Over 270,000 Santander mortgage customers will receive details of an increase to the lender's standard variable rate (SVR) cap after being sent "unclear" information at the time of the changes five years ago.
A statement by the new financial regulator, the Financial Conduct Authority (FCA), confirmed that an agreement had been met with the bank, whereby affected borrowers will be sent letters explaining what changes occurred and inviting them to lodge complaints if they feel they have lost out financially.
Letters will be issued between 22nd April and Autumn 2013. A helpline has been set up to specifically deal with customer enquiries on the matter, whilst details of the changes have also been placed on Santander's website.
The FCA warned that despite the large number of people being contacted by Santander, only a small number of customers may be able to claim money as a result of the increase and would be based on individual circumstances.
The Financial Services Authority (FSA) claimed the original letters issued by Santander following the increase to its SVR cap were "unclear", and had passed supervision of the matter to the FCA when it came into effect at the start of this month.
Santander increased its SVR cap in 2008 from 2.5%, plus the Bank of England base rate, to 3.75% plus the base rate. Since then, the cap has been raised again to 4.99% plus base rate, with its current SVR standing at 4.74%.
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