Not upheld: poor service and communication during mortgage porting application; early repayment charge dispute complaint against more 2 life Ltd

Decision detail

Summary

Mr and Mrs C complained about poor service from more 2 life during their application to port a lifetime mortgage to a new property. The application stalled when underwriters required foam insulation removal before completion, a requirement more 2 life did not communicate clearly until June 2025, approximately four months into the process. Mr and Mrs C chose to redeem the mortgage rather than proceed, incurring an early repayment charge. The ombudsman found that while more 2 life caused some avoidable delays, there was no guarantee the vendor would have agreed to remove the foam insulation even with earlier notification, and other outstanding requirements also existed. The ombudsman upheld more 2 life's £500 compensation payment and did not require refund of the early repayment charge.

The Ombudsman's reasoning

The ombudsman acknowledged that more 2 life caused some avoidable delays and could have communicated the underwriters' requirements more clearly. However, the ombudsman found that even with earlier notification, there was no guarantee the vendor would have agreed to remove the foam insulation, as the vendor was under no obligation to do so. Additionally, the removal of foam insulation was not the only outstanding requirement; local authority consents were also needed. The ombudsman concluded that the mistakes made by more 2 life were not the sole reason the porting application failed, and therefore it would not be fair to require refund of the early repayment charge, which was correctly applied under the mortgage terms.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website