HSBC Mortgage - booking fee before valuation??

Heyman_2

Hi all,

I think this has already been covered here but just wanted to add my experience.

Currently we've had an approval subject to Valuation on our re-mortgage. We are looking for 90% LTV, so obviously the valuation is critical for us.

HSBC asked for the booking fee prior to valuation. I expressed concern about what happens if the valuation is not to our expectation. They said they would refund the fee if that happens. I said fine, we'll just have that in writing and we're good to go ahead and pay the fee, and that's where we're at now. Apparently according to them, no-one's ever asked for this before (now come on, really - EVER?)

I spoke to the FSA and they reckon we're right to request this and that the bank should really do it if they're prepared to offer that over the phone. At this point I'm waiting for a call back from a 'Manager' about it, but not too sure what we're going to do if they refuse, given we're quite far into the process now. HSBC say they've made notes on our account to say the fee will be refunded and that they record all their calls, but for some reason that isn't giving me the warm fuzzy feeling a hard copy declaration would :rolleyes:

What do you guys think?

londonj_3

Hi, can I ask what happened in case?
I am in the same situation, I am after a re-mortgage which requries a 60% LTV - I had an estate agent value the property for me and based on his value I can make the 60% LTV. However HSBC told me that they would independantly vlaue it and if this is a lower figure then they re-mortgage would not proceed and my arrangement fee would NOT be refunded (unless I can stump up the difference in cash!). As it's difficult to price houses (none have been sold similar recently) I'm a bit wary, I think the fact they refuse to refund is unfair, particulalry if I have proceeded based on a "professional's" estimation, I have a letter from the estate agent with his estimated valuation. Any others had a similar experience - I'm really concerned whether to proceed as I can't afford to lose the £799 fee!

Claremac

Can you ask for the arrangement fee to be added to the mortgage so that you wouldn't end up paying it if you don't take the mortgage? This was suggested to me by another bank.

Baz_2

londonj wrote: »

Hi, can I ask what happened in case?
I am in the same situation, I am after a re-mortgage which requries a 60% LTV - I had an estate agent value the property for me and based on his value I can make the 60% LTV. However HSBC told me that they would independantly vlaue it and if this is a lower figure then they re-mortgage would not proceed and my arrangement fee would NOT be refunded (unless I can stump up the difference in cash!). As it's difficult to price houses (none have been sold similar recently) I'm a bit wary, I think the fact they refuse to refund is unfair, particulalry if I have proceeded based on a "professional's" estimation, I have a letter from the estate agent with his estimated valuation. Any others had a similar experience - I'm really concerned whether to proceed as I can't afford to lose the £799 fee!

I'm applying for the same mortgage and I was told it is one of the three reasons upon which they will refund the money. i.e Adverse valuation. The person dealing with my application, in branch, even rang someone to clarify and from hearing what he asked it was quite clear it would be refunded.

I made it quite clear that I was not prepared to gamble £799 on my own valuation.

manikm

This has been covered.

To recap - HSBC dont allow you to add the product fee onto their products, its an upfront fee. (quite unusual)

Therefore, I got them to put it writing that if the valuation didnt come up to scratch - then i'd get it refunded.

They agreed to this aND surprise surprise, my valuation came in spot on.

fubar4164

We paid £500 up front to guarantee the 0.85% BRT, on the basis that our property was worth £110k (based on 3 EA valuations in the preceeding 2 weeks) and we wanted to borrow 90%, their valuation came through at 100k, and they said that they didn't care what the EA's had said, take their valuation or leave it, but by this time all other similar trackers have been pulled due to the BR cut, so we are having to find the additional £9k to plug the gap.

Unsurprisingly HSBC are dragging their feet on arranging the mortgage, I get the feeling they're hoping we pull out.

Mr._Nice

fubar4164 wrote: »

We paid £500 up front to guarantee the 0.85% BRT, on the basis that our property was worth £110k (based on 3 EA valuations in the preceeding 2 weeks) and we wanted to borrow 90%, their valuation came through at 100k, and they said that they didn't care what the EA's had said, take their valuation or leave it

Estate Agent valuations are pretty worthless and in general over value, in the hope of getting your custom. So it's certainly no surprise that that they didn't care what EA's had to say over that of a chartered surveyor, who was paid to do the valuation and had no personal interest in whether it is higher or lower then you hoped.

manikm

fubar4164 wrote: »

We paid £500 up front to guarantee the 0.85% BRT, on the basis that our property was worth £110k (based on 3 EA valuations in the preceeding 2 weeks) and we wanted to borrow 90%, their valuation came through at 100k, and they said that they didn't care what the EA's had said, take their valuation or leave it, but by this time all other similar trackers have been pulled due to the BR cut, so we are having to find the additional £9k to plug the gap.

Unsurprisingly HSBC are dragging their feet on arranging the mortgage, I get the feeling they're hoping we pull out.

I'm not sure what your point really is. I was actually trying to answer the OP's question based on my recent experience in remortaging to HSBC.

NO, the fee cannot be added (as u know), and HAS to be paid upfront, HSBC do refund the booking fee (if asked nicely - should get this in writing), IF, THEIR, and only THEIR surveyors dont value your property at what you need for the deal.

At the end of the day, its only the lenders surveyor that counts !

TEDDYRUKSPIN

Answer:

They do refund the booking fee if the valuation fails! They do not refund the survey fee as this is done by another company like esurv or direct valuations. These are the only two companies that HSBC will trust.

Thirdly, I would move faster on your 90% LTV as only 8 packages are on the market I believe.

Stop moaning and do it. What are you going to lose? It goes through and you get the mortgage. You don't do it and you get your booking fee back?

Strange people on this board. Strange.

Last and least, they do not allow you to add the booking fee on the mortgage.

Answer: They do not need to give you a letter to confirm that you will obtain this refund. Reason being that they actually don't have to do this. Simple as.

manikm

correct - although re the last point, i just got them to email me that it would be refunded - that was fine with me - i did ask nicely.

londonj_3

in case anyone wondered what happened (see my question above) My HSBC representative said they would not refund the arrangement fee. However I phoned them up and made a "new" application during which they said they WOULD refund it, and they'd send in their own valuers etc. The previous HSBC representative still maintains they wouldn't despite me explaining that her colleague says they would - so I put it down to one bad apple, shame as all the faffing around has delayed my application.