Arrangment/booking fee with NatWest

vlabla

I have applied to NatWest 5y fixed mortgage in June. Everything was fine and they sent me an offer at the end of July. In the meantime, my existing lender (NR) offered me the transfer to Lloyds (C&G) with much better valuation and consequently the rate was also much better.

I have never signed mortgage application with NatWest nor any other document. They told me that £999 application fee can be paid on completion or included in the loan. I called to tell them that I am cancelling the deal and they told me that I should pay the arrangement fee according to their Mortgage conditions.

In the letter from their solicitors it is clearly said that I will be legally binded to the Offer and the Conditions once I SIGN the documents.

Anyone have some advice or have been in a similar positon. Thanks in advance.

Toughluck

Thread on here yesterday about this. I don't know but I think they are clawing back the money they have spent on you already.

dunstonh

Did you complete an application?

Signature is irrelevant. Its the completion of the application that matters. With online/direct submission common place there is no need to get a signature at point of sale. That is why many of the lenders call it an application fee.

vlabla

I have applied over the phone and they sent me the Mortgage offer to sign and send back to their solicitors. I never signed. I understand that some lenders take booking fees upfront and arrangment fees you can include in the mortgage or pay on completion. I don't mind how they call it but they didn't charge me upfront and I don't see that I am legally binded to their terms and conditions.

Toughluck

I personally think you may have gone to far in this. Just becasue a better deal has come out during your process doesn't mean that you can pull out willy nilly. If every man and his dog did this many many lenders would waste many man hours etc on phony applications etc.

Also be careful about "I'm not legally bound etc", this is a mortgage not a mobile phone or HP contract and I suggest you go back through the small print.

dunstonh

I don't mind how they call it but they didn't charge me upfront and I don't see that I am legally binded to their terms and conditions.

You applied for the product. They did all the work for that and issued the final offer letter. You dont need to sign anything to enter in to a contract.

vlabla

I understand what you say and I am not taking lightly the whole process. I didn't want to cheat anyone. It is not easy beign NR customer these days.

I see that many banks take upfront fees but they are much lower than 999. They know the risk but also they want to be competitive.

Anyway, in my Offer of Loan it says:

This fee is paid at the time the mortgage is arranged. This fee is non-refundable. This fee has been added to the mortgage

Also at the beginnig of the document it says:

You should take independent legal advice before signing and sign only if you want to be legally bound.

What would you do if you are in the same position?

Locoblade

Although I agree with whats been said about the ethics of pulling out at the last minute and costing the mortgage company money / wasting their time, if it does indeed say....

vlabla wrote: »

In the letter from their solicitors it is clearly said that I will be legally binded to the Offer and the Conditions once I SIGN the documents.

...then I'd have thought the OP had a case? If NatWest have indeed put that in their T's and C's then they should abide by it surely?

Toughluck

What mortgage loan size do you have?

Worst case scenrio is that you at least have got away from Rock and a mortgage with Natwest. Hundreds of thousands of people are in a worst predicimant than you and some cannot even get a mortgage these days. OK better seems to be on the market now but in hindsight you probably had a good deal when you signed up.

Rates reduced when I applied for my re-mortgage but stayed where I was as I could not be bothered to change and it would have only reduced my payments by £14 a month.......and I work in the industry.

vlabla

Mortgage is on £223,000.00. I didn't get mortgage very easy as some banks thought that my LTV is over 90% and my new deal puts me on 78% with the rate reduction of 0.39% compared to Natwest. Every pound is important to me and I don't feel I have done something unethical here.
There is no need to talk about ethics too much as both sides (banks and customers) are fighting for their lives.
I will pay £999 if someone can explain to me that I have obligation to do that. I have impression that it is a bit of a grey zone. I would like to know who can give me the best advice. Solicitor? Should I go and make a complaint to Natwest?

beecher

vlabla wrote: »

There is no need to talk about ethics too much as both sides (banks and customers) are fighting for their lives.

I think that's a little bit extreme to be honest - most people with mortgages aren't really in that position.

Have you phoned Natwest to query paying the fee?