Increase in mortgage complaints registered

There has been an increase in the number of complaints that are being made to the Financial Ombudsman Service recently by mortgage customers who have found that they have been left owing money on their mortgages due to mistakes made by their lenders. The FOS has seen an increase in calls about mortgage underfunding from consumers who are horrified to find that they owe more than they thought they did.

Last month the errors that had been made by some banks and lender emerged after it was revealed that around eighteen thousand mortgage customers at the Yorkshire and Clydesdale Bank had underpaid on their mortgages as a result of errors by the financial institution. His has occurred as a result of borrowers being quoted an interest only figure instead of a repayment figure in many cases, which has resulted in the consumer ultimately underpaying on the mortgage.

There are a number of reasons why lenders may have mistakenly given homeowners the wrong figure when it comes to repayments, such as quoting them on the wrong mortgage repayment terms, which means that they end up paying less than they should be in order for their mortgage to be repaid in time.

The Financial Ombudsman Service is now looking at the various complaints that are coming in from consumers who claim that they have ended up owing the banks money due to errors by the financial institutions themselves. The FOS has said that it will base its decision on factors such as whether the consumers should have realised that they were no paying enough or whether the bank was entirely at fault, which could see some homeowners having the balance of the debt written off.