Upheld: improper account closure and failure to follow own procedures complaint against Santander UK Plc

Decision detail

Summary

Mrs H complained that Santander improperly closed her offset mortgage account. On 13 March 2025, Mrs H called about a settlement figure but changed her mind about closing when told the amount was higher than expected. Santander then sent a letter on 1 April 2025 explicitly stating the mortgage would remain open unless Mrs H requested closure. Mrs H did not request closure, but Santander closed the account on 17 April anyway. The ombudsman upheld the complaint, finding that Santander's own letter created a clear commitment to keep the account open, and Mrs H's failure to respond meant Santander should not have closed it. The ombudsman ordered Santander to reinstate the mortgage (subject to Mrs H agreeing to a legal charge) and pay up to £1,000 towards legal costs.

The Ombudsman's reasoning

The ombudsman found that while Mrs H initially stated on the 13 March call that she wanted to close the mortgage, she changed her mind during that same call when informed of the higher settlement figure, explicitly saying she would wait to make any redemption payment. Critically, Santander's own letter dated 1 April 2025 clearly stated that if Mrs H did not contact Santander, the mortgage would remain open until the end of the term. Since Mrs H did not contact Santander after receiving this letter to request closure, it was not fair and reasonable for Santander to rely on the 13 March call as justification for closing the account on 17 April. The ombudsman rejected Santander's arguments about Mrs H changing her mind later, finding that even if true, this would not justify the closure given the clear written commitment made on 1 April.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website