Repayment Mortgage Decision Reference 2022-0127

Case OutcomeRejected
Subject MatterRepayment Mortgage
Reference2022-0127
Date11 April 2022
Finantial SectorBanking
Conducts Complained OfDelayed or inadequate communication
Decision Ref:
2022-0127
Sector:
Banking
Product / Service:
Repayment Mortgage
Conduct(s) complained of:
Delayed or inadequate communication
Outcome:
Rejected
LEGALLY BINDING DECISION OF THE FINANCIAL SERVICES AND PENSIONS OMBUDSMAN
The Complainants previously held four buy to let mortgage loans with a bank (the
Provider”) prior to them being sold to a third-party company (“Company A”).
The Complainants’ Case
The complaint concerns four buy to let mortgage accounts. The Complainants submit that
they signed a form of acceptance for each of the loan offers with the Provider in 2007. These
loans were an interest only facility, for three years. The Complainants sta te that "the loan
was agreed, with the absolute understanding as it needed to be, that the interest only period
would be rolled over at each 3 year review for as long it took within the agreed term, but
that the loan would be paid off well before the 25 years."
The Complainants state that in 2010 the Provider contacted them regarding their loans. They
submit that the Provider gave them two options; one to convert to principal and interest
and the other to remain on interest only but to re -negotiate the terms and conditions of
their loans. The Complainants maintain that there was no action to take "but to prepare our
presentation regarding the agreement made with [Provider] - that being our loans were to
remain on interest only for the full term."
The Complainants submit that they did not endorse this as it would have gone against the
agreement with the Provider which would have changed their loans to a variable rate

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