Yorkshire and Clydesdale apologise for calculation error

21 July 2010 0:00 am | Updated: 21 July 2010 11:28 am | By Paul Thomas

Yorkshire and Clydesdale banks have written to around 18,000 of its variable rate mortgage customers apologising for an error which has meant they have been underpaying their mortgage.

The calculation error led to the banks collecting less than the agreed minimum monthly payment required for customers to pay their mortgage within the terms of the loan. The banks say the error has now been corrected and apologise for the inconvenience.

The letters contain the correct amount plus the amount needed to correct the shortfall. For around half of the customers who have been underpaying, the total suggested increase is less than £25 a month - of which around £2 is to cover the shortfall. However, the banks say it is flexible if the shortfall repayment is not suitable for the customer.

Clydesdale Bank retail director Steve Reid says: “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 per cent 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.”

Clydesdale and Yorkshire banks are members of the National Australia Bank Group, with a combined network of 340 retail branches and 72 financial solutions centres.

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