Complaints upheld against Clydesdale and Yorkshire bank mortgage underpayments

Mortgage arrears wiped off by FOS for innocent bank customers. The Financial Ombudsman has found in favour of customers who complained about having to pay back mortgage arrears to their bank. Complaints made to the Financial Ombudsman Service by customers of the Clydesdale and Yorkshire Bank, who were sent letters to pay back their mortgage arrears after being undercharged for months through no fault of their own, have been upheld. A miscalculation made by the two lenders, owned by National Australia Bank, had meant that the monthly repayments of almost 18,000 customers had been too small. Letters were sent out to those affected in July, which outlined the problem and demanded payment of the arrears in either a lump sum or in monthly repayments split across the remainder of the repayment period.

Mortgage miscalculation means borrowers must pay shortfall

An estimated 18,000 thousand mortgage holders will have to increase their monthly repayments after a miscalculation made by Yorkshire and Clydesdale bank. Half of those affected will pay an extra £25 a month to keep up with their variable rate mortgages. But up to 700 people will have to pay a substantial sum of £200 each month on top of their usual repayments.