MSE News: Mortgages hikes after Yorkshire/Clydesdale Bank glitch

in Mortgages & endowments
205 replies 44.6K views


  • The scandal is the front-page exclusive in today's Glasgow-based Herald newspaper, with an associated editorial describing the Clydesdale's behaviour as "blatantly unfair".
    Unfortunately, this site won't let me post a link, but Googling herald scotland newspaper should do it.
  • tommyg7tommyg7 Forumite
    2 Posts
    Just checked the last letter I got from Clydesdale dated 30 October 2009 when they informed me that my new rate would be 1.5%. They state "your payment will be amended automatically and the Direct Debit will claim the appropriate amount from your nominated account"

    To me this means that they are saying that they are responsible for setting the repayment level. They therefore should be responsible for any screw up they make in calculating this sum. I envy the people who are being asked to pay an extra £100 odd as I'm being asked to pay an extra £450!!

    I wrote to them and they have promised a full reply within 10 days so I will post it on here when I get it.
  • hey folks,

    Got a letter from the bank saying that the £500.00 is their final offer, they sent me a detailed 3 page letter including a form to fill in to say that I agree to their offer (nope!) they also included a copy of my mortgage offer from 2006 with the original balance owed and a fixed rate of 4.9000% which is a wrong for a start as I am not even on that rate, they know we moved to a fixed tracker and I am on 1.5% so this is just laughable!

    In fact, in my eyes, the letter got quite cheeky and disrespectful and I quote

    "I agree with you that it is reasonble for you to expect the Bank to correct the mistake and to ensure that you are repaid any actual loss suffered by you as a direct consequence. However, there is a significant difference between any actual loss suffered being repaid and seeking to retain the benefit of an unexpected reduction in the mortgage balance which you agreed to and have always expected to repay. I cannot therefore agree that it is reasonble for you to refuse to pay the shortfall necessary to bring your mortgage account up to date. To expect the Bank to meet that cost is not fair either to the Bank or to our other customers who are meeting their obligations nor is it reasonable."

    They went on and on and on to say that I have borrowed money from them in the form of a mortgage and I have enjoyed the benefit of that money and am legally bound to repay the money that I borrowed, arrrgh! when did I ever say to them that I am stopping payments, in fact I agreed that I would have to pay the increased anmount per month, I just dont want to pay the shortfall as I believe the blame to lie at their door not mine!

    I am furious because basically in their eyes I have not suffered enough! I feel like have a suffered, I have a shortfall of over £1700 plus I am paying out over a hundred pounds more a month for my mortgage. Not to mention the bloody stress of it all!

    They just dont get it!

    STV, feel free to quote me if you like, unfortunately you cant get me on camera cause I would look like the wild woman of borneo after tearing my hair out over this....I wouldnt want to scare the viewers!
    Dollydebs x
  • Dolly Debs - I'm sure you look just fine! You obviously have strong feelings about the situation and we're really keen to speak to you.

    We can come to your house/work and give you enough time to prepare. The interview would be pre-recorded, not live, so if you felt uncomfortable at any point we could stop and ask the questions again.

    Give me a call on 0141 300 3360 if you want to talk about it further.

    Look forward to hearing from you soon.

  • Hiya Lesley,

    Seriously, my hair needs washed! :eek:but thats besides the point...I'd be happy for you to telephone interview me or quote any of my posts but I am in work all day and they wouldnt allow it.

    Thanks for the offer but I think my 15 mins of fame will need to wait..which is a shame really as I still have my eyelash extensions in from a wedding at the weekend but hey ho, maybe if you do a follow up feature later when I triumph over the bank! hmmm, you may have a long wait!

    DD x
  • It would be a shame not to use those eyelash extensions!

    If you change your mind you have my details. We're actually struggling to get any Clydesdale customers on camera and there is a real danger we won't have any material to put in our report.

    If you know of anyone else please pass on my details.


  • oh Lesley, pls dont make me feel bad - I blame the bank cause I cant afford the shampoo!

    really hope you get the report you want!

    Good luck and will be watching tonight....

    DD x
  • I won my case against them. You need to reject their offer of £250 or whatever it is and go to the Ombudsman. They have rules about what is called mortgage underfunding and there rules say that the banks have to pay the difference between where you are and where you should be if they hadn't made the mistake.

    Take the complaint to the ombudsman and you will win.
  • I have received that same dreaded letter from the Clydesdale on the 1st July! I immediatly rang them to find out what the hell was going on to be told that I was not showing any arears on the account and so the customer care team lass had no idea what I was talking about!! Great, I thought they have made a mistake! Anyway, then got put through to someone else who said that the letter was correct but " Technicaly, since all my payments had been made on time and for the amount requested; I do not have arrears, However - since the end on 2008, the speed that the base rate fell and their computer system was changed and not made the correct calculations, I am left owing them £2813.79 and would I like to pay it off in one lump sum and then continue with repayments of £555.99?" My morgage payments currently are a repayment and stand at £376 per month, I have 21 years left of a 25 year standard term. I was particularly confused by one part of the letter that states " Accordindly, we have re-calculated your morgage balance which now includes a refund of £17.69 for the interest that you have paid on the incorrect HIGHER morgage balance caused by the underpayments"?? I am no morgage advisor and don't understand half of what (I suspect is balony) they are saying! I asked them to put into another letter exactly the reasons for it happening and to lay out the options available to me. I have now received another letter telling me the same thing but with 3 repayment options: 1) Increase payments to £555.99 with immediate effect 2)pay the shortfall of £2813.79 as one off payment then continue paying £544.42 rather than the £555.99 3)Extend the term of the morgage. due to the circumstance the usual fee of £399 would be waived and I would contine on my existing rate of 0.54% about base rate and the fee waived. 4) Transfer Morgage to an interest only.
    Now amongst all this mess, my other biggest concern, and one I have explained to them is that we are currently on a Debt Management Plan! I cannot extend my morgage as part of the agreement I have with the DMP, I do not have £2813.79 floating about (or else I'd not be on a DMP!) and to increase out payment by £179.81 at the end of August is terrifying to us and extends our already 6 year DMP to a terrifying 10yrs and 1 month!!!
    I am beside myself as to what to do next?? Any help or advise would be great - where do I start sorting this mess out??? Thanks, Sharon
    4.9K Posts
    Shocking to see all of this.. I hope everyone gets sorted.
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