'I didn't realise my mortgage was interest-only'


Dominica raised a complaint after she realised 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.

The income and expenditure assessment carried out by the lender – who’d advised Dominica – showed that she could have afforded a repayment mortgage. The fact-find didn’t include any options for a repayment plan. And the lender hadn’t, and couldn’t, explain why they’d recommended an interest-only mortgage.

Dominica had previously had a repayment mortgage, and this type of mortgage would have been clearly affordable for her.

What we said

We 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.