The number of complaints about home financing rose 3.7% to 94,822 in the last half of last year, compared to the previous six months, the city’s regulator said.
The Financial Conduct Authority adds that 67,509 complaints were upheld during the period, with £16 million paid out to customers.
Grievances about home financing deals topped the list of product groups where the number of complaints increased.
TotallyMoney chief executive Alastair Douglas said: “At a time when it should be doing its utmost to support struggling customers, the financial services industry continues to let down the people it should serve.
“Covid and the cost of living crisis have and will continue to affect people’s financial resilience be a feeling the consequences for the coming years. Yet we still see insurance companies charging almost 40% interest to distressed customers just now have to pay monthly, while the banks charge appalling savings interest rates and increase costs for borrowers.
Vestigo Partners employee partner Tom Cuppello added: “This complaints data and the arrival of Consumer Duty is another reminder for lenders that they need to start thinking about what processes need to change and what investments are needed to avoid regulatory impacts.”
General, The watchdog says financial services firms have received 1.87 million complaints, down 1% on the first six months of last year.
It adds that 58% of cases were maintainedpaying out £259 million in damages, a 10% increase from the first half of 2023.
FCA points out: “Since Payment Protection Insurance peaked in 2020, total complaints have remained relatively constant between 1.8 million and 2 million.”
Apart from housing finance, the sectors that received the largest increase in complaints were investments upwards 3.4% to 61,446, and bank and credit cards upwards 3.2% to 874,568.