Mortgage Complaints

The mortgage lending market is very complicated and it is possible that people can suffer at the hands of financial advisors and others who may offer unsound advice. Remember, when choosing a mortgage - always ask questions, and never rush into anything. Always take advice if you are uncertain.

What Protection Do You Have?

Advice on mortgages is currently only regulated on a voluntary basis by the industry, under a code of mortgage practice sponsored by the Council of Mortgage Lenders. Although many of the major lenders are signed up to the code there are still some who are not, so check first before taking advice.

However, anyone selling mortgage linked investments, such as endowments or pensions, must be qualified and registered, and must be able to demonstrate clearly that the policies they recommend are suitable. Sales of investments are regulated by the Financial Services Authority, and all registered individuals and firms are inspected, and can be fined or expelled from the industry if guilty of wrongly selling products.

Endowment Complaints

The most common complaint is to do with endowments. In the past, many people were advised to buy products that they later came to regret.

Complaints about endowments, pensions and other investments are handled by the Financial Services Authority and dealt with by the Financial Ombudsman Service.

Mortgage Complaints

If you feel that you need to make a complaint about the advice you have been given, you should following these steps:

Step 1

Complain to the company that sold you the product, going through its internal complaints procedure.

Step 2

If you are unhappy with the firm's decision, approach the relevant complaints body:

• For complaints about lenders generally, or the mortgage advisors employed directly by them, contact the Financial Ombudsman Service.
• For mortgage lenders that are signed up to the mortgage code, but are not building societies or banks, contact the Chartered Institute of Arbitrators. You may also contact them if you have a complaint about a mortgage broker.