Mortgage blog: Revealed: The UK’s most complained-about mortgage lender
If good service and good advice matter to you as much as an excellent mortgage rate then it's vital for you to know about new data from the Financial Conduct Authority. The FCA has published information on which mortgage lenders attract most complaints and which banks and building societies uphold most of these grievances.
Here, we reveal the UK's five worst lenders in terms of mortgage complaints.
Bank of Scotland tops complaints list
According to figures published by the Financial Conduct Authority, Bank of Scotland was the most complained about mortgage provider between July and December last year. The Bank had 15,075 complaints from borrowers during this six-month period - the most complaints for a mortgage provider by roughly 2,750. The data also revealed that the Bank agreed with the complainant in an astonishing 71% of cases.
According to the FCA data, Santander had the second-most complaints at 12,257 and had an uphold rate of 41%, with Nationwide in third at 5,236 complaints. The building society found in the complainant's favour in 64% of cases.
Cheltenham & Gloucester had the worst uphold rate, at 77%, and had 4,676 complaints during the period.
Barclays completed the top five, in terms of mortgage complaint numbers, with 4,503 and found in favour of the customer in 53% of cases.
Barclays: The most complained-about financial services company in the UK
The FCA data revealed that Barclays was the overall most complained-about financial services firm between July and December 2013, with 309,494 complaints over the period and an uphold rate of 66%.
Lloyds Bank received the second-highest number of complaints at 256,656, with an uphold rate of 80% while MBNA received the third-highest number of complaints at 213,311. Bank of Scotland was the fourth most complained-about firm with 181,353 complaints, followed by NatWest with 175,731.
In total, there were 2.5m complaints against financial services firms between July and December 2013. Payment protection insurance was the most complained-about product, accounting for 1.4m complaints.
Keith Osborne, editor of Whathouse.co.uk, says: "If you're looking for a mortgage then it's easy to chase the very best rate without considering the overall service standards of a lender. These figures name and shame the companies that most people complain about. Considering its relatively modest size in relation to its main rivals, Bank of Scotland's complaint data is pretty damning."
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