Mortgage complaints more than double in one year
Share
The Financial Services Authority has today published its complaint figures for the second half of 2010, showing complaints about mortgage businesses have more than doubled in one year.
Complaints about mortgage businesses were up to 29,274 in the second half of the year, compared to 22,688 in the first half of 2010 and considerably higher than the second half of 2009 at 13,232.
Some 24,899 complaints about mortgage firms were closed, up from 22,315 in the first half of 2010.
Out if these closed complaints some 48%, 11,907, were upheld in favour of the consumer.
In total mortgage businesses paid out £15m in redress to customers, up from £5m in the second half of 2009.
The FSA received 64, 221 complaints relating to home finance products.
The highest proportion came from general admin and customer service complaints at 27,392. This was followed by 18,377 complaints relating to terms and dispute sums/charges.
Bank of Scotland received the highest amount of home finance complaints with 9,631, 47% of which were upheld.
Followed by Barclays which received 8,580 complaints, 61% of which were upheld.
Santander received the third largest number of complaints with 8,451 and 41% upheld.
Intermediary lender Kensington received 740, with 51% upheld and GE Money Home Lending 756, with only 15% upheld.
Ex-lenders also featured highly on the FSA complaints data with Mortgage Express receiving 1,314 complaints, 40% of which were upheld.
Preferred Mortgages received 842, 39% of which were upheld and Southern Pacific Mortgages received 886, 34% of which were upheld.
Overall, home finance complaints were up from 57,963 in the first half of 2001.
The firm specific complaints data is data that firms report to the FSA about their complaints, mainly from retail customers. The data published includes firms that report 500 or more complaints in a six-monthly period.
If you enjoyed this article, sign up here to receive daily email updates from Mortgage Strategy and Follow @mortgagestrat
Readers' comments (6)
Chris Hulme - Chairman UKSA NRSAG | 30 Mar 2011 10:47 am
Isnt it interesting that the complaint levels are with lenders considered as mainstream "good banks" where as those deemed the "bad banks" in recent years dont appear to have such high levels of complaints.....
Unsuitable or offensive? Report this comment
Brian Brotherton | 30 Mar 2011 10:52 am
Interesting Reading and once again the banks lead the field.
However, equally interesting that the other lenders named were mainly adverse credit lenders and mortgage express a 100% lender.
Unsuitable or offensive? Report this comment
David Sheppard, Perception Finance | 30 Mar 2011 11:00 am
Chris Hulme - this would be entirely expected given the volumes of business that these firms have. Complaint data will always be proportional to the number of consumers.
The real statistic that matters is the percentage of complaints that are upheld as this is a true indication of which companies are trying to do things right. The total number of complaints really has no basis for scrutiny as those that are not upheld could be seen to be reckless.
Unsuitable or offensive? Report this comment
ARI Network | 30 Mar 2011 11:09 am
So can you tell us how many complaints about mortgages were about mortgage brokers/advisers?
Unsuitable or offensive? Report this comment
Anonymous | 30 Mar 2011 12:03 pm
In a claims culture society what do you expect!!!
Unsuitable or offensive? Report this comment
chris wild | 31 Mar 2011 10:49 am
Bradford & Bingley AKA Mortgage Express have been ripping off their captive borrowers with exorbitant SVR's dressed up as 'managed" SVR's. Small wonder then they have apparently gone 'into the black" - but at the colossal expense of those borrowers they have and continue to rip off each month since the drop in BoEBR to .5%. I and others are currently being ripped off to the tune of 4.84%. it should be 2.25%!!!!!!
Unsuitable or offensive? Report this comment