended to build another property on the land and split the title, but the lender does not permit this. The investigator upheld the complaint, finding the broker was likely informed of these intentions based on inaccuracies in the fact find document. However, the ombudsman reversed this decision, finding no evidence that the broker was told of the self-build plans in August 2021, as all concrete enquiries and evidence of these plans dated from February 2022 onwards, after the mortgage application. The ombudsman held that consumers must disclose their intentions and brokers are not expected to proactively check planning records. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman disagreed with the investigator's conclusion that Mr S and Mrs M informed the broker of their self-build intentions. The evidence provided by Mr S and Mrs M (timber quotes, Help to Build registration, architect drawings) was all dated after the August 2021 fact find and mortgage application, suggesting these plans were not concrete at the time the mortgage was recommended. The ombudsman found that brokers cannot be expected to proactively check planning permission records and that the onus is on consumers to disclose their intentions. Even if the broker had known, the ombudsman was not persuaded that the lender's refusal to split the title was the sole reason the self-build did not proceed, as Mr S and Mrs M could have proceeded with work and applied for title split afterwards. The ombudsman also noted the significant delay in bringing the complaint (2023 discovery to July 2025 complaint) suggested it was not a priority.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website