First Direct error leaves some mortgage customers facing higher repayments – and others in line for money back

MoneySavingExpert.com learned of the mistake when a MoneySaver tweeted us with a letter from First Direct telling him that his payments would be rising from April. 

When we contacted the bank for more information, it admitted that a miscalculation had affected less than 3% of its mortgage customers, who would see their monthly payments increase or receive a credit to their balance to rectify the mistake.

It said the issue related to recalculations following voluntary overpayments, interest rate changes and changes to terms – but that the vast majority of disparities were in "single digits".

Affected customers have been sent letters giving them a month's notice if their repayments are to increase. If they're due money back, First Direct says this will happen automatically.

The bank has apologised for the error and says that the issues identified have been fixed.  

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How do I know if I've been affected?

First Direct says that those affected should have been told by now, via letter.

If you think you've been affected but haven't been contacted, you can call First Direct on 0345 6100 103.

I'm affected – what should I do?

First Direct says customers will not generally have to take action, because their payment will be increased or they'll get cash back automatically.

If you're unhappy with how First Direct has dealt with the issue you could try complaining directly to it. Find out how to do this on its website.

Then if you're still unhappy when you receive the response, you can escalate your complaint to the Financial Ombudsman Service (FOS). You can find details on how to do this using our FOS guide.

What does First Direct say?

A First Direct spokesperson said: "We regularly review our mortgage accounts to ensure everything is on track. During a review we've discovered an issue with a small number of customers' monthly payments.

"We're really sorry for this and are contacting all affected customers to place them back into the position they should have been in, had the issue not happened."