Northern Rock - Cheeky Swines

BarmyBubba

I applied for a mortgage when I first started looking into buying my first home.

My broker found me a deal with Northern Rock and I was happy to proceed. It wasnt until they were ready to do the valuation on the house and final credit checks that they decided I was too high a risk to give a mortgage to.

By this point I had paid the mortgage application fee.

Anyway, when I was declined the mortgage, my broker advised me to cancel the application fee cheque or else they would bank it and struggle to get the cash back.

I have now had two letters from Northern Rock demanding payment of £75 for the application. They are asking me to pay money for a product they wouldnt offer me.

Am I obliged to pay it or obliged to tell them where to stick it?

ratcrazy

we are buying a house and our mortgage is through northern rock but we didn't put an offer in for a house until we were mortgage approved. We paid fees to northern rock so I suppose they are the same fees they are wanting from you but shouldn't the broker have done a credit check first

BarmyBubba

Only the mortgage company can do the credit checks because only they have the authority to delve into your credit history.

My broker did assess my financial background and said I would be fine, but each mortgage company varies on how they reach their decision on whether someone is worthy of their cash.

I did receive a Mortgage in Principle which is why I made an offer on a property. But when they did their final credit check I failed.

regularsaver1

I can't believe a broker has suggested cancelling a cheque!!!!

sounds dodgy to me

BarmyBubba

I got in touch with him yesterday even though I ended up getting a mortgage on my own in the end without a broker.

He is getting in touch with Northern Rock to find out what is happening. But is it right that I should be paying them for a product/service they arent giving me?

regularsaver1

I'm not sure - but the broker shouldn't tell you to cancel a cheque as it can only come back on you

lynzpower

BarmyBubba wrote:

I got in touch with him yesterday even though I ended up getting a mortgage on my own in the end without a broker.

He is getting in touch with Northern Rock to find out what is happening. But is it right that I should be paying them for a product/service they arent giving me?

I would have thought a quick phone call to trading standards or to the FSA shouold resolve this, I cant see why you would pay a fee for arrangement when it hasnt been arranged.

I had this with the halifax, they said I could have thier mortgage then changed thier mind, and I got the fees back, albeit it did take a couple of weeks and loads of calls from my broker