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Mortgage complaints fall as lenders improve, says FOS

The Financial Ombudsman Service says that lenders are offering more flexibility in their approach to borrowers, which has helped bring about a drop in complaints.

In its annual review, the FOS reveals that mortgage complaints made up 2 per cent of the total 1.5 million enquiries it received over the 2017/18 financial year.

Nearly one in ten (9 per cent) of new banking complaints were about mortgages – 8,917 new complaints, which is a 14 per cent drop compared to last year.

Aside from PPI, mortgages are the fifth most complained about product (sixth if you do include PPI)

Meanwhile, 9 per cent of new investments and pension complaints were about mortgage endowments – 1,078 new complaints, down by 29 per cent from last year.

A spokeswoman for the FOS says: “In this financial year we’ve seen a few trends that might be reasons why not as many people are bringing complaints to us about mortgages.

“We’ve generally seen an improvement in lenders behaviour towards their consumers – being more flexible and accommodating when they become aware someone is struggling to make their payments.

“And with interest rates being so low, consumers might be struggling less when it comes to paying their mortgage.”

However the FOS does raise concerns about the ongoing difficulties facing interest-only borrowers.

The spokeswoman adds: “We’ve highlighted a case in the annual review about an interest only mortgage, as we get a handful of complaints about this every month.

“We’ve said customers and lenders should to work together to find a solution.”

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