The customer doesn't realise the quote given by the lender is wrong


We look at Lily’s complaint about her mortgage being underfunded after her new repayments were incorrectly calculated.

What happened

Lily asked to reduce her mortgage term by two years. When this was done, she began to pay the new, higher monthly repayments. But a year later, the lender wrote to say she hadn’t been paying enough, and she’d have to repay the outstanding amount over the next six months.

What we said

We could see Lily had received a quote for the increased repayments and couldn’t reasonably have known it was wrong. She’d been paying the amount quoted, so we said the lender had made the mistake and should meet the underfunding.