Reclaiming mortgage arrangement fee

Matt.D

Just testing the waters to see if there's any possibility of reclaiming a £999 mortgage arrangement fee paid to HSBC 4 months ago. The story goes that we were buying a flat but we pulled out of the sale when several issues came to light about the condition of the property and ownership of the development.
Because it was us who pulled out of the sale and not HSBC withdrawing the mortgage offer, the fee is none refundable. However the arrangment fee supposedly has a shelf life of six months, but it's looking increasingly unlikely that we're going to find a new property in that time (we have under 2 months).

So my question is, can is the none-refundable, be refundable? If I make a fuss can I possibly get my money back or shall I just draw a line under it and chalk it up to experience?

Wutang_2

Matt.D wrote: »

So my question is, can is the none-refundable, be refundable? If I make a fuss can I possibly get my money back or shall I just draw a line under it and chalk it up to experience?

You can give it a go but I think the 'non-refundable fee' has a clue in there somewhere...

maninthestreet

'non-refundable' - seems clear to me.

_Andy_

It's frustrating but they won't refund it. As stated above, that's the point of it being non-refundable.

dunstonh

Because it was us who pulled out of the sale and not HSBC withdrawing the mortgage offer, the fee is none refundable. However the arrangment fee supposedly has a shelf life of six months, but it's looking increasingly unlikely that we're going to find a new property in that time (we have under 2 months).

Many banks will roll over the fee to a new deal providing you dont leave it too long. You should ask them.

Senior_Paper_Monitor

I don't see that one being successful - you can obviously try, but pretty certain you are wasting your time.

Just to clarify - Dunstonh's comment that "many banks will roll over the fee" is perfectly valid (although I would suggest 'some' rather than 'many') but the OP was was suggesting a refund not a roll over - and my feedback on HSBC is they are not the most lenient on their rules (but 'nothing ventured, nothing gained' is the main point of my post)

Matt.D

Thank you for the replies, especially dunstonh. I do understand what the none-refundable part means, but it doesn't hurt to test the ridgedy of lenders rules and policies. See no further than the reclaiming unfair bank charges. In this case I think I’ll forget about it and take the hit.

Wh05apk

With most lenders this fee is not non-refundable, however I always recommend adding it to the mortgage, as there is then no issue about refunding it if you withdraw as you haven't paid it. Woolwich are the only other lender charging a "withdrawal" fee albeit £150.

TrickyDicky

We had one house purchase collapse, and we used HSBC. They were happy for us to keep the offer on a 2nd property and pay no new fee as long as you were ready for drawdown within 6 months of the origional offer. You will have to pay for a new valuation though.