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Bank mortgage repayment blunder hits thousands of customers

Thousands of Clydesdale and Yorkshire Bank customers face increased mortgage payments after a miscalculation error, the BBC reports. About 18,000 variable and tracker rate customers are being contacted about the changes, believed to range from less than £25 to hundreds of pounds a month.

The banks, both owned by National Australia Bank, appear to have miscalculated capital repayments that led to the banks collecting less than the minimum monthly payment required for customers to pay their mortgage within their agreed term.

As a result the affected customers were underpaying on capital repayments and now have a shortfall on their accounts. The banks have asked customers to pay the correct monthly amount plus an additional monthly sum to meet the shortfall, The Guardian reports.

Steve Reid, retail director for the Clydesdale and Yorkshire Bank, said: "We are very sorry that this error has happened and for any inconvenience it may have caused those customers affected.

But Dan Plant, a money analyst at MoneySavingExpert, said: "This huge error could push many borrowers into difficulties paying their everyday bills, as the massive hikes in mortgage payments are unlikely to have been budgeted for.

"However, unlike when customers miscalculate payments and get slapped with huge £30-£40 charges, here the bank has messed up but the customers are still feeling the brunt."

 

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