Mortgage Fee Not Reimbursed

totty2011

Hi - new to the forums! I have applied for a First Direct mortgage and paid the £99 up front fee. However, the valuation is less than we expected, and our LTV was 78% and as the mortgage required a LTV of 75% First Direct have declined to take our application further. As they are backing out, we feel we should be entitled to our fee back, but are we being unreasonable? Our understanding upon agreeing to proceed was that the fee was non refundable should we decide not to proceed.

Advice would be very much appreciated!

opinions4u

If your Key Facts document says the fee is non-refundable then you are not entitled to have it back.

First Direct have declined to lend you 78% of the property value, but have they declined to lend you 75%? Or are you simply unwilling / unable to increase your deposit?

dunstonh

taken from the details:

This is a non-refundable fee charged on some mortgages to secure a particular mortgage deal. Once the Booking Fee has been paid, your chosen rate will be available for 6 months from the date of the initial Offer Document. For our Fixed Rate Mortgages, the Booking Fee is payable for every £400,000 of lending or part thereof.

WellKnownSid

There will be a whole list of reasons as to when the fee isn't refundable.

Have they not given you the option of putting in the extra 3%? Or have you chosen not to pay it?