Miscalculated Mortgages - Clydesdale Bank
If you currently have a mortgage with Clydesdale Bank and have done for a number years, there is a significant chance that your borrowing may have been miscalculated for a number of reasons. This includes interest only, repayment and Investment Housing Loans (Buy to Let mortgages).
In 2013 Clydesdale Bank Group, which includes Yorkshire Bank, were fined £8.9 by the FCA for not treating mortgage customers fairly. In April 2009, the bank discovered it had incorrectly calculated the payments on over 42,500 mortgages. Of that figure, some 22,000 mortgage holders, through no fault of their own, were left facing shortfalls totaling £21.2 million. In 2010 Clydesdale Bank then proceeded to compound the error by automatically increasing their monthly payments.
The FCA Final Notice meant the Bank were obligated to write to all affected customers and then to subsequently fully address and write off their miscalculation errors. The whole debacle left the bank with a bill of over £42 million.
Back in the late 1980’s Clydesdale Bank were the first UK bank to bring to the market the concept of overpaying your mortgage on a monthly basis in order to reduce the total amount of interest charged and in turn the mortgage term.
Named the Flexible Repayment Mortgage or FRM, it was an Australian concept brought to Scotland via the Bank’s antipodean owners, National Australia Bank. FRM’s were designed to be subject to an annual review. Sales targets, unfortunately, meant that in reality this was often ignored and in the times when it wasn’t, it was down to branch staff to manually calculate and apply the new payments.
Many years later the Group introduce their Rapid Repay option. Similar to the Virgin One account, mortgage borrowing was bunched together with savings and salary lodgements. The objective again being early repayment of the mortgage. Calculating payments and tracking interest charges on this type of mortgage borrowing is acknowledged as being extremely complex.
Back in the 1990’s, Clydesdale Bank were also one of the first Scottish banks to dip their toe into the Buy to Let market. Termed as Investment Housing Loans, these mortgages allowed property investors to buy to become landlords with as little as a 20% deposit.
If you currently have a mortgage with Clydesdale Bank, have done for more than 7 years and initially borrowed more than £100,000, then Beat the Banks are currently offering to audit your mortgage for free. We can also consider previously repaid mortgages with Clydesdale Bank providing they were taken no earlier than 2000 and repaid no less than 7 years later. Again this is subject to a minimum initial amount borrowed of £100,000.
For more information on how to receive our entirely free mortgage audit, please contact Beat the Banks on 01382 200474 or for free on 0800 193 1234. Or if you live locally, why not simply pop into our office with any of your mortgage paperwork and we can start the audit process immediately. Our hours are 8am-8pm weekdays, except for Fridays when we close at 6pm. On Saturdays it 10am-2pm.