Mortgage errors on the increase (From The Bolton News)

Mortgage errors on the increase

4:33pm Thursday 2nd September 2010 in

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INCREASING numbers of homeowners are complaining about their lender after discovering they owe more on their mortgage than they had previously thought.

The Financial Ombudsman Service said its technical desk had recently seen an increase in calls about mortgage underfunding after lenders had miscalculated customers’ repayments.

The issue came to the fore last month when it emerged that 18,000 customers at Yorkshire and Clydesdale Bank had been underpaying their mortgages due to an error by the group.

But the ombudsman warned that unless the lender could be shown to be “entirely to blame” for the situation, consumers were unlikely to qualify for compensation.