The Co-operative Bank has had to pay out compensation to a borrower after turning down an extension to his mortgage because he was too old.
Peter Day was looking to extend his term by 5 years, at the time he was 59 and coming to the end of his mortgage but he wanted to extend it in order to pay for his daughter’s wedding. However, despite having three final salary pensions ready to cover him in retirement, the mortgage extension was turned down by the Co-operative Bank.
The lender has now been ordered to pay Peter £2,000 in compensation, having fallen foul of the Equality Act.
Mr Day told the Daily Mail that he had been appalled by the decision to reject his mortgage extension, adding: “It was clearly age discrimination as paying the money back and my current financial position were clearly no problem.”
The Co-op have stated that they have since changed their policy and extended the maximum age for mortgage repayment from 68 to 75
Being treated fairly – Bright – Mortgage Broker St Neots
In its judgement, the Ombudsman said that it felt the Co-op had not treated Mr Day fairly.
If you believe that your mortgage lender hasn’t been treating you fairly, make sure that you do something about it!
The first step is to complain directly to them, they will have their own procedure for dealing with complaints. Be sure to all correspondence in writing, you might need to refer to it again later on in the procedure.
If eight weeks have passed and they have not responded to your complaint, or not addressed it to your satisfaction, then you can do what Peter Day did and complain to the Financial Ombudsman Service (FOS). The FOS is a free service set up to adjudicate such complaints. If it believes that you have been mistreated, it has the authority to order the lender to pay you compensation.
In Mr Day’s case, the Co-op were ordered to pay £500 in compensation, as well as the £1,389 it cost Mr Day to move his mortgage to another lender.
Finally, remember that you don’t need to pay a claims management firm to handle your case!
Here at Bright, we have a friendly team of mortgage advisors that can help you find the mortgage that best suits you!
Your home may be repossessed if you do not keep up repayments on your mortgage.