The FOS revealed non-endowment related mortgage complaints rose to 3,942 new cases, up from the 2004-2005 report, which reported 3,001 complaints. The report revealed non-endowment mortgage complaints accounted for 31 per cent of all complaints. However, of these 3,942 complaints less than 800 involved complaints against mortgage intermediaries.
Endowment complaints continued to dominate the organisation’s timetable, accounting for 61 per cent of new cases, which worked out at 69,149 cases. Despite accounting for over half of all new case complaints, this figure represented a drop from the 2004-2005 findings of 69,737 complaints.
In its annual review, the FOS admitted the rise in non-endowment related mortgage complaints could be as a result of increased product complexity and choice, with the FOS reporting a rise in the number of disputes between consumers and lenders relating specifically to the terms and conditions of mortgage products. It also commented on a ‘flurry of complaints’ regarding exit fees, as well as a number of complaints regarding the initial fees for arranging or securing mortgage products.
Rob Griffiths, associate director at AMI, said: “Under statutory regulation we would expect the number of complaints to increase. Under MCAS, part of MCCB regulation, there were about 100 complaints a year. The number of complaints against brokers has increased, but the numbers show the intermediary sector is still low risk.”
He added: “We feel mortgage intermediaries should ensure complaints handling systems and controls are in place to ensure the number of complaints continues to be a low number.”
Griffiths went on to confirm that the trade body was currently formulating its response to the FOS funding review.
