Mortgages.scot

Mortgage Complaints made to the Financial Ombudsman Service are produced on a regular basis. For the most recent year figures have been released and it shows an increase.

The Ombudsman report a total of 454,259 new enquiries received with 278,033 new complaints recorded, covering all sectors, not just mortgages. Some granular details below.

Mortgage complaints are included in the Banking & Credit category. Much of the increase is attributed to COVID. Difficulties both for clients who have experienced difficulties as a result of COVID and the industries struggle to ensure service levels are maintained with so many staff working from home.

A specific note mentioned that many of the new complaints still related to historic lending. PPI which is a lingering product and cause of complaints remains the highest single reason for complaints.

The FoS also note that many complaints would have been avoided with better communication.

Mortgage complaints specifically

Drilling down into the detail of mortgage complaints it is clear the numbers are increasing, again, largely due to the difficulties faced by everyone due to COVID. The numbers below.

It is also worth noting that with the exception of Pensions, Mortgages are the least complained about product. General banking products such as current accounts, cards, savings and so on generated 116,000 complaints. Insurance complaints were 70,000.

I am not suggesting it is good enough to be that low, more can be done.

On a positive note, the majority of complaints were resolved by the lender rather than the Ombudsman.

Of all mortgage-related complaints that reached a stage where the Ombudsman was asked to make a decision on a complaint, 21% were upheld.

Summary

Another year, but a very difficult year for everyone. Most complaints are valid, I am always going to be balanced it is important to recognise the difficulties lenders have experienced.

Could you imagine if COVID had hit 20 years ago when Working from Home was not an option? Being able to access client information remotely would not be an option and we would have been in a significantly different position.

Poor service is poor service, it affects consumers in many different ways can cause financial stress and loss so it is important to stay focussed on what consumers are complaining about and what we as an industry can do to improve.