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Clydesdale and Yorkshire mortgage error hits repayments
Thousands of Clydesdale and Yorkshire Bank customers face increased mortgage payments after a miscalculation error.
About 18,000 variable rate customers are being contacted about the monthly changes, believed to range from less than £25 to hundreds of pounds a month.
It has been reported one customer, Norrie Silvestro of Aberdeen, faced a 22% rise in payments.
A Clydesdale Bank spokesperson said: "First and foremost we are very sorry that this error has happened."
The calculation error was said to have been "exacerbated by last year's unprecedented falls in interest rates".
This led to the bank collecting less than the minimum monthly payment required for customers to pay their mortgage within their agreed term.
This meant the affected customers had been underpaying, and now have a shortfall on their account.
'Vast majority' The banks have written to affected customers to apologise, and suggest ways to remedy their accounts.
Clydesdale said that for about half of the customers who have been underpaying, the total suggested increase was less than £25 a month.
Steve Reid, retail director for Clydesdale Bank, said: "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"
Both Clydesdale and Yorkshire Banks are members of the National Australia Bank Group.
Clydesdale and Yorkshire mortgage error hits repayments
Thousands of Clydesdale and Yorkshire Bank customers face increased mortgage payments after a miscalculation error.
About 18,000 variable rate customers are being contacted about the monthly changes, believed to range from less than £25 to hundreds of pounds a month.
It has been reported one customer, Norrie Silvestro of Aberdeen, faced a 22% rise in payments.
A Clydesdale Bank spokesperson said: "First and foremost we are very sorry that this error has happened."
The calculation error was said to have been "exacerbated by last year's unprecedented falls in interest rates".
This led to the bank collecting less than the minimum monthly payment required for customers to pay their mortgage within their agreed term.
This meant the affected customers had been underpaying, and now have a shortfall on their account.
'Vast majority' The banks have written to affected customers to apologise, and suggest ways to remedy their accounts.
Clydesdale said that for about half of the customers who have been underpaying, the total suggested increase was less than £25 a month.
Steve Reid, retail director for Clydesdale Bank, said: "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"
Both Clydesdale and Yorkshire Banks are members of the National Australia Bank Group.
