Arrangment fee suddenly gone up

Poppycat

Hi guys a little stresed

I have been waiting over 3 weeks for a motgage offer via broker for first national.

I have had to submit on 2 occasions additional evidence of income.

I chased it up today and was told by the brokers call centre that the competion fee has gone up from £99 to £599 on Nov 17th. No one ever told us this even when I spoke on Thursday to call center about the mortgage offer, I have no idea what it is but we did apply before the 17th.

I was led to beleive that the mortgage being on 2 years fixed, the mortgage advisor would ring up before 2 years up and change to a better deal, is this £599 what we would have to pay then?

toonfish

Poppycat wrote:

Hi guys a little stresed

I have been waiting over 3 weeks for a motgage offer via broker for first national.

I have had to submit on 2 occasions additional evidence of income.

I chased it up today and was told by the brokers call centre that the competion fee has gone up from £99 to £599 on Nov 17th. No one ever told us this even when I spoke on Thursday to call center about the mortgage offer, I have no idea what it is but we did apply before the 17th.

I was led to beleive that the mortgage being on 2 years fixed, the mortgage advisor would ring up before 2 years up and change to a better deal, is this £599 what we would have to pay then?

no, it's the fee you'll pay when the mortgage completes. It should be detailed on the KFI.

Poppycat

I just spoke to broker, he thinks its the arrangement fee and it was £99 so in process of applying and submitting income its gone up £500.

Even though I apllied on 14th and it went on up 17th, he said some lender and a tear system when you have to go thoigh hoops like we did on evidence of income before we can actually get the mortgage

toonfish

if you submitted the full application before the fee increased you should at least try to get them to honour the original cost. It's worth a letter at least.

Poppycat

Thansk toonfish, thats what I thought. Broker wasnt even aware of it until I range today. The brokers call centre were the first who told me today, they havent any time time previously mentioned this even when I spoke to them last Thursday.

Broker said that it may well be the delayed and thus not actually gone after the date the fee went up because of various questions they later asked on our incomes.

MarkyMarkD

If the offer has been issued, the fee contained in it is normally binding on the lender.

If the application has been submitted to the lender then quite often the product (including its fee) will be held for you until the application is sorted out and an offer formally issued.

But if the broker is packaging the case (in other words, gathering necessary information like income etc.) for the lender, and they hadn't done so before the product was withdrawn, I can see how they would (potentially) lose the product for you. If it is their delay, rather than the lender's, which caused this to happen then either they should seek to get the lender to let you have the product with the £99 fee or they should reimburse the difference, IMHO.

Leon_W

First National reduced their completion fee by £500 as a special offer.

Now, the information I had was that the applications had to be in by 17th Nov but they were carefull with this saying that the application had to be Fully Packaged. That means All the relevant documents enclosed. It was also only available for non conforming loans up to 85% LTV.

If the broker sent all that was requested by the lender at the time of application then I really do think they should honour the offer of £500 pounds off, even if they then subsequently asked for further evidence of income.

It seems a little off to turn round later and ask for further proof of income and also whack the £500 back on.

If it were me I would complain and ask the broker to do the same.

Poppycat

We submitted out details to the broker on 14th November. He gave us a copy it says on the copy

Loan amount: £59,950 + £99.00 for fees that will be added to the loan, these and additional fees that you need to pay are in section 8. (see below)

Type of mortgage: Repayment
Desposit: £90,000
Purchase prce of valuation: £149,950

Section 8

Arrangement fee: £99.00
Sealing/final repayment fee: £200

I must add I only be told that its now £599 on the phone I dont have this in writing, but I think its unfair that I now bene told this when I have already paid £280 valuation fee through mortgage

Leon_W

Was the application submitted on that date ?

The key features you have appear to be correct but these have to be issued BEFORE any application is submitted so there is usually a delay between key features date and app date.

The issue is, was the application submitted in time , and if it was, are they trying to say that because they had to seek further verification of income that, in their eyes, the case was not fully packaged.

Answers i'm afraid that only your broker and First National will know.

I would maintain though that if the application WAS submitted in time and all they required was FURTHER verification of income then they should honour the £99 deal.

Poppycat

Thanks for the help. I am unsure what date the application was submitted. When we applied to the mortgage we took all evidence of income etc. The broker said to us at the time with regard to income that he will send off the minimum and if they ask for more he wills end it off. They later did ask for my original income and then last week a copy of working family tax credits.

I spoke to call centre just now and apparently we have to speak to our broker which early today he knew nothing of the bump in arrangement fee, but when I ask them about the mortgage offer was the increase the only thing that is preventing the mortgage, they replied and said yes.

I just spoke to FSA and they think its unfair from what I told them, and that they send me a form to complain to ombudsman

I don't want to cause a stink yet and I don't actually blame the broker. I just feel this increase is unjust and basically as we shelled out now for valuation and it puts us in a bad position to find another mortgage.

silvercar

Poppycat wrote:

I just spoke to FSA and they think its unfair from what I told them, and that they send me a form to complain to ombudsman

I don't want to cause a stink yet and I don't actually blame the broker. I just feel this increase is unjust and basically as we shelled out now for valuation and it puts us in a bad position to find another mortgage.

So the best bet may be to continue with the application and pay the higher fee. Then complain to the ombudsman and hope they find in your favour and order a fee refund. I would think you would need to follow the internal complaint procedure first. Whichever, don't let this delay cause you to lose the property.

Poppycat wrote:

The broker said to us at the time with regard to income that he will send off the minimum and if they ask for more he wills end it off. They later did ask for my original income and then last week a copy of working family tax credits.

So the broker's decision to send of the minimum has caused this problem.