Am i liable for arragement fee if i pull out?

smilie

Hello

I was planning on purchasing a house. Had a mortgage offer from Halifax with a product arrangement fee of £599. Anyway, the house sale has fallen through and I won't be exchanging.

I assumed that i wouldnt be liable for the arrangement fee, but just looked at the small print and it says "Product Arrangement Fee which was payable on this application is not refundable. You have asked for this fee to be added to the mortgage".

Does that mean that I'm liable for it even if I no longer need this mortgage?

mahoneyr

My mortgage broker advised me to add the arrangement fee on to the mortgage - that way if I never completed I wouldn't have to pay it. That particular purchase fell through and I never heard anything else about it.

Doozergirl

If you don't take out the product, you don't pay the arrangement fee. You'll lose any valuation fee (which you'll have already paid if there was one)

Poppycat

Thats what we are doing although I wasnt told at the time by the broker.

mahoneyr wrote:

My mortgage broker advised me to add the arrangement fee on to the mortgage - that way if I never completed I wouldn't have to pay it. That particular purchase fell through and I never heard anything else about it.