can mortgage lenders take mortgage arrangement fee then refuse mortgage?

fatfei

can mortgage lenders take the mortgage arrangement fee then refuse mortgage after aceptance in principle?

Hi all,

Got a first time mortgage in principle having laid down 45% deposit, had proof of this, income and checked my credit score which was very good and all they seem to do is drag their heels. They seem to want every single bit of unnecessary and irrelevant piece of paper yet request them weeks apart. I would instantly send any document requested to speed things up as the house was ready to move into yet it would take over 2 weeks of chasing them to find out they hadn't actually even processed it. Mine was an open and shut case i had a large deposit and could easily prove my income yet i still have all this hassle and delays, i did also note they wasn't so slow in taking their outrageous mortgage fee which was taken the day i arranged the mortgage with the broker!

I am now being told its gone to head office which they randomly do to customers i am told and should be dealt with within a few days. I have already been accepted in principle coming up to two months ago now!!!

Now i am wondering what happens if they turn round and say they are not going to give me the mortgage after all this, can they mess you around like this at your own expense and time? I will lose a house a huge mortgage fee and solicitor fees solely because of the mortgage lender if they at this point two months down the line say they wont lend the money. If this does happen, do i have any options and can i claim the money back from them?

thanks

fei

Senior_Paper_Monitor

... and the lender is ?

What did the Keyfacts say about the fee and its refund qualification ?

Most will refund in the circumstances you describe incidentally (some exceptions).

fatfei

looking at other forums many others are complaining of the time they take.

Key facts say under fees to pay booking fee is non refundable. In fact it says everything non refundable.

I think if it they did refuse me a mortgage although i cant see why they would, id have to report this to financial services authority as this would be like robbery.

dunstonh

Key facts say under fees to pay booking fee is non refundable. In fact it says everything non refundable.

Non refundable generally means non refundable. That is why they call it non-refundable.

id have to report this to financial services authority as this would be like robbery.

FSA wouldnt take any interest and would just forward your complaint on to Nationwide.

Non-refundable fees are allowed. They are also largely avoidable a lot of the time.

opinions4u

If you don't like a lender who's fees are non-refundable, don't use them.

If you agree to do something where the fee is non-refundable, don't be surprised if they err ... don't refund it!

Report it to the FSA by all means. They don't deal with complaints. If you report it to the FOS (Ombudsman) they'll back the lender as long as the lender has clearly made you aware that fees are non-refundable.

Which they have.

fatfei

Actually I wasn't aware and couldn't be aware of this until the key facts come down as I went through a broker and this documentation didn't come until after that. And as I've not paid any of the non refundable fees yet I don't really care. The only thing I have paid is the mortgage application fee that is not listed as "non refundable "

beecher2

fatfei wrote: »

Actually I wasn't aware and couldn't be aware of this until the key facts come down as I went through a broker and this documentation didn't come until after that. And as I've not paid any of the non refundable fees yet I don't really care. The only thing I have paid is the mortgage application fee that is not listed as "non refundable "

Surely you didn't pay the fee before you saw the key facts? Didn't the broker explain to you that the fees were non refundable?

Can't see how you have a leg to stand on - it is certainly not robbery when it is in the Key Facts. Next time make sure you read them before agreeing to anything.

fatfei

I had to pay before the keyfacts were sent. And the fee they took was not the initial fee under £100 as the broker said on the phone. I can't proof it As the broker was all on the phone there is not much I could do. Maybe I was naive to think they would apply by a code of conduct but it was my first mortgage. I am sure it wont be the last time I am screwed by a bank. As I said though before it doesn't say non refundable

MrsManda

fatfei wrote: »

I had to pay before the keyfacts were sent. And the fee they took was not the initial fee under £100 as the broker said on the phone. I can't proof it As the broker was all on the phone there is not much I could do. Maybe I was naive to think they would apply by a code of conduct but it was my first mortgage. I am sure it wont be the last time I am screwed by a bank. As I said though before it doesn't say non refundable

This may be a silly question but by broker do you mean someone who looks at all mortgages available and advises you or do you mean a mortgage advisor at Nationwide?

iceage3

On the site it says

booking fee/valuation fee non refundable

product fee nothing

i was going for advance ,couple months ago and got product fee back(didnt do loan)

make sure your advisor isnt having you on or ring nationwide.

payless

Did you pay more than valuation + £99 booking fee ?

Did you process via broker or take advice from broker and then go direct ?