Irish lender Ulster Bank’s error on miscalculation of the tax relief may force thousands of its customers to pay higher mortgage repayments bill.
The bank, which was bailed out by the UK government by pumping 16bn capital, admitted that it miscalculated the tax relief on 7,500 home loans.
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In order to recoup the money, the bank has decided to get it back from mortgage holders over the rest of the year. Some tracker, variable and fixed rate mortgage-holders are expected to cough up to nearly 330, as reported by independent.ie.
Most of those affected mortgage holders purchased mortgage during the height of the boom and own huge mortgages.
Ulster Bank was quoted by independent.ie as saying that its miscalculation amounted to around 64 on average for each householder affected.
"We are aware of an error in tax relief at source collection earlier this year which resulted in reduced payments from some customers," the bank told the publication.
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By GlobalData"The issue has been resolved and we have written to customers to advise them of the process. Ulster Bank apologises for any inconvenience caused."
