Arrangement Fees

ToMonkey

Just tried to arrange a mortgage and been offered one (but much less than I wanted)

Been charged £200 for the privelege of being ripped off. I get the feeling that they never had the intention of lending me the money in the first place.

Is there anything you can do about this. Can you get the money back

I know the banks have lost money but £200 to arrange a mortgage that they then don't offer its scandalous.

_Andy_

If it was a non-refundable fee then you would have know that when you applied. Thus there is no rip off.

dunstonh

Been charged £200 for the privelege of being ripped off. I get the feeling that they never had the intention of lending me the money in the first place.

The application wouldnt have been placed if it was obvious you were going to be declined.

I know the banks have lost money but £200 to arrange a mortgage that they then don't offer its scandalous.

Given the number of hours work, £200 doesnt actually sound that bad. Plus, it would have been stated that it was a non-refundable fee before you agreed to it.

ToMonkey

_Andy_ wrote: »

If it was a non-refundable fee then you would have know that when you applied. Thus there is no rip off.

Its a rip off. Short and simple. Never had to pay for an application fee until now.

Legalised theft.

ToMonkey

dunstonh wrote: »

The application wouldnt have been placed if it was obvious you were going to be declined.

Why not its easy money for the banks.


Given the number of hours work, £200 doesnt actually sound that bad. Plus, it would have been stated that it was a non-refundable fee before you agreed to it.

What number of hours work, compare my house to three smaller ones and say no. It would of took me 5 minutes to do that on rightmove which is all they did.

_Andy_

Seems fairly obvious you resent the idea of the fee full stop. That being the case, why on earth apply for the mortgage in the first place?

nw_man

Just wondering who exactly charged you the fee ?

Rednoseranter

It sounds like they did a valuation on your property - £200 is about the going rate for this service.

TEDDYRUKSPIN

ToMonkey wrote: »

Its a rip off. Short and simple. Never had to pay for an application fee until now.

Legalised theft.

Great word. Legalised theft?

Short and simple.....it's on the books and you pay for it. So why go through the mortgage application if you have been told that you will be paying a non-refundable admin cost?

Actually, like dunstonh says, ' it costs time and money. Average mortgage application costs alot of manpower, faxing, paper, credit check, etc... ' Actually £200 is cheap.

Answer: NO you can't get your money back.

Gorgeous_George

ToMonkey wrote: »

What number of hours work, compare my house to three smaller ones and say no. It would of took me 5 minutes to do that on rightmove which is all they did.

So why didn't you do that (Rightmove search)?

If you did, why did you apply if you knew you didn't meet the LTV requirement?

In the good old days, most applications would have been accepted and so there was no need to recover admin fees upfront. Now that most mortgages are declined, the banks need to charge a fee upfront. This should encourage applicants to apply AFTER they have confirmed (themselves) that they are eligible.

GG

ToMonkey

Based on rightmove I do qualify very easily for the mortgage thats the point.

I paid the fee after going through rightmove and looking at similar houses to mine.

They quoted three comparison houses on the valuation (No one has been out) each one is a far older 3 bed semi.

Mine is a 4 bed with conservatory, dining room etc. There are about 4 more rooms in my house than the ones compared to. Taking one house they compared it too there is a 4 bed semi in that street up at 175k they valued mine vs a 3 bed semi. How can they do that. There is a 2 bed bungalow in the next street up with the people that valued my house at 145k but they vaule my house at 130

I would value mine around 155ish based on others I have seen.

Its not a like for like comparison I am getting thats what is annoying. If they'd said comparison vs another 4 bed yours is lower then fine but its not like for like.

It seems like they never had any intention of giving a fair valuation.

I live and I learn anyhow and it only cost me £200 :mad: