Dominica complained after she discovered she'd been sold an interest-only mortgage rather than a repayment mortgage.
What happened
Dominica said she thought she’d taken out a repayment mortgage but recently discovered it was interest only. She didn’t have a repayment plan in place and complained that the mortgage wasn’t right for her needs.
What we said
We reviewed the case. We noted that the income and spending assessment carried out by the lender who’d advised Dominica showed that she could have afforded a repayment mortgage. But the report didn’t include any options for a repayment plan.
The lender couldn't explain why it had recommended an interest-only mortgage. Dominica had previously had a repayment mortgage, and this type of mortgage would clearly have been affordable for her.
We upheld Dominica’s complaint and told the lender to put her in the financial position she’d be in had they sold her a repayment mortgage in the first place.