Paid a non-refundable product fee, and now house purchase has fell through

statistic

Hi,

We took out a mortgage with Natwest, which required a £999 non-refundable product fee. This was not paid upfront, but rather added to the mortgage.

The house purchase has fallen through however, due to the vendor we were buying off not being able to complete their purchase.

Where does that leave us in terms of the mortgage and the product fee? Would we still need to pay this legally? I haven't spoken to the bank directly, but the implied tone when my wife called was that they still expected the product fee to be paid.

Any advice on the matter would be much appreciated.

Thanks.

The_J

I believe Natwest reserve the right to take the fee if they offer the mortgage and it doesn't complete.

Dave_Ham

Natwest appear to be making it up as they go along at the moment. I think it may be non-refundable too, but you will have to check with them.

If not refundable I would almost guarantee that you can move this to your new purchase (assuming you want to go through this process again) and just change property details..

Good luck