Miscalculated Mortgages By Clydesdale Bank

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 not fault of their own, were left facing shortfalls totalling £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 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 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.

Free Mortgage Audit

We’ve worked for banks on the inside. We know that they often get it wrong and when they do, they try to cover it up.





Are you eligible?

Have you been with the same mortgage provider since 2009 or earlier?

You are eligible to claim

If you originally borrowed more than £100,000

Are you eligible?

Was your mortgage taken through a non-mainstream lender (often referred to as a sub-prime mortgage) on or before 2011?

You are eligible to claim

If you originally borrowed more than £75,000

Are you eligible?

Did you repay your mortgage in the last 10 years and were you with the same lender for more than 7 years?

You are eligible to claim

If you originally borrowed more than £100,000 or £75,000 if via a non-mainstream lender

How were mistakes made?

Miscalculated Clydesdale Bank Mortgages

Beat the Banks have uncovered that millions of mortgage customers of Clydesdale Bank in the UK have been systematically overcharged interest and charges on their borrowing. This can range from a simple breach of the mortgage terms and conditions through to unfairly managing mortgage arrears.

By auditing thousands of mortgages, we can establish that the incorrect application of interest and charges by lenders can apply in up to 85% of all mortgage contracts. This includes interest only and buy to let borrowing.

In conjunction with industry partners, we can now fully audit how charges and interest payments have applied to mortgages in direct comparison to what has been stated in the T&C’s accompanying the lending.

In many cases, sight of the Mortgage Offer alone can give sufficient indication that a claim is likely.





The key criteria and being eligible to claim?

In many cases, sight of the mortgage offer alone can often give sufficient indication that a claim is likely. If you have this paperwork available then you can post, scan or email the information to us along with our signed authority permitting Beat the Banks to share the contents of your mortgage paperwork with our partners. If you prefer, you can simply bring your documents along to our office in the centre of Dundee. Sight of the loan offer is helpful, but not essential.

If a mortgage meets the key criteria, the next stage is to recover the FULL borrowing records from the mortgage provider via a Subject Access Request under the terms of the Data Protection Act 1998. Once received, the file is checked to ensure the lender has fully supplied the correct information to allow a full audit to take place. The documentation is then passed to our partners.

Details from the loan offer and the mortgage terms and conditions along with annual statements, rate change letters and any associated correspondence are then fed into our certified and validated mortgage checker. A report is collated highlighting and verifying the scale of any interest and charges applied to the borrowing in error.

You will then be advised of the outcome. If we believe that there is no claim or if any claim is of insufficient value to proceed, we will advise you. You will not be liable for any of the costs that we have incurred to date.

If we believe that the level of interest and/or charges applied to your mortgage account are of sufficient value to proceed with a claim, we will let you know. If you decide not to proceed, you will not be liable for any of the costs incurred to date.

Should you wish to proceed, we will forward your file to our solicitors and they will contact you to progress a claim. To engage their services, you will be asked to sign and accept their terms and conditions and also a contingency fee agreement.

To find out more on how we can help you recover overpaid interest and charges on your mortgage, our office numbers are 01382 200474 or 0800 193 1234. We are open from 8am-8pm Monday to Thursday. On Fridays we close at 6pm and on Saturdays it’s 10am-2pm.

If you prefer, you can email enquiries to claim@beatthebanks.co.uk or simply call with your paperwork to our office.

Over 30 Years

In Financial Forensics

Contact us today, start your claim journey and together we will beat the banks.

Or call us: 0800 1931 234

Address

11 Albert Square, Meadowside, Dundee, DD1 1DD

Phone

0800 1931 234

Fax

+44 (0) 1382 201 284

Email

claim@beatthebanks.co.uk

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Beat The Banks

11  Albert Square

Meadowside

Dundee

DD1 1DD

 

Company Registration No: SC413541 PPI Reclaims (Scotland) Ltd Claims Licence number CRM29125.