Offset Mortgage Problem - Swizz

jht123

Advice Please

We took out a 10yr Offset mortgage three years ago with the Clydesdale Bank
We were told this would be paid off sooner allowing for the offset accouts, but no more than 10yrs. We kept the offset balances above the mortgage amount for the full three years to get the maximum benifit.
We have received a letter from Clydesdale stating 'a review of your mortgage has revealed an innaccuracy in the way your repayments were calculated. The effect of this when combined with the unprecedented reduction in interest rates, is that your minimum payment has fallen below the level required to repay your mortgage within the agreed term'.
They have raised our payments making it £2,500 more to be paid over the next 7yrs.
This gives no mention of our offset benifits (Morgage being paid off early).

Is this legal? Can we do anything about this? Is this a mis-sold morgage?

Any help appreciated

Trying_to_be_good

Have you been able to work out if their figures are right? I suggest you dig out all the paperwork, and perhaps post some o the details here so people can help you check, then you can go back to your lender with some facts of your own to ask if they're right.

Cannon_Fodder

Search for Clydesdale on here, plenty of threads will similarly affected people...