Mortgage Booking Fee's - A query?

Dead_Mike

Hi,
Hoping someone can advise what my chances are of getting my 'booking fee' returned?
My current fixed rate had expired on my mortgage so I've been looking to move. My mortgage broker found me a good deal with the Coventry. There was a £200 booking fee which I pad in advance.

We were advised that they'd need to do a valuation on the property to determine whether they'd lend me the money. My salary didn't matter, they'd only lend 75% of their preceived value of the property. The valuation of the property came in at £115k, therefore they made an offer of £86,250. I needed £92,000. I'm assuming the valuation came via a 'drive past' survey as a surveyor never made an appiontment.
As the offer from the Coventry wasn't sufficient we found another mortgage from Santander, they send round a surveyor who valued the property at £125k, the deal was accepted...happy days.
My argument is that what's stopping the Coventry from taking people's £200, making low valuations/low offers that wont cover the outstanding amounts & just keeping everyone's booking fee?

VIGILANT22

Coventry booking fee is payable upfront and non refundable

If they did as yr suggesting they wouldn't lend to anyone!

betmunch

The Booking fee isnt for the valuation, its for the work invloved with the application, as Vigilant22 says is non-refundable.

The valuation is not done by the Coventry, rather it is paid for by the Coventry but done by a Surveyor. If the Surveyor values the property lower than you do that is hard cheese I am afraid.

luckyfool

If it wasn't a full internal inspection you could have potentially challenged the figure with 3 recent comparable "sold" prices but would probably have been on a hiding to nothing anyway. That's the disadvantage of an upfront non-refundable booking fee.

happybroker

It is indeed "hard cheese" as it were but I can see your frustration.

I think the disparity between what one surveyor feel a property is worth when compared to another is a massive issue at the moment, I am constantly amazed at what I see, sometimes they can vary by 30% or more from surveyor to surveyor.

Is the 2nd valuation one that you paid for or Abbey? If the former then you should be able to get a copy and go back to Coventry with it to appeal if their's is a better deal.

luckyfool

Sounds like it was a remortgage, in which case it will be an Abbey instructed and paid for valuation report.

dunstonh

My argument is that what's stopping the Coventry from taking people's £200, making low valuations/low offers that wont cover the outstanding amounts & just keeping everyone's booking fee?

Because £200 fee when broken down into cost/profit wouldnt keep them open for business.

The fee is disclosed as non refundable and that is what it is.

Dead_Mike

Got my money back :beer: