Complaints about residential first charge mortgages fell by 11% to 4,553 in the last financial year compared to the previous one, data from the Financial Ombudsman Service shows.
The percentage of those complaints upheld in favour of the borrower in 2025/26 was 27%, a slight fall from 32% in 2024/25
Overall, there were 6,407 new complaints about mortgages down by 7% year on year from 6,895.
Buy-to-let complaints remained at a similar level with 760 new cases, compared to 795 the previous year.
The FOS’s total caseload returned to more normal levels after the huge surge caused by the motor finance scandal.
It says it received 214,600 complaints in the 2025/26 financial year, which is similar to levels seen in 2023/24 when it received 198,800 complaints. This is a 30% drop from the 305,700 cases received in 2024/25, largely driven by complaints about motor finance commission and credit cards.
Last year FOS introduced charges for cases brought by claims chasing firms.
Its aim was to encourage better evidenced complaints and make the funding arrangements fairer.
In 2025/26, more consumers brought their cases directly to the Financial Ombudsman for free and around 82% of cases were referred by consumers or friends and family on their behalf.
The FOS has also seen a fall in withdrawn and abandoned complaints referred to the service, from 35% in 2024/25 to 18% in 2025/26.
During the same period, the service has also seen an increase in the number of consumers recorded as being vulnerable, up from 10% (32,000) in 2024/25 to 25% (52,900) in 2025/26.
The Ombudsman says this follows training and other work to help identify vulnerability.
FOS interim chief ombudsham James Dipple-Johnstone says: “Following a period of significant demand, our case volumes are returning to more historical levels as measures we have implemented ensure the complaints that come to us are better evidenced and ready to be investigated.
“We continue to focus on our core purpose as a quick, informal and impartial alternative to the courts.”
