Not upheld: Service failures generally complaint against Bank of Scotland plc trading as Halifax

Decision detail

Summary

Mr B and Mrs Z complained to Halifax after their application for additional borrowing was declined in June 2025, despite receiving assurances from a Halifax adviser in May 2025 that they should be able to borrow the required amount. They had incurred costs for a property valuation based on these assurances and subsequently had to re-mortgage with another lender, paying an Early Repayment Charge to Halifax. Halifax upheld the complaint in part, paying £810 in compensation but refusing to refund the ERC. The ombudsman found the settlement fair, as Halifax had no obligation to lend, had fairly assessed the application, and the complainants had accepted the ERC terms before receiving the adviser's assurances.

The Ombudsman's reasoning

The ombudsman found that while Halifax's adviser had raised expectations inappropriately, Halifax was under no obligation to lend and had fairly considered the application against its lending criteria at the time. The complainants had taken the fixed rate product in December 2024 before discussing the additional borrowing in May 2025, so the raised expectations did not influence their decision to accept the ERC terms. The decision to re-mortgage elsewhere was the complainants' own choice made in knowledge they would incur the ERC. The settlement of £810 already paid by Halifax was deemed fair compensation for the adviser's failure to manage expectations and the resulting valuation costs.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website