FOS decisions / Mortgage Shortfall
Mortgage Shortfall
Financial Ombudsman Service final decisions, reproduced verbatim from the FOS published decisions register.
Decisions
11
Upheld
1
Not upheld
10
Avg redress
£760
Upheld complaints (1)
Not-upheld complaints (10)
Mortgage Agency Services Number Five Limited
DRN-5955514A lender is entitled under mortgage terms to pursue a shortfall debt arising from a property sale in possession, and doing so is not inherently unfair.
Not upheldMar 2026Decision DRN-6251893
A pension provider is not responsible for falls in fund value caused by market conditions beyond their control, absent evidence of mismanagement or administrative error.
Not upheldMar 2026Kensington Mortgage Company Limited
DRN-6132091A lender may pay outstanding service charges and ground rent on behalf of a borrower and add them to the mortgage account when there is documented agreement and court authority for doing so.
Not upheldMar 2026Decision DRN-6149221
The Limitation Act 1980 does not prevent a lender from continuing to pursue a mortgage shortfall debt while payments are being made, as payments restart the limitation period.
Not upheldJust Mortgages Direct Ltd
DRN-6286137A mortgage broker must provide suitable advice based on the client's actual needs and circumstances, and clients are entitled to fair compensation when unsuitable recommendations cause them demonstrable loss.
Not upheldDecision DRN-6128253
A complaint brought by an estate representative on behalf of the deceased cannot be used to claim compensation for the representative's own personal distress and inconvenience.
Not upheldDecision DRN-6267180
A lender is entitled to charge interest on mortgage arrears in accordance with the mortgage terms and conditions, and is not obligated to provide account statements in alternative formats beyond those required by the FCA.
Not upheldYorkshire Building Society
DRN-5947942A financial business is liable for compensation for misleading information only to the extent it caused reasonably foreseeable loss, and compensation awards should be fair to both parties rather than punitive.
Not upheldNational Westminster Bank PLC
DRN-6135302A lender is contractually entitled to apply an early repayment charge as agreed in the mortgage terms, even if doing so creates a shortfall, and is not required to waive it on grounds of proportionality or loss mitigation.
Not upheldBank of Scotland plc trading as Halifax
DRN-6166135A borrower remains jointly and severally liable for a mortgage shortfall debt regardless of whether they occupied or controlled the property after separation from a co-borrower.
Not upheld