The number of mortgage complaints received by the Financial Ombudsman Service has fallen 2 per cent.
The FOS’s annual review, published today, shows there were 12,297 complaints about mortgages in the year to 31 March 2015, down from 12,606 in the previous year. The number of complaints about mortgages fell for the first time in at least four years.
However, the FOS said complaints about mortgages were at a “high level” and said the number about interest-only mortgages continued to increase.
The report says: “Most came from people worried that they wouldn’t be able to repay their mortgage – and questioning the advice they were given.
“On the other hand, we heard from fewer people at the end of their interest-only mortgage arrangement who couldn’t repay the capital. We hope this is because lenders are working constructively with customers who find themselves in this position.”
The FOS also said it was “disappointed” it continued to receive complaints about administrative errors “that could have been put right without the unnecessary inconvenience of being escalated to us”.
The FOS received a total of 329,509 complaints in 2014/15, down by 36 per cent from 512,167 in 2013/14. Of these, just 2 per cent related to brokers.
The number of complaints the FOS received about payday loans rocketed 46 per cent from 794 to 1,157 over the period.
The FOS says most complaints were about the loans being unaffordable.
It added: “And in many cases, we found that the lender hadn’t done enough to ensure that the loan in question was appropriate – given that particular customer’s financial position. In some cases, the lender’s credit-scoring process was clearly inadequate.”
It also said payday lenders were continuing to use “continuous payment authorities”, despite limits put in place by the FCA about how many times lenders can attempt to take payments from a borrower’s account.