MSE News: Mortgages hikes after Yorkshire/Clydesdale Bank glitch

dave_jay

Thanks for the reply .. I was thinking more or less along the same lines, no matter how you work it out it doesn't add up.

I'm going to wait until I get a proper repsonse from them with some proper figures before I make any judgements, but you appear to be right, that's it's not just interest that's missing.

Thanks again for having a look at this .. :beer:

birdsong247

Got my letter and made the call to the 'expert' in Clydesdale customer service - 30 minutes of evasive responses but a promise to send me a full breakdown of account comparison and the T&C's of the mortgage in 5 days - so the clock is running on their response time.

My views

i) I feel there is evidence the letter and the CB adviser commentary are contradicting each other and as posted above - it's not just an interest thing. I was advised that there was a mistake in their calculator, which was discovered 'recently' - the adviser would not be drawn on exactly when.

ii) be aware as the complaints gain momentum, CB (if they have any sense) will follow this Forum - so be careful about giving specific personal details lest you get a counterclaim libel.

iii) in line with ii) above, the problem is clearly not just in the West of Scotland - it is across the UK, we're out circa £5k.

iv) spoke to the FSA, they correctly advised that interest changes are a commercial decision and not one for them to review. I explained interest changes are a smokescreen and there was a flaw in the mortgage product (see v). They recommended i) a formal complaint should be made to CB, who have 8 weeks to respond; and b) if the response is unsatisfactory or unreasonable then a complaint should be made to the Financial Services Ombudsman, who will investigate. To be fair to CB they offered me the opportunity to raise a complaint and delay the change to payments - however, I feel I need to explore how this would affect my credit rating, albeit I am reluctant to pay up and then seek recovery.

v) the whole point of a Tracker (we have it offset too) is to accelerate payments / capital repayments as the interest rate moves around (up and down), this is at my risk and control vis capital repayments. The CB have undermined our contract and this tracker product by seeking an increase in my payments by 40% per month for the remaining lifetime of my mortgage. When interest rates start to move upward feel I am going to be out of significantly financially disadvantaged. I for one will be making a formal complaint having received the detailed breakdown from CB on receipt or otherwise.

In reading other posts - I for one will be seeking a write-off the capital sum as a starting point, I agree I am contractually bound to repay the debt and interest (variable = my risk), but I should not suffer or be held accountable for a mistake on a CB spreadsheet.

I appreciate recent history indicates I may considered somewhat naive - but if you can't trust your bank who can you trust !?

Two final questions ...

- I received a couple of letters during the last 18 months advising me that there had been an adjustment in terms of offsetting - has anyone else get these !!?

- Are Yorkshire Bank customers also being hit ? Same banking group NAS !

I will be fighting this and the offer of £250 to a fellow poster (above) - is an insult !

bullybear

Hiya

We had similar problem with nationwide with our first mortage we were put on a interest only mortage and we had signed for a repayment one.

we received a letter 12 months later saying did with have a product that would be able to pay the mortage off . we contacted them and found out what had happened.

we owed them £1200 in arrears they offer us 25% of this but after continues complaints and letters they agreed 75% compensation and we wrote to the fsa. Who supported use.

If you have been told that it was due to software there end you should have a strong case to get a % back off them.

Skyerocket_2

Hi All,

This forum has been so helpful. I thought I was the only one to have been hit with this.

We recieved the standard letter which stated an increase from £964 to £1348 in our payments. The reason given was a miscalculation the bank made when interest rates were falling.

Doing the sums myself however it now seems clear that from 2008 we simply weren't paying enough to cover both interest and capital for the remaining 18ys of our term. I was totally unaware of this.

Like others I do acknowledge my part is to repay the capital. But, I did select this product in the expectation that the mortgage would be paid off at the end of the term. The CB have let us all down very badly here.

My deficit has been stated as £7900 which I cant afford to pay as a lump sum, if I don't pay now I have been told that I'll be paying interest on that since it has been effectively added to the remaining sum of the mortgage.

I am currently awaiting the full breakdown of their failings and have opened a formal complaint.

Interestingly the advisor on the phone quite quickly offered me a 10% compensation offer £790 if I would accept the new arrangement. I was livid so said no thanks, I'm just worried now that the complaint procedure will grumble on for months with me paying the extra interest and we won't get any compensation in the end.

I hope all of you will continue to update this forum with your outcomes. It will be very helpful when negotiating compensation.

I for one feel they should write off the £7900 but know thats unlikely. I will be holding out for 50% minimum however.

Best of luck all!

Skyerocket_2

bullybear wrote: »

Hiya


we owed them £1200 in arrears they offer us 25% of this but after continues complaints and letters they agreed 75% compensation and we wrote to the fsa. Who supported use.

If you have been told that it was due to software there end you should have a strong case to get a % back off them.

Thats very encouraging Bullybear.

Can you recall how long it took to be compensated?

At least CB have admitted it is their fault

Wulfrune

Clydesdale bank wrote to me today and enclosed a form that I must fill in, then call them between 9 & 5 pm and to expect to be on the phone for at least one hour... so there letter said.

Want to know what info they wanted?

They want:

My income details

Wages

Pension

Rent / Board received

Child Benefit

Child Tax Credit

Child Maintenance

Income support

Job Seekers allowance

Incapacity benefit

Disability Living allowance

Working tax credit

Now being satisfied with that, they also want to know for myself AND my wife the FULL details of:

Priority Expenditure

Mortgage / Rent

Secured loans

Mortgage endowment premiums

Council tax

Service charge / ground rent

TV Licence

Water

Electric

Gas

Other fuels

Magistrate fines

CCJ's / Decrees

Child Support agency / Maintenance

National insurance

Income tax

THEN

my living expenses:

How much I spend on:

Food

Toiletries

Clothing

Foot ware

School meals

Meals at work

School trips

Gym

....................... Oh I think you're getting the point.

I know feel like this is a absolute gross invasion of my privacy. I don't care HOW much I am supposed to owe them (FOR THEIR C*CK UP) I do not want ANYONE knowing that much about me, let alone this bunch of worthless idiots.

I mean, what do they want?

Do they mean to tell me that I have to cut down on my meals at work perhaps? Maybe they'll suggest I can take my own sandwiches.... And why stop there? why not suggest I shop at Aldi instead of M&S?

Ooooh and the Sky TV HAS to go too....

Like I said, I think you can see where this is going.

I have had enough, I am NOT going to fill in there interrogation questionnaire as I believe that it's a gross invasion of my privacy.

I am so depressed about this issue that I'm having to see counselors because of the stress that they're putting me under. I feel now that the only way forward is to spend MORE money and get some legal help, because I honestly believe ( and I'm trying not to be too dramatic about this) that this is getting me so down, I now longer wish to be part of this damn planet.

They are driving me to despair, I cannot take this anymore.

hants34

Just posted the following and someone (opinions4u) kindly directed me to this thread where others have the same problem. Has anyone had any joy with this issue yet? Had a response from Clydesdale or an ombudsmand? I am going to ring Clydesdale Monday and ask for a full written explaination and request that no charges are added until the issue has been sorted.
Thanks, Martin

Hi, hoping someone can offer some guidance.
I have just received a letter from my mort co. advising that "following a review of your mortgage we have revealed an inaccuracy in the way your repayments are 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 agreed term"
My mortgage is for approx £130,000 with approx 15 years remaining. They propose my payments increase from £662.29 (they seem to have not noticed my monthly overpayment of £100 as my last statement requested £562.29) to £783.95 pm an increase of £221.66 (not inc my current voluntary overpayment)
Last year, as expected I got a revised payment amount almost every month as I have a tracker which now shows an interest rate of 1.15% and I have letters confirming this from the mortgage co.

Is it acceptable for mortgage companies to do this? Are they not liable in any way for "their" mistake? If I made such an error at work my co. would have to write it off, not that I'm expecting for one minute my mortgage co. would do this! It all seems a bit wrong.
I'm not too bothered that my repayments won't pay off the final amount as I plan to move in approx 2 years.
I thank you in advance for any guidance provided.
Martin

getmore4less

As I pointed out on a previous post MOST of the increase will be to bring the payments up to what you should have been paying, this they can do.

It is the extra to cover the shortfalls due to under payments that need negotiations.

They have realy messed up with the notifications not seperating the two parts.

getmore4less

hants34 wrote: »

My mortgage is for approx £130,000 with approx 15 years remaining. They propose my payments increase from £662.29 (they seem to have not noticed my monthly overpayment of £100 as my last statement requested £562.29) to £783.95 pm an increase of £221.66 (not inc my current voluntary overpayment)
Last year, as expected I got a revised payment amount almost every month as I have a tracker which now shows an interest rate of 1.15% and I have letters confirming this from the mortgage co.

£130k @ 1.15% over 15years is around £787pm

This is around what you should have been paying all along.

You will need a detailed breakdown to find out the inpact of the underpayments but is will not be very much

You have been saving about £200pm on what you should have been paying.

hants34

getmore4less wrote: »

£130k @ 1.15% over 15years is around £787pm

This is around what you should have been paying all along.

You will need a detailed breakdown to find out the inpact of the underpayments but is will not be very much

You have been saving about £200pm on what you should have been paying.

Thanks more4less, so they have even managed to get this calculation wrong too! Inspires confidence. I will be ringing them monday and have just sent them an enquiry via their website which only allows 300 characters, very difficult to get info over in this amount, used a cons' no. of abbr's. When you go over your quota of 300 a box pops up to tell you but is only present for 1 second so you have to read very quickly or wait for the box to pop up again so that you can read the next line of text! I'm loosing faith in the Clydesdale bank and doubt I will use them again.