The Banking Ombudsman has rejected a complaint from a borrower who purchased a property in her own name, but then decided to put it into a trust.

The bank refused to change the borrower.  The Ombudsman held that the customer’s loan agreement provided that any change in the agreement would need the bank’s consent.  It was not obliged to agree to a different legal entity being responsible for the loan and the customer could only effect the change with the bank’s agreement or by breaking the loan, paying any break fees and resetting the loan in the Trust’s name (at the then higher interest rates).

It pays to get advice from a professional experienced in the area when you are considering buying property, so the appropriate entity is on the title from the start.


Leading law firms committed to helping clients cost-effectively will have a range of fixed-price Initial Consultations to suit most people’s needs in quickly learning what their options are.  At Rainey Collins we have an experienced team who can answer your questions and put you on the right track.

Alan Knowsley