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Complaints about mortgage firms almost double

The number of complaints about mortgage businesses, including brokers, almost doubled in the second half of 2011, according to the latest complaints data from the Financial Services Authority.

There were 52,746 complaints about mortgage businesses in the second half of 2011, up from 29,917 in the first half of 2011.

Some 47% of complaints – 25,687, were upheld in favour of the consumer, compared to 45% 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.

Overall, the FSA figures show the number of complaints about financial firms increased by 21% to 2,256,172 in the second half of 2011.

The main driver for this increase was a rise in the volume of complaints about general insurance and pure protection which increased by 49% to 1,280,940.

Most notably within this product group were the number of complaints about payment protection insurance which rose by 85% to 977,510.


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  • william kingsley 28th March 2012 at 11:29 am

    Well we all know why complaint numbers have increased don’t we? Claims companies touting for business that’s why. We have had a number of these at our firm and they have no foundation whatsoever. Simply clients ‘trying it on’ spurred on by claims co. reps badgering them.

  • Steve Brockman 28th March 2012 at 11:28 am

    If the FSA can state the total number of complaints received, why can’t the actual complaints for each part of the ‘mortgage businesses’ be stated? i.e. how many complaints were about Brokers, lenders etc. at least we would then know which section is causing the problems would’nt we?