Repayment Mortgage Decision Reference 2022-0127

• Case Outcome: Rejected
• Reference: 2022-0127
• Date: 11 April 2022
• Year: 2022
• Subject Matter: Repayment Mortgage
• Finantial Sector: Banking
• Conducts Complained Of: Delayed 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