Clydesdale and Yorkshire Banks ‘sorry’ for error - Mortgages - News - Moneyfacts

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Clydesdale and Yorkshire Banks ‘sorry’ for error

Clydesdale and Yorkshire Banks ‘sorry’ for error

Category: Mortgages

Updated: 31/12/2012
First Published: 21/07/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Clydesdale and Yorkshire Banks have apologised for an error that led to thousands of customers underpaying their mortgages.

The banks said that they had almost completed the process of writing to all their 18,000 variable rate mortgage customers that have been affected.

The mistake was caused by a calculating error, said the banks, exacerbated by last year's unprecedented interest rate falls.

Customers now face increased payments to make up for the shortfall, although the total suggested increase is less than £25 a month for around half of them.

"The new regular payments, suggested to customers in their individual letter, reflect the correct monthly payment, plus an amount to eliminate any shortfall caused by the previous underpayments," the banks said in a statement.

Customers have been reassured that they will be provided with other options if they feel their new payment plan is not suitable.

Of the 18,000 people that have been underpaying their mortgages, all but 180 have been contacted.

Steve Reid, retail director for Clydesdale and Yorkshire Banks, 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."

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