Financial Ombudsman Service predicts rise in mortgage complaints
The Financial Ombudsman Service (FOS) is forecasting that mortgage complaints will rise by 78% over the next 12 months. The increase in complaints is expected to follow tighter mortgage lending criteria and higher repossessions.
The FOS report states: “Some issues relating to sales and contract terms will emerge as customers reach the end of existing deals and find renewal terms unattractive. And there is the potential for a significant volume of disputes around mortgage late payment charges and other similar charges.”
The FOS expects that most mortgage complaints will be about lenders rather than mortgage brokers. However, with property prices plummeting as well as interest rates, many borrowers stuck on high fixed rates at high loan to values, will feel that they have been disadvantaged.
