Urgent help needed!! Non-refundable booking fee...

Zippy79

I would be ever so grateful for some advice to a recent problem i have!

My financial advisor sourced an attractive remortgage deal for me with a certain provider. I had done some research myself on-line and couldn't find a better deal/rate so i went with his suggestion. He got me to sign the application forms and took the relevant details from me. I also wrote a 'booking fee' cheque in respect of £300.

The deal was conditional on my LTV (loan to value). After researching 3 of the recommended websites for valuing property, we both came up with what we thought was a fair and reasonable market value. The appointed valuer came around and said our valuation was way off target......therefore the provider has said i am not entitled to this particular deal as the LTV doesn't match up.

I have decided to just go on to my present lender's SVR for the short term and possibly go on to one of their deals for current customers. I checked to see if the cheque had been cashed....it hasn't. So i decided to stop it. My financial advisor admitted that i could 'blame' him for not informing me the booking fee was non-refundable.

My question is: will the provider start chasing me, threatening court summons etc when (a) it was them who decided not to deal with me - i was happy to, and (b) it was my financial advisor's fault for not warning me the fee was non-refundable. If they do demand the money from me and a new cheque to be issued, am i entitled to not pay....or have i just lost out on £300, very unfairly in my opinion??

Many thanks

silvercar

How about appealing the valuation by showing comparable sold prices?

Zippy79

Regrettably it seems that the website that i relied on are, in fact, as much as £40,000 out....and all comparable sold prices are roughly in line with their valuation. They said the websites don't take into account the fact that the market for new build flats (mine's 3.5 years old) has died completely.

Just don't want to have to pay up the £300 when it was their decision to not go any further with my application and my financial advisor admittedly screwed up. Why should i miss out to the tune of £300?!

Rafter

Zippy, You have effectively paid £300 for a professional valuation, but given you already own the property, it was really for the lenders benefit rather than yours.

I think the lender will probably not pursue you, particularly if you blame to broker for 'miselling' the fact that the booking fee was non-refundable.

R.

_Andy_

The mortgage KFI (key facts illustration) would have stated the fee was non-refundable.

Dan_1976

Cross your fingers! if they come looking ask kthe broker to pay up!

_Andy_

Who is the lender in question here?

Zippy79

The lender is Marsden - now they have turned me down due to the LTV ratio (not my fault), will they still hunt me down for the booking fee?!

Or (as i am hoping) they'll shrug their shoulders and just write off £300...

If they do come hunting, is it worth me putting up a fight or will they just threaten court summons etc?

beecher

'hunt me down' is a bit emotive. If the Key facts made it clear that the fee was non refundable then I don't think you've got a case - yes the broker should've pointed it out, but you should've read the document too. The fact that it was their decision not to deal with you is irrelevant as you were aware of the fact that you needed to fit certain criteria, and now realise that you don't.