Upheld: Mortgage administration / arrears handling complaint against Santander UK Plc
Financial Ombudsman decision DRN-6464822 of 2026-07-01T00:00:00+00:00. Mortgage administration / arrears handling complaint against Santander UK Plc. Outcome: Upheld.
Decision detail
| Reference | DRN-6464822 |
|---|---|
| Decision date | 2026-07-01T00:00:00+00:00 |
| Firm | Santander UK Plc |
| Product | Mortgage |
| Claim type | Mortgage administration / arrears handling |
| Outcome | Upheld |
| Remedy | Refund £1,862.40 of legal costs directly incurred in relation to the matrimonial charge; pay interest at 8% simple per year from the date Ms R paid the legal costs until settlement; pay £1,000 for distress and inconvenience; provide a written apology for both the handling of the application and the handling of the complaint. |
Summary
Ms R complained that Santander unfairly refused to transfer her joint mortgage into her sole name following her divorce. Santander required her to obtain evidence that two charges had been removed from the property, including a 'matrimonial charge' that Santander itself had recorded based on a divorce warrant. Both Ms R and her ex-husband's solicitors disputed that the warrant created any legal charge. Santander failed to recognize Ms R's vulnerable circumstances (domestic abuse survivor, financial difficulty, disabled son, risk of homelessness) and did not clearly explain that she could not remove a charge that Santander had recorded. The ombudsman upheld the complaint, finding Santander treated Ms R unfairly and hindered the investigation by withholding relevant information. Santander was ordered to refund £1,862.40 in legal costs, pay 8% interest, provide £1,000 compensation for distress and inconvenience, and apologize.
The Ombudsman's reasoning
The ombudsman found that Santander unfairly recorded a matrimonial charge against the property based on a divorce warrant, when both Ms R and her ex-husband's solicitors disputed that any legal charge was created. Santander then required Ms R to remove a charge that it had itself recorded, making the task impossible without Santander's assistance. Santander failed to recognize Ms R's vulnerable circumstances (domestic abuse survivor, financial difficulty, disabled dependent son, risk of homelessness) and did not provide clear, fair, and not misleading information about the charge. The ombudsman also found that Santander hindered the investigation by failing to promptly provide relevant contact notes and information, causing Ms R avoidable distress and inconvenience over approximately ten months. While the ombudsman acknowledged that the secured loan charge may also have created obstacles, this did not justify Santander's failure to treat Ms R fairly or consider her application outside policy given her circumstances.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Santander UK Plc, all decisions | 14,522 | 22% |
| Mortgage administration / arrears handling, all decisions | 13,255 | 19% |
| Mortgage, all decisions | 24,714 | 22% |
Source
Read the original decision on the Financial Ombudsman Service website