Complaints about mortgages rose by nearly 50% in the past year and easily topped the league table of problems dealt with by the Banking Ombudsman scheme.

According to its annual report the number of complaints rose from 2,119 to 3,104, making up nearly 25% of the total workload.

One of the biggest mortgage complaints concerned charges levied on homeowners who repay fixed rate mortgages early.

One example given was of a £42,000 charge to repay a loan of £60,000 ahead of schedule.

Rates clearly shown

The ombudsman said lenders should make it clear what their early repayment charges were and not bury them in the small print of documents.

He also said there should be a cap on the maximum repayment charge and sympathetic treatment for borrowers who were forced to repay early through genuine hardship.

His calls on mortgage repayment charges were welcomed by Trade and Industry Secretary Stephen Byers, who said: "I hope that all the lenders, not just the banks, will heed it."

The Banking Ombudsman scheme was set up in 1986 and covers 126 banks and subsidiaries and dealt with more than 12,000 complaints last year.

Next year it is due to be merged into the Financial Services Ombudsman Scheme to create a more broadly-based body.