Where do I stand? Nationwide Mortgage

coldavies1

I am a first time buyer and currently going through a mortgage application with Nationwide through a broker based at the estate agents were purchasing the property through (I regret using them but live and learn).

In one of our initial meetings, I was given a breakdown of fees and costs etc. and one of which was a non refundable mortgage admin fee payable on completion after exchange of contracts with the vendor. Not questioning that but I heard from my solicitor recently the vendor is having an issue with her mortgage I won't go into detail about but it has basically delayed signing the contracts and is still yet to happen. The estate agents have refused to tell me anything about what was going on but I was annoyed to see that the mortgage admin fee had been taken from my account before I've even had a whiff of any contracts. It's frustrating because I'm still paying rent for the property I'm in and it's looking like I'm going to be paying another months rent due to this delay. As a first time buyer I'm at a bit of a loss of how to deal with the situation but it's frustrating being told by the estate agents the exchange of contracts was going to happen on such and such a date and then I get word from my solicitor that its out the window costing me another months rent and the fact I've payed a mortgage admin fee not due yet. Where do I stand and how can I handle the situation to speed things up?

CloudCuckooLand

Stop listening to Estate Agents. They are untrained salespersons.

They can make guesses about timing, and act as middlemen for the chain of buyers/sellers. But they do not, in any way shape or form, influence or dicate the timing of complex legal documentation. Speak to your solicitor about the timing of paperwork, exchange etc.

betmunch

What does it say in your KFI about that fee?

Nationwide charge a £99 booking fee payable on application and non-refundable, could this be the fee you mean?

Let_Us_See

Forget the estate agent as they work on behalf of the vendor. Instead address all your queries to the mortgage adviser and threaten to report him if he does not advise you of your current position.

Was the fee a non-refundable lender's admin fee payable on application? If so, then you will have to accept it as a legitimate 'application' cost - although you state it should only become payable on completion???

Check the Initial Disclosure Docment (IDD), also in the Key Features Illustration (KFI), that the mortgage adviser is legally bound to provide at the start of the advice chain, as this will not only detail the amount of fees, but also when they become payable. If incorrect - start complaining.

It is due to such conflict of interest that I would never recommend you use an 'in-house' adviser of the agent selling the property.

coldavies1

It has been the mortgage adviser that has been refusing to tell me anything. There were some fees to pay when we applied, which were the brokers/advisers fees that weren't made particularly clear in the initial meetings and then there was a admin fee of 149 on exchange of contracts and not before which has been taken.

I realise I've probably been ripped off but its a bit late now :-(

Country wide mortgages are the company in question anyway...

Let_Us_See

I do not believe it is a case of being ripped off, it just appears that you did not read and understand either the IDD or KFI? These are important documents which are given to you so that you can be fully aware of the terms of the mortgage including costs and when they are payable. Unless you are being charged fees that were not contained in either the IDD or KFI, then ignorance in not an excuse, as you should have fully understood these before committing yourself to the application.

Unfortunately, as in any other industry, there are both good and bad mortgage advisers, and yours appears to be the latter. Personally, I would go to his office and demand answers, even if it means embarassing the adviser.

dunstonh

Country wide mortgages are the company in question anyway...

There charges are published and the £149 is pretty clear. Even on their website they clearly say on the home page "Whilst we do not charge for our advice, please note that there will be a £149 administration fee which is payable upon completion of your mortgage". I believe you will find it in their terms of business as well as the mortgage key facts illustration.

Whilst I take issue with how they word it (as clearly it is a fee for advice as advice is the product that the person is buying), they don't hide it.

I realise I've probably been ripped off but its a bit late now :-(

If it wasnt published and printed on their documents then yes you would have been. However, as it is printed and published then its difficult to see how you could be ripped off. The most vital document of all with mortgages is the KFI. It shows the costs and it would have been on there. If it wasnt, then you have a case to complain. If it was then did you not read the document?

coldavies1

I'm not questioning the 149 admin fee. I knew about it but its the fact I haven't completed yet and I've been charged it when it clearly states it is taken AFTER completion.

I'm also sure I've been charged an advice fee which doesn't line up with what is said on the site. I need to check that when I get home from work.