Residential Mortgage

A lender should reasonably anticipate that customers may be upset to receive reminder letters about unpaid balances shortly after confirming mortgage redemption, even if sent by automated systems.

A lender must provide clear, complete and accurate information when a customer requests changes to mortgage payment arrangements, and fair redress involves restoring the customer to the position they would have been in had correct informati

A lender must provide clear information about mortgage terms and must apply agreed offset arrangements correctly, particularly regarding how interest rate reductions affect payment calculations.

A lender must conduct a full underwriting assessment before definitively stating maximum mortgage terms, rather than applying blanket policy limits without considering individual circumstances.

A lender must make a reasonable decision on whether to proceed with a mortgage application based on available information within a reasonable timeframe, rather than leaving the applicant in limbo.

A lender must apply consent to lease markers to mortgage accounts when agreed, and failure to do so may constitute a breach of the mortgage agreement terms.

A lender is liable for the difference in interest rates between loans during a delay period, not for the total interest payments made, as interest would have been charged regardless of which loan was in effect.

A lender must clearly communicate changes to mortgage payments and the precise mechanism by which payment adjustments are implemented.

A lender must carry out a detailed affordability assessment that includes all committed and other expenditure, including costs of properties still owned and mortgaged at the time of the new mortgage completion.

A lender must communicate with customers in a way that is clear, fair and not misleading, and must take responsibility when a customer reasonably believes they have successfully applied for a new interest rate.

A financial institution is liable for direct costs caused by its errors but not for speculative losses or costs that would have been incurred regardless.

A lender must not change mortgage payment calculations in a way that causes underfunding and leaves an outstanding balance at the end of the term without proper notification to the borrower.

A mortgage with a flexible credit reserve facility must operate in accordance with its original terms and conditions, including automatic recalculation of contractual monthly payments following payments into or withdrawals from the reserve.

A lender should satisfy itself that affordability criteria are met before instructing a valuation, to avoid unnecessary expense to the borrower.

A lender must assess mortgage affordability by considering the borrower's ability to repay if circumstances change, including the impact of an expiring first mortgage and by exploring alternative income sources such as sickness benefits.

A lender's solicitors must act promptly and proactively to resolve title registration issues that prevent property sales and result in additional borrowing costs.

A lender must treat a borrower fairly when the mortgage term ends and the borrower cannot immediately repay, including giving adequate warning before instructing solicitors for legal action.

A lender must provide a consumer with a signed warrant for possession during repossession proceedings.

A lender may lawfully pursue debt recovery and repossession proceedings when a mortgage term has ended and the borrower fails to repay the outstanding balance, provided the lender engages fairly with the borrower during the process.

A lender cannot unilaterally impose mortgage product changes with early repayment charges or extend terms without consent of all borrowers, as this could cause financial detriment to non-consenting parties.

A lender must provide clear, accurate communication about payment arrangements and cannot be held responsible for arrears resulting from a consumer's choice not to complete a required direct debit mandate after initial errors are rectified.

A lender must not report a payment as missed or in arrears on a consumer's credit file where the delay resulted from the lender's misleading information and confusion caused during account servicing.

Financial compensation for distress and inconvenience caused by a business's errors should be proportionate to the impact and guided by published FOS awards guidance, not designed to punish the business.

A lender is entitled to make a commercial decision to accept a property warranty falling outside its lending criteria by exception, provided it acts fairly in relation to disclosure and valuation processes.

A lender's policy restricting access to beneficial interest rate products for borrowers with consent to let must not breach FCA principles or the Consumer Duty by creating an unfair barrier to refinancing.

A lender must fully and fairly consider a consumer's request to switch to a new interest rate product, and cannot arbitrarily refuse such a request without proper consideration.

Under the Consumer Duty, a lender must provide clear, timely information about key charges such as early repayment charges and verify customer understanding when interacting one-to-one, particularly where the information prompts a significa

The FOS can only consider complaints about a firm where the complainant has a specified relationship with that firm, and an administrative error in transferring a mortgage security does not create a legal relationship between the parties.

A lender cannot continue charging interest on a secured mortgage debt after the secured property has been sold and the debt becomes unsecured.

A lender's solicitor must not amend a signed mortgage deed without first contacting the borrower or their solicitor, as this deprives the borrower of the opportunity to make informed decisions about ancillary costs.

A lender must be put into the position they ought to have been in but for the business's error, with compensation reflecting the loss of opportunity caused by the error rather than guaranteeing a successful outcome.

Offset mortgages calculate monthly interest by dividing annual interest by 12 and offset benefits based on actual daily earnings, which may not align perfectly due to varying month lengths, legitimately resulting in occasional payment deman

A lender must not mislead a consumer about the likelihood of mortgage approval, and must make clear when terms are approximate and not guaranteed.

A lender is entitled to set its own lending criteria and decline mortgage applications, but must communicate decisions fairly and timeously without providing misleading information.

A lender must apply its lending policies fairly and consistently, and cannot impose stricter requirements than its own published policy allows.

A lender must act fairly in enforcing mortgage obligations and must properly account for payments, endowment policy proceeds, and the terms under which a mortgage is held.

A lender must treat customers fairly when considering term extension applications, but is not obliged to grant extensions when the borrower has means to repay the debt through alternative means.

A lender is entitled to rely on the application form submitted and the stated repayment strategy without conducting detailed verification, provided the strategy is plausible and the borrower is aware of the mortgage type.

A lender is not responsible for loss of documents by the DWP when the lender has fulfilled its obligation to send completed forms to the DWP.

A mortgage lender is entitled to contact a borrower who remains party to the mortgage account, and service failures must be assessed against what is reasonable in the circumstances.

A lender's interest rate is fair if it complies with the contractual terms agreed by the borrower and is applied consistently with changes in the Standard Variable Rate.

The ombudsman cannot reconsider complaints that have already been decided unless material new evidence is presented, and the ombudsman may dismiss complaints where no promise of a specific product was demonstrably made.

A lender is entitled to rely on the professional opinion of a suitably qualified valuer it has instructed and is not responsible for errors made by that valuer.

A lender is entitled to apply its commercial lending criteria to mortgage applications, including porting requests, provided the criteria are applied fairly and consistently.

A lender is entitled to process changes to a jointly-held mortgage on the instruction of one party where it has no actual knowledge of a marital dispute and the terms permit such changes.

Early repayment charges on mortgages are enforceable contractual terms where clearly disclosed and the borrower redeems during a fixed rate period, even if porting is declined.

A lender is not liable for delays in providing redemption statements where the underlying cause of delay in mortgage repayment was the borrower's failure to receive endowment policy funds on time, provided the lender makes a fair offer to p

A lender may withdraw a mortgage offer if documentation raises fraud or compliance concerns, even if the error was clerical, provided the lender treats the consumer fairly and proportionately.

A lender may reasonably allow a rate change on a jointly-held mortgage with only one party's consent where the change is beneficial and does not cause financial detriment to the non-consenting party.

A lender must act promptly and communicate effectively when processing mortgage applications, but delays caused by third parties or client-initiated changes do not necessarily constitute service failures warranting additional compensation b

A lender is entitled to rely on self-certified income declarations and need not verify income further at the time of lending, provided affordability calculations show adequate disposable income.

A mortgage lender's valuation is for lending purposes only and the borrower bears responsibility for obtaining their own survey if they wish independent assessment of the property's condition.

Early repayment charges can be set as a pre-estimate of loss on a portfolio basis rather than individual calculation, provided terms are clear and transparent.

A mortgage lender is entitled to pay service charge arrears on a borrower's behalf to protect its security over the property, and add the cost as an interest-bearing charge to the mortgage account.

A lender cannot accept sole consent to voluntarily surrender a jointly-held mortgage without agreement from both parties, and a court order between borrowers does not alter the lender's contractual obligations or override the need for joint

Consumer Duty fair-value assessment obligations do not apply to closed products repaid before the delayed implementation date of 31 July 2024, and complaints about events more than six years prior must be assessed under Section 140A of the

An early repayment charge (ERC) refund is a discretionary concession, not a contractual term, and a lender is not obliged to lend again even if it has lent before or issued a decision-in-principle.

A lender must provide clear guidance on payment methods when mortgage interest support arrangements begin, but borrowers remain responsible for making their payments.

A mortgage lender is not bound by a divorce court order and must apply its own affordability criteria before agreeing to release a co-borrower from a mortgage.