booking fee what if declined?

iamchrisli

I had few quotes from differenct lenders right now, they are all fee based products.

They will charge me booking fee when I make the formal application.

I want to know whether I will get my booking fee back (or partically) if the application be turned down?

I check the T&C, it says only I dont get money back if I dont take the offer.

Any experience?

Thanks

Old_iron_balls

very good question - id like to know the answer to this aswell.
we saw Nationwide on Saturday, they will lend us just enough to buy in the area we want too.
However my credit rating is not what id call brilliant, so i didnt want to take the plunge and fully apply.
was also the first lender we had been to see.
were going to see an broker before we do anything else.

MortgageMamma

depends on the lender and their policy but generally they will refund under such circumstances.

Have you not applied for an agreement in principle (mortgage promise) from any of the lenders?

Why are you unsure if they will decline your application? I think the best thing you could do is either speak to a whole of market mortgage intermediary who can ensure the mortgage is suitable for your needs. Or if you are really determined to do it yourself call the lenders and get answers. make sure you record the date, time and nature of the call as well as who you spoke to. Ask them if possible to evidence this in writing to you.

AndrewSmith

This is a good argument for asking the lender to add the booking/arrangement fees to the mortgage at the time of application.

By doing this they are not payable till completion thus if you are turned down you have not paid the fees out.

You can then always opt to pay them in full at completion thus not actually adding them to the mortgage, but at least then you will only pay the fee once you are guaranteed that the loan will go through.

This does not usually apply to the valuation/survey fee. This will be returned unless the surveyor has already been instructed.

Andy

TangentMan

Andrew Smith offers sage advice regarding adding the fee to the loan.

As a general rule if they tell you it is non-refundable they mean it. If they have processed your application and it all goes south, they have still done work and incurred expense which is what the fee is there for.

As mortgagemomma suggests, go and have an interview and tell them everything. If you do have credit problems as a general rule the advisor will be able to tell you how "bad" they are in their companies eyes.