Ulster Bank is to notify about 90,000 current and former customers following a “mortgage system-generated error” that may have affected the amount of interest they paid and the subsequent phasing of their repayments.
The issue, for which the bank apologised on Friday, was discovered as part of its withdrawal process from the Irish market.
In a statement, it said in the majority of cases “the error had a minimal impact on the amount of interest accrued on the mortgage and/or the phasing of the monthly mortgage repayments”.
“In some cases, this meant mortgage repayments were spread over a term that was up to two months longer or shorter than the contractual term of the mortgage,” it explained.
The error did not affect the interest rate applied to the mortgage or the total amount of capital owed, the bank has said.
All mortgages that may have been impacted by this issue are to be reviewed, which they estimate to be about 90,000.
According to the statement, the average impact on a customer’s mortgage was about €50. The bank also said nobody would be left out of pocket as a result.
“To rectify this, Ulster Bank will make a payment to address the issue. Customers do not need to take any action,” it said.
“All current and former customers will be contacted by Ulster Bank on a phased basis over the coming months to explain the issue in detail, what we are doing to fix this and the details of their payment.”
Customers with questions have been advised to visit the bank’s support hub or to ring its customer service team.
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