Paying mortgage arrangement fees

mk1mini

In 2003 we tried to buy a house and paid a had a mortgage arrangement fee of £650 up front. We lost this fee when our buyer pullled out causing the chain to break down and us to lose the house the mortgage was agreed on.

I now realise we could have had this fee incorporated into the mortgage and if we lost the house we wouldn't have to have paid anything :rolleyes: . We were not advised of this. I am thinking of trying to claim this money back from the building society in question. Anyone think we have a chance? :think:

Thanks for reading and for any replies

Edit sorry my son is logged and I have posted under his name so please take this into account if reading all his posts

MortgageMamma

No I don't think you have a chance. The arrangement fee is to cover the building society or banks costs for arrangeing the mortgage, some of which is done prior to completion - so why shouldnt they be paid for what they have done for you? Its not the banks fault you didnt complete after all!

Next time add the fee to the loan, although be careful to check with the company in question whether they will bill you for it if you dont complete, as some lenders are wising up to this trick, royal bank of scotland being one of them!