Mortgage Arrangment fee's

black251cat

I applied for a further advance with my current mortgage lender Mortgage Express in August 2008. They declined the loan but upon receipt of my mortgage statement i have discovered that they charged me £199 just for considering it!- This seems really unfair - is it legal does anyone know?? Thanks

_Andy_

If the fee was stated as non-refundable then there is nothing unfair or legal about it.

dunstonh

This seems really unfair

Not really. There is some work required in advance and often with certain deals the money has to be earmarked for you in case they run out. If the deal then doesnt proceed then the work is still done to a point and they may not be able to lend that chunk of money to someone else.

Plus, its not as if you are not told before you apply. It would have stated non-refundable application fee.

Its a pain but the clue is there when it states non-refundable.

ToMonkey

I've said in another thread, legalised theft. I disagree that you should be charged simply for applying for a mortgage.

However in my case its my fault for applying so thats it. I believe my case was unfairly worked but again there is very little right of appeal.

Although I may set up a company advertising mortgages with an application fee then simply refuse them all. After all its perfectly legal.

opinions4u

ToMonkey wrote: »

I disagree that you should be charged simply for applying for a mortgage.

Some providers will charge. Some won't. That's their choice. If you have not been clearly advised of the fee up front then I sympathise. If they have clearly stated "we charge a fee for assessing your application and you don't get it back if we decline you" then you paid your money, took the chance. Your call.

When you add up the time, systems, compliance and buildings costs that a mortgage lender has to maintain, £199 probably just about breaks even for them.

I believe my case was unfairly worked but again there is very little right of appeal.

In what way? Expanding on this may allow readers to see if you have been hard done to.

Although I may set up a company advertising mortgages with an application fee then simply refuse them all. After all its perfectly legal.

You could try getting the appropriate FSA authorisation and necessary consumer credit licences. It may not be as straight forward as you think.

If you saw a solicitor, you'd get a bill for their time and advice. If you needed an accountant, they'd charge you. If a plumber gets called out to your house, you pay them for the call out.

Why should using the time of a mortgage lender be free?

We're lucky that in many cases they are free. But there is no reason why it should have to be that way.