The number of complaints about mortgages jumped by 56% in 2020/21 compared to the previous year, figures from the Financial Ombudsman Service reveal.

In 2019/20 there were just 7,613 new mortgage complaints brought to the ombudsman, but over the past year during the pandemic this figure leapt to 11,835.

Almost 90% of the past year’s mortgage complaints, or 10,510 cases, related to residential mortgages, which includes second charge and Help to Buy loans.

Complaints about buy-to-let mortgages accounted for 807 cases, while there were 498 complaints about equity release.

Uphold rates were 23% for mortgages in general last year, but just 6% for equity release complaints.

This compares to an overall uphold rate of 40% across all financial product areas excluding PPI.

A spokesman for FOS says that the past year’s caseload included complaints about contract terms and standard variable rates, relating to reductions in rates not being passed on when the base rate dropped.

More consumers have found themselves in financial difficulties or exercising forbearance options under the guidance from the FCA. 

There were also some teething issues with businesses implementing that guidance or consumers not understanding the impact of their decision to take a payment deferral. 

Covid-19 also prompted delays in processing mortgage applications as a result of high demand and staff working remotely.

Changes in lending appetite and criteria, meant that some applications that might have previously been successful were declined.

Looking at the broader FOS data, the overall number of non-PPI complaints received last year was up by 58% from 149,315 in 2019/20 to 235,993. 

Banking and credit complaints were the main driver of this, up by 66% to 170,648.

Unaffordable lending was the most complained about issue within banking and credit, accounting for 57,571 new complaints, which related mainly to unsecured loans and credit cards. 

There was a 91% increase in complaints about investments and pensions from 10,920 in 2019/20 to 20,854.

FOS received 42,040 complaints about PPI, compared with 122,153 last year as the deadline for submitting claims passed in August 2019.

FOS interim chief executive and chief ombudsman Nausicaa Delfas says: “The Financial Ombudsman Service continues to provide an essential service, helping people with hundreds of thousands of complaints about financial businesses last year. 

“Over the past year, we have seen demand for our service increase significantly, and our teams are working to provide resolutions in cases as quickly as they can.

“The sharp increase in complaints about issues other than PPI is a reminder that it has rarely been more important for financial businesses to support their customers when things go wrong. 

“As people continue to deal with the impact of Covid-19 on their lives and finances, they know they can come to our service if they’re not happy with how a financial business has treated them.”