Mis-sold Mortgage Claims > Mortgage News
Complaints rise against specialist lenders
Wed, 13 Apr 2011
Recent reports have shown an increase in the level of complaints made against specialist lenders . Many of these are against those who have already ceased to lend or trade as funding and appetite for risk in specialist lending became an issue.

The Bradford and Bingley lender, Mortgage Express who closed their doors to lending in 2008, specialised in buy to let mortgages, they received over 1300 complaints in the second half of 2010, this was an increase from just over 1100 in the first half of the year. Figures show that over 40 per cent of the complaints were upheld.

Lehman’s subsidiary lenders, including Preferred Mortgages and Southern Pacific Mortgages Ltd (SPML) also showed higher levels of complaints during the same period, 39 per cent of which were upheld for Preferred Mortgages and 34 per cent for SPML. Both lenders operated in the sub-prime lending market.

The figures also confirmed many experts’ forecasts that the level of overall complaints relating to mortgages would rise substantially. There was 15 million pounds of redress paid out to borrowers. Lloyds Banking Group recently announced a deal with the FSA to set aside 500 million pounds for redress to its customers.
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