The Clydesdale and Yorkshire Bank have written to approximately 18,000 variable rather mortgage customers to increase their monthly payments due to an underpayment calculation error.
In their press release the Banks indicate that they are “very sorry” that the error has happened and for any inconveniences this may have caused. The calculation error has now been resolved and each customer is being contacted to work through ways to repay any shortfalls that have arisen.
For half of customers the error has resulted in an increase of less than £25 per month but for others it may well be more. The Banks are giving customers flexible payment options.
Customers that have been affected should already have been contacted by the Bank.
Steve Reid, retail director for Clydesdale Bank spokesperson 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. The vast majority of our customers are not affected and, of those that are, 99 percent have already received their letter advising them of the specific impact on their account. The other 1 percent will hear from us in the next couple of weeks advising them of options to bring their account back on track."