The Financial Ombudsman Service (FoS) reported a 27% increase in complaints against both residential first charge mortgages and buy-to-let (BTL) mortgages between July and September this year.
There were 1,170 complaints about residential first charge mortgages during the period, compared with a total of 186 complaints about BTL mortgages.
Although complaints increased in some areas, the total number of cases fell from 73,700 in July to September 2024 to 46,300 in the same period this year.
The number is also down from the 68,000 reported in the first three months of the fiscal year between April and June.
The latest figures show that professional representatives accounted for 4,300 complaints in the second quarter of this financial year, with a higher proportion coming directly from consumers.
During the same period in 2024/25, around 37,100 cases were brought by professional representatives.
The Motor Finance Commission and lending deemed irresponsible and unaffordable are two areas where professional representative complaints have previously accounted for a large proportion of cases.
In the second quarter of this financial year, the FoS received 4,500 complaints about irresponsible and unaffordable loans, compared with 24,900 complaints between July and September 2024.
Commenting on the latest figures, James Dipple-Johnstone, interim chief ombudsman for the FoS, said: “We are introducing an ambitious series of improvements to boost confidence in financial services now and into the future.”
“After a period of exceptional demand, our caseloads are now starting to decrease as we take steps to ensure that complaints we receive are better substantiated and ready for investigation.”
“The changes we have introduced and the changes we plan to make in the future will allow us to focus on getting back to our core purpose of serving our clients as a fast, informal and impartial alternative to the courts for resolving disputes.”
