Thousands of Clydesdale Bank customers are facing soaring mortgage payments thanks to a problem with the bank's computer.
Apparently the bank's computers miscalculated 18,000 borrowers’ repayments on some of their tracker and variable-rate mortgages. Some users saw their payments rise by £300. The computer error is the worst in British banking history since since Halifax, now part of Lloyds Banking Group, discovered 40,000 of its customers had been making incorrect payments nearly a decade ago.
Halifax reimbursed and compensated those who had been overcharged and wrote off debts from those who had been undercharged. The Clydesdale and Yorkshire is offering compensation of up to £500 to undercharged customers, who are now expected to make up shortfalls in their mortgages. Many have refused the offer.
It is not clear how the bank's software suddenly had a rush of blood to its electronic head and worked out that people owed so much. While some are blaming a software upgrade, the bank is keeping quiet.