Recent data from the Financial Ombudsman Service reveals a significant decrease in mortgage complaints, with residential first charge mortgage issues dropping by 11% year-on-year. This decline is noteworthy for borrowers and landlords, reflecting an improving situation in the mortgage market.
What Are the Latest Complaint Figures?
According to the Financial Ombudsman Service (FOS), the total number of new mortgage complaints reached 6,407 in the 2025/26 financial year, marking a 7% decrease from 6,895 the previous year. Complaints specifically related to residential first charge mortgages accounted for 4,553 of these, down from the previous year’s figures. Meanwhile, buy-to-let complaints remained relatively stable, with 760 new cases reported compared to 795 the prior year.
How Many Complaints Were Upheld?
The percentage of complaints upheld in favour of borrowers has slightly decreased, from 32% in 2024/25 to 27% in the latest financial year. This indicates that while fewer complaints are being lodged, the success rate for those that are remains lower. This could signal a shift in how complaints are being resolved, which may affect borrowers’ confidence in the dispute process.
What Does This Mean for Landlords and Borrowers?
The decline in complaints suggests a more positive environment for borrowers and landlords, potentially indicating better service from lenders. With fewer complaints being made, it may reflect improvements in communication and issue resolution processes within the mortgage sector. However, the slight decrease in upheld complaints may warrant attention from borrowers who may feel less supported in disputes.
What Are the Trends in the Mortgage Market?
The FOS reported a total of 214,600 complaints across all sectors in 2025/26, a significant drop from 305,700 in 2024/25. This decrease is largely attributed to a reduction in complaints related to motor finance commission and credit cards. Additionally, the number of withdrawn or abandoned complaints has also fallen, from 35% to 18%, indicating a more decisive approach from consumers in pursuing their cases.
Frequently Asked Questions
What should borrowers do if they have a complaint?
Borrowers should first raise their concerns directly with their lender. If unresolved, they can escalate the issue to the Financial Ombudsman Service for further assistance.
How can I stay informed about mortgage market changes?
Monitoring resources like the Financial Ombudsman Service reports and industry news can help you stay updated on trends and changes in the mortgage market.