Mortgage application fee not returned.

bigO

Hi all,

could do with some help here.

recently we used our mortgage broker to go about getting a remortgage seeing as our 2 year fixed rate deal was finished. After handing over all the appropriate documents we were told we need to pay £500 on our credit card which we would receive back when the new mortgage had completed.

A valuation was done by a surveyor from the bank we were about to borrow the money from. A few weeks go by and the valuation comes back £100k less than the average valuation of four local estate agents. Our broker appeals the banks valuation. They refuse to go any higher. We start receiving mal from a third party working for and on behalf of the bank asking for personal details and confirmation of this and that. We tell them to stop sending mail.

The next piece of correspondence we have is from the bank we were to borrow from. They have offered us 50k less than we need to remortgage, not something we can do.

The bank still has our £500 but we dont have a new mortgage. We were never told that should the mortgage not complete we would not receive our money back. In fact after the hassle of getting all the required documents together we were led to believe that the valuation by the bank was a formality.

I feel completely ripped off.

How do we get our money back?

Any help would be appreciated.

Thanks

Leon_W

Look at the Key Features document you would have been given before proceeding with the mortgage application. In section 8 it will tell you what fees are payable and whether they are refundable or not.

Hope this helps.

bigO

I understand.
I am just doing the maths here. Approximately 180 thousand mortgages were refused this/last year.
£90,000,000 for the banks, no mortgage for me.
Rubbish system for consumer.

dunstonh

We were never told that should the mortgage not complete we would not receive our money back.

Check the key features illustration. That has all the costs detailed in it and does state which are refundable and which are non refundable.

Rubbish system for consumer.

Yes. You would think the bank would be falling over itself to lend you £50,000-£100,000 more than the property is worth. That is clearly sound lending.