How to Complain About a Mortgage Broker or Lender to the Financial Ombudsman

When the Financial Ombudsman Is the Right Route

If you have a complaint about a mortgage lender or mortgage broker, the relevant body is the Financial Ombudsman Service (FOS) rather than the property ombudsmen. This is because mortgage lending and mortgage advice are regulated by the Financial Conduct Authority (FCA), not the property-specific regulators.

You can complain to FOS about:

• A mortgage broker who gave you unsuitable advice (e.g. recommending a product that was too expensive or inappropriate for your circumstances)
• A lender who mis-sold a mortgage, applied charges incorrectly, or administered your account poorly
• A lender who wrongly refused a mortgage or withdrew a mortgage offer
• Payment difficulties that the lender handled unfairly
• Errors in processing your mortgage application

Step 1: Complain to the Firm First

All FCA-regulated firms must handle complaints through a formal internal procedure. Write to the firm's complaints team stating:

• What happened and when
• How it affected you financially or otherwise
• What resolution you are seeking

The firm has 8 weeks to give you a final response. If 8 weeks pass without a satisfactory resolution, you can take the complaint to FOS.

Step 2: Check FOS Eligibility

FOS can consider your complaint if:

• The firm is FCA-regulated (all mortgage lenders and authorised brokers are)
• You are an individual consumer (not a limited company)
• The complaint relates to events no more than 6 years ago, OR you became aware of the problem no more than 3 years ago
• You have completed the firm's 8-week internal process

Step 3: Submit to FOS

Submit your complaint at financial-ombudsman.org.uk. The online form walks you through the process. You will need:

• The name of the firm and your account or reference number
• A description of what went wrong
• Copies of all correspondence with the firm
• The firm's final response letter
• Any supporting documents (mortgage illustrations, offers, statements, letters)

You can attach up to 20MB of documents in the online form. If you have more, FOS can arrange secure upload.

Step 4: The FOS Process

Adjudicator Stage

FOS assigns an adjudicator who reviews both sides' evidence. The adjudicator can contact you or the firm for further information. This stage typically takes 3–6 months.

The adjudicator will issue a view — essentially a recommendation. If both parties accept it, the case is resolved.

Ombudsman Stage

If either party rejects the adjudicator's view, the case goes to a qualified Financial Ombudsman for a final decision. This can add a further 3–6 months.

The Ombudsman's final decision is binding on the firm if you accept it. You retain the right to go to court if you reject it.

What FOS Can Award

FOS can order the firm to:

• Put you back in the position you would have been in if the problem had not occurred — this includes refunding overpaid interest or charges
• Pay compensation for financial loss
• Pay distress and inconvenience compensation — typically £100–£500 for moderate cases; higher for severe or prolonged problems
• Pay up to £430,000 in total (the FOS limit for complaints about events from 1 April 2019 onwards)

This is a significantly higher cap than the property ombudsman schemes.

Common Mortgage Complaints That Succeed at FOS

• Mortgage mis-selling — being recommended a product without proper explanation of risks (e.g. interest-only mortgages without a repayment vehicle)
• Errors in interest calculations on tracker or variable rate mortgages
• Failure to offer a payment holiday during financial difficulty when the firm should have done so
• Incorrect credit reporting that affected your ability to remortgage
• Charges applied for early repayment without proper disclosure at outset

Mortgage Brokers Specifically

If your complaint is about advice you received from a mortgage broker, FOS will assess whether the advice was suitable given your circumstances at the time. Key questions include:

• Did the broker assess your income, outgoings, and needs properly?
• Was the recommended product in your best interest?
• Were all fees disclosed clearly upfront?

Keep all illustrations, fact-find documents, and fee schedules that the broker gave you — these form the core evidence.

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