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Complaints·Data

Second-charge complaints upheld more often than any other mortgage

Only 124 new complaints reached the ombudsman in the quarter, so the rate can swing sharply from one quarter to the next.

By Lending IntelligenceUpdated 1 min read
The newsHighest uphold rate of the mortgage products the ombudsman lists for the first quarter of 2026/27.
Why it mattersAn upheld case is one where the firm couldn't show it treated the customer fairly. The file is the defence.
What's nextThe FOS publishes complaints data every quarter. We will track second charge, bridging and lifetime mortgages each time.

The figures

The Financial Ombudsman Service upheld 35% of the second-charge mortgage complaints it resolved between April and June 2026, the first quarter of its 2026/27 year. For first-charge mortgages the figure was 26%. The data was published on 22 July 2026.1

Buy-to-let mortgages were upheld in 21% of cases and lifetime mortgages in 13%. Bridging loans drew 25 new complaints; the ombudsman publishes no rate where it resolved fewer than 30.1

Across every product it covers, the uphold rate was 26%. Excluding motor finance commission complaints, which the ombudsman has been unable to progress fully while the legal position is clarified, it was 30%.1

Reading it carefully

An uphold rate is the share of resolved cases decided in the customer's favour. It doesn't measure how often things go wrong: most complaints are settled by the firm and never reach the ombudsman.1

The base is small. Lenders wrote 10,577 new second-charge agreements in April to June 2026, on the FLA's monthly figures, against 124 new complaints to the ombudsman. A handful of cases can move the rate.2

What it means for introducers

The FCA's review of the second-charge market in March listed inadequate record keeping among its findings, alongside affordability checks that overlooked living costs and unclear fees.3

For introducers the practical defence is the one that applies to any referral: explain that the loan is secured on the home, be open about fees, and keep a short note of why the introduction was appropriate.

Sources

  1. 1Financial Ombudsman Service, “Quarterly complaints data: Q1 2026/27 (22 July 2026)”New complaints and uphold rates by product for April to June 2026, and the overall uphold rates.
  2. 2Finance & Leasing Association, via the Secured Loan Index, “Second-charge new agreements, April to June 2026”Monthly agreements: 3,504 in April, 3,245 in May and 3,828 in June 2026.
  3. 3FCA, “Second charge mortgage firms told to raise standards for consumers (12 March 2026)”David Geale's comments, the market share, the four headline issues and the FCA's next steps.

Information only, not advice. Spotted an error? See our corrections policy.

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