Repayment Mortgage Decision Reference 2022-0150

• Case Outcome: Upheld
• Reference: 2022-0150
• Date: 28 April 2022
• Year: 2022
• Subject Matter: Repayment Mortgage
• Finantial Sector: Banking
• Conducts Complained Of: Increase in interest rate

Decision Ref:

2022-0150

Sector:

Banking

Product / Service:

Repayment Mortgage

Conduct(s) complained of:

Increase in interest rate

Outcome:

Upheld

LEGALLY BINDING DECISION OF THE FINANCIAL SERVICES AND PENSIONS OMBUDSMAN

This complaint concerns a mortgage account which the Complainant held with the Provider

and the interest rates offered for that mortgage account.

The Complainant’s Case

The Complainant submitted her complaint through a representative. She holds a mortgage

with the Provider which she took out in 2009. The Complainant submits that this mortgage

had a Loan to value (“LTV”) of 58% and initially a variable interest rate but that shortly

thereafter, she opted for the Provider’s “2 Year Fixed (PDH) 3.150%”.

The Complainant states that the next time she had correspondence in relation to interest

rates was on 9 June 2015 the Provider wrote to her, “unprompted”, requesting whether she

wished to select a new interest rate for her loan with a single option for a three-year fixed

rate of 3.8% with an LTV>80% which the Complainant states she accepted, on the basis that

she had no choice.

The Complainant submits that she received a further request to select an interest rate on

17 May 2018 and on this occasion she was offered more than one option. All of these

options were based on an LTV of >81%-90% and the Complainant chose the one-year fixed

rate of 3%.