Money News

Yorkshire and Clydesdale Bank customers told to repay shortfall in mortgage payments

By Dominic Welling dominic.welling@consumerchoices.co.uk

Around 18,000 variable rate mortgage customers at Yorkshire and Clydesdale Bank have been unwittingly underpaying on their mortgages due to a ‘miscalculation’ by the bank.

As a result these customers now have a shortfall on their mortgage accounts which they will have to make up.

Yorkshire and Clydesdale Bank said that the calculating error - which was exacerbated by last year's falls in interest rates - has led to the bank collecting less than the contractual minimum monthly payment required for these customers to pay their mortgage within their agreed term.

These customers will now face new regular payments to reflect the correct monthly payment, plus an amount to eliminate any shortfall caused by the previous underpayments.

For around half of the customers who have been underpaying, the total suggested increase is less than £25 a month of which around £2 will be used to cover the shortfall.

Steve Reid, retail director for Clydesdale Bank, said: "First and foremost we are very sorry that this error has happened and for any inconvenience it may have caused those customers affected.

"We would like to reassure mortgage customers that they need take no action unless they have received a letter from us.”

According to Reid, the vast majority of customers are not affected and, of those that are, 99% have already received a letter advising them of the specific impact on their account.