Not upheld: Service failures generally complaint against Santander UK Plc

Decision detail

Summary

Miss H complained that Santander treated her unfairly during her financial difficulties, failing to offer adequate support such as term extensions or lower interest rates, and proceeding with eviction action. Miss H had experienced significant hardship including mental health crises, income decline, and accumulated arrears of approximately £37,000 since December 2020. The ombudsman found that while Santander attempted to work with Miss H through multiple contact attempts and payment arrangements, the mortgage was fundamentally unaffordable to her given her very limited income, with even market interest rates of 4.44% resulting in unaffordable monthly payments of approximately £980. The ombudsman concluded that Santander could not reasonably offer a term extension without ensuring affordability, and no forbearance options could realistically improve Miss H's situation given the absence of any clear plan for repayment or income improvement. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman acknowledged Miss H's difficult circumstances but found that Santander had attempted to work with her and offer support. The fundamental issue was that the mortgage was unaffordable to Miss H regardless of interest rate offered, as even market rates of 4.44% would result in unaffordable payments of approximately £980 monthly. The ombudsman concluded that Santander could not reasonably offer a term extension without ensuring affordability, and no forbearance options could realistically make the mortgage affordable given Miss H's very limited affordability and lack of any clear plan for improvement. The ombudsman found Santander's resumption of litigation action in 2025 was not unreasonable given the circumstances.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website