Arrangement fee rip off

lestat_2

Hi, Could someone give me some advice. I had recieved a mortgage offer from RBS but as the house I was purchasing fell through I no longer require the mortgage. However RBS want me to pay the £995 arrangement fee. I personally feel this is a complete rip off and feel they are getting money for nothing. Any advice please.

nervousftb_3

unfortunately, an arrangement fee is just that - a fee for arranging a mortgage. as you have received a mortgage offer, then they have done all the work required for them to charge this fee. it may seem unfair to you now that the property has fallen through, but unfortunately that is how the system works, and although you can try and get away without paying the fee i don't think they will let you off!

sorry i can't give the respone you want, and of course there is always the chance that i may be wrong...

dunstonh

personally feel this is a complete rip off and feel they are getting money for nothing.

If that was a concern of yours then why did you choose a lender that has a non-refundable application charge?

Some deals have limited financing and often the non-refundable charges appear on those. When you apply for the mortgage, the funds are allocated to you from the available pot and when the money is gone, the deal is pulled. If you dont complete the lender still has the liability for having those funds and having to make provision to either settle back to the investors at penalty or try and get the money lent to someone else which they may or may not be able to do at the same terms.

Some lenders will allow the arrangement fee to be ported to a revised deal when provided you arrange it again within a short period after it fell through. Otherwise you are relying on the goodwill of the lender to refund the money to you.

Trollfever

Caveat Emptor.

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