Advice required on Bank Incorrectly Calculating Mortgage Repayments please.

Karen_Mac

Just after a bit of advice please really.
Received a letter from the Clydesdale Bank this morning stating that "We recently undertook a review of your mortgage that has revealed an innacuary in the way your repayments were calculated. The effect of this, when combined with last years unprecedented rapid reduction in interest rates, is that your minimum payment has fallen below the level required to repay your mortgage within the repaid term. We would like to sincerely apologise that this situation has occured."

It goes on to say that they "propose" to increase my payments by around 60 pounds per month from July but if this is not suitable to give them a call to discuss the alternatives and again that they are very sorry.

Im guessing that the alternatives would be to make a one off payment or increase the term of my mortgage and was just looking for a bit of advice about which might be best before I make any firm arrangements.

Thank you in advance for any replies.

dimbo61

I guess your mortgage payments have dropped alot over the last 2 years !
They have sent you a letter stating that you need to increase the mortgage payment by £60 a month in order to clear the mortgage at the end of the term you first agreeded to ( IE 25 YEARS).
Can you afford to overpay and clear the mortgage even quicker ?