Not upheld: Travel / life insurance claim disputes complaint against A M Mortgages (UK) Limited (trading as The Mortgage Bureau)

Decision detail

Summary

Mr and Mrs R complained to the Financial Ombudsman Service about A M Mortgages (trading as The Mortgage Bureau) regarding the sale of life insurance advice and associated fees when obtaining a mortgage in 2025. They alleged lack of transparency regarding fees and unsuitable insurance recommendations, particularly given Mr R's health condition. TMB's terms provided for a £495 base fee plus a conditional £1,795 fee that would be waived only if recommended life insurance policies were taken out and maintained for 48 months. When Mr and Mrs R declined the insurance recommendations, TMB charged the full £2,290 fee. The ombudsman found that TMB's insurance recommendations were suitable to the customers' circumstances and budget, and that all fees were clearly disclosed in multiple signed documents, therefore not upholding the complaint.

The Ombudsman's reasoning

The ombudsman found that TMB's recommendations for life insurance were suitable based on the customers' financial circumstances, identified protection needs, and affordability. The ombudsman noted that suitability does not mean the most suitable advice possible, but rather advice suitable to the customers' budget and needs. The fee structure was clearly disclosed in multiple documents signed by Mr and Mrs R, including the engagement letter and suitability letter, with explicit explanation of the conditional waiver. The ombudsman rejected the argument that fees were hidden or excessive, finding no persuasive evidence that customers were led to believe the maximum cost would be £495.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website