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Complaints about mortgage firms up 76%

The number of complaints about mortgage businesses, including brokers, rose 76 per cent in the second half of 2011 to 52,746, up from 29,917 in the first half of the year.

The FSA’s latest complaints data, published today, shows 47 per cent of complaints, or 25,687, were upheld in favour of the consumer, compared to 45 per cent in the previous half of the year.

In total, mortgage firms paid out £44.4m in redress in the second half of the year, compared with £22.2m in the first half of the year.

Mortgages businesses are made up of home finance administrators, brokers and lenders.

The most common cause for complaint was related to the advising, selling and arranging of products,

Meanwhile, complaints about home finance products, which include equity release, impaired credit mortgages, and other regulated and non-regulated mortgages, stayed static at 69,088, compared to 67,537 in the first half of the year.

Santander UK received the most complaints relating to home finance products with 10,874, closely followed by Bank of Scotland with 10,034.

Other lenders with a large number of complaints include Barclays Bank, HSBC, Northern Rock (Asset Management), NatWest and Nationwide Building Society.

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. I wonder how much of that was to do with MPPI which page 14 of the Good Guidance Notes published by the Mortgage Code Compliance Board said should be offered and a disclaimer obtained from the borrower if they declined it.

  2. Don’t do many mortgages now, even less since ‘whole of market’ research shows that in majority of cases clients are better going direct…

    But I suspect in their somewhere lies the answer to why complaints have risen substantially!!!

  3. The reason is perfectly simple. This area is being touted as the ‘next big thing’ in CMC circles after the PPI money tree eventually withers and dies.

  4. They have created a monster where no one takes responsibility for their own decisions any more. It’s always amazing how many complainants can remember what they weren’t told but can never remember what they were. The way people can complain indiscriminately without any come back on them just encourages them to do so. It’s time this ability to earn a small fortune from encouraging people to complain is properly looked at.

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