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Admin Fee - Refundable?

Looking for a bit of advice........I made an application for a mortgage with a non-refundable £199 admin fee. I went on holiday and on my return had received a letter from the mortgage company telling me that they could lend me around £5000 less than what I needed as;
a) the house had been undervalued
b) they had changed the LTV from 65% to 50%
The fact is regardless of whether or not they had undervalued the property I could not progress with the mortgage due to them changing the LTV.
My broker has spoken to the mortgage company and they say they will not refund the £199 as they had already carried out the valuation.
I know it was non-refundable, but they did not consult with me over the change in LTV before they did the valuation.
In essence, do I have a chance of getting the money back and how far do i take my issue.
Thanks.

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