Ombudsman sees drop in mortgage cases

Complaints, inquiries and disputes relating to mortgage sales fell by 14% last year, according to the Banking Ombudsman Scheme’s 2018 annual report.

The report, released today, shows customer disputes over mortgage advice fell despite a wider increase in overall bank complaints.

Cases regarding loan to value ratio (LVR) disputes also fell over the year, the report shows. LVR-related cases dropped 13 percent in 2017-18, according to the Ombudsman.

Nicola Sladden, head of the Ombudsman, said the drop could be a decrease in the number of early repayment cases, as well as increased awareness of LVR restrictions. She told TMM Online: "We had a spike a couple of years ago but haven't had a continuation of those claims. The numbers also suggest New Zealanders are becoming more familiar requirements around LVR."