Bank error hits mortgage customers

An error by the Yorkshire and Clydesdale Bank could see thousands of mortgage customers facing higher repayments each month.

The bank said some 18,000 customers have been left with a shortfall on their variable rate mortgages after it miscalculated their monthly repayments.

The problem had been exacerbated by the record low interest base rates, the bank said.

Yorkshire Bank is a division of Clydesdale Bank, which is in turn a subsidiary of National Australia Bank.

Affected customers, two thirds of whom are Clydesdale customers in Scotland, have now been asked to pay the correct monthly amount, plus an additional monthly sum to meet the shortfall.

While around half of the customers - some 9,000 people - have been asked to pay an increase of less than £25 a month, the rest face soaring repayments of up to £300 a month.

The bank said there were other options available to customers, including making a one-off payment to cover the shortfall, or extending their mortgage term, and they were dealing with problems on a case-by-case basis.

A bank spokesman added that the "vast majority" of mortgage customers were not affected by the issue, but added that there were around 180 customers who had not yet been told that they had underpaid.

Back to blog home


All content is for informational purposes only and is the opinion of the author. Nothing on this website should be interpreted as "advice". Money Dashboard Ltd make no representations as to the accuracy, completeness, suitability or validity of any information on this site and will not be liable for any errors or omissions or any damages arising from its display or use.

Related articles

Download app
Important Information: Money Dashboard Neon and Classic mobile and web apps are now closed as of 31/10/2023. Please see our FAQs for more information.