Admin fee £999 paid twice!

Rob_Jones_2

Hi all we got a formal offer for our mortgage after much hassle and the seller dropping their sale price to the banks valuation last week, our mortgage advisor rang us up telling us the good news but we got 5% gifted deposit so it left us with 10% so we had to go with a higher rate 7.25% (instead of 6% with the 15%) so i said ok.

within 10 - 15 mins i spoke to my girlfriends father who said we will give you the extra 5% as it will make a massive difference in the repayments so i rang back to tell the advisor we will pay 15% deposit which he said great thats fine.

The next day we got the formal offer for 10% deposit and disregarded it and waited for our 15% offer, we heard nothing for 5 days so i rang the bank myself and they said they will not send the amended formal offer out until we pay another £999 arrangement fee as they say this is a different mortgage offer so justifies the new arrangement fee.

Does anyone agree that this is fair or should i dispute it? the mortgage advisor has called and complained and some manager has sent a request for an "exclusion" or something but we have to wait till tommorow,im not sure why because surely the manager has the discretion to decide on if the exclusion is allowed or not, who else would they ask?

Thanks for reading

Robert_Sterling

Rob_Jones wrote: »

surely the manager has the discretion to decide on if the exclusion is allowed or not, who else would they ask?

A manager of a branch does not have "carte blanche" management of the branch.

opinions4u

Rob_Jones wrote: »

The next day we got the formal offer for 10% deposit and disregarded it and waited for our 15% offer, we heard nothing for 5 days so i rang the bank myself and they said they will not send the amended formal offer out until we pay another £999 arrangement fee as they say this is a different mortgage offer so justifies the new arrangement fee.

Does anyone agree that this is fair or should i dispute it?

Do I think it's fair? No. There is perhaps a case for a modest fee for the change in product detail, perhaps £50-£100.

But if the terms and conditions say it is non-refundable you are totally reliant on thier goodwill.

the mortgage advisor has called and complained and some manager has sent a request for an "exclusion" or something but we have to wait till tommorow

Clearly you need to be patient and wait and see the outcome of this request.

im not sure why because surely the manager has the discretion to decide on if the exclusion is allowed or not, who else would they ask?

A more important manager, presumably.

I think lenders are taking the proverbial by charging product fees for products that are never used by that specific customer. There are costs involved when borrowers switch deals or pull out of deals, so it is not totally unreasonable for a modest administration fee to be charged.

Lenders will claim that they are committed to raising the funds once they are booked, and incur costs as a result. But anybody other than the smallest providers can ensure that these funds are subsequently lent to a different applicant who can pay the appropriate arrangement fee to book them.

Rob_Jones_2

thanks everyone, there excuse was that if a better offer was available to me i could switch and pay the £999 but im not changing due to a "new" better offer im swapping because i have more money now.

the mortgage advisor said he has spoke to the manager of new build mortgages who agreed to an exclusion and passed it to his manager who also agreed but we still had to wait. (i was a little sketchy in my previous post about the managers) thats why i cant understand if two managers agree one of which must be pretty far up the ladder due to the fact he is a manager of a manager i thought he would have the final say

cbrpaul

Product fees , what a wonderful thing ,
But its ok they will add it to your mortgage so you wont notice , honest !!


There was a time when the lender was happy to just have 1.5 to 2x the lending figure back after a number of years ,

ah well !!!

Rob_Jones_2

as it stands they have kindly added £999 onto the mortgage for one of the fees and they want us to pay the other upfront!

cbrpaul

Rob , personally i would not pay the fees twice , £2k is alot of dosh ,

but chances are you will have to pay it somewhere else anyway if you go elsewhere !!! ,

Feel for you m8 !!!

koexelek

Rob_Jones wrote: »

Does anyone agree that this is fair

Of course it isn't.

sadly, they are within their rights to do it though

Rob_Jones_2

thanks everyone,

the bank agreed it was unfair and they have removed the second admin fee this morning

cbrpaul

result , you can book that holiday abroad now then !!!