reclaim unfair mortgage fee!

MrsAowM

My husband and I recently applied for a mortgage, through our mortgage adviser, with Coventry. We chose coventry as it was the cheapest repayments and the lowest fees. Only £199 valuation fee. We were approved. However when the letter arrived confirming our offer the offer had changed. The rate had gone up significantly and we were also told that we would have to pay further fees. The reason- we were not existing coventry customers.
The offer that we had seen did not state this when we searched it via our adviser or (obviously) we would not have applied. I think this is false advertising- they should not have approved us for that offer knowing we were not exisiting customers. We did not proceed with the offer. The £199 fee was meant for the valuation which did not happen therefore I think along with the previous points made, I feel that we are entitled to our money back. Please could anyone shed any light on this matter and perhaps advise us on steps to take to reclaim the money.

Thank you!

GMS

Broker should refund the fee as it is their error.

£199 is a non refundable booking fee. Adviser should check against criteria pre application. If it was a mortgage for existing customers only then they shouldnt have applied for it

Thrugelmir

£199 is the booking fee on application.

Most of Coventry's products carry a £800 arrangement fee as well.

The website is very clear.

ACG

Coventry charge a £199 booking fee, this is on top of any fees for valuations etc. If its a remortgage, the valuation is usually thrown in free of charge, as with most lenders. If its a purchase then its usually an additional fee on top.

When did you apply? Usually when you make an application AND pay the booking fee, you secure that rate for a period of time. If however you make changes and the rate is no longer available then you may have to go with whatever is available at the time or go elsewhere.

Im a bit confused by:

We were approved. However when the letter arrived confirming our offer the offer had changed. The rate had gone up significantly and we were also told that we would have to pay further fees.

Could you just expand on it a little bit and be a little more precise?

Also do you have a Key Facts document? This will have a section that explains exactly what fees will be charged and whether or not they are refundable.

MrsAowM

Hi thanks for the quick response. We applied via our adviser and it did not disclaim the 'existing customer' restriction which seems unfair!

Any advice on how you would get the ball rolling?

MrsAowM

Hi,

The rate that we had been approved online was lower than what they confirmed via letter. The rate increased and we were asked to pay another £400 fee (can't remember off the top of my head what for) will dig out the letters. Sorry we are in the process of moving so there are a lot of figures rolling around in my head!

We are first time buyers not re-mortgagers!

I just feel that if they had disclaimed that the rate and fee were for existing customers only then we would not have applied in the first place. It seems really black and white to me yet I'm not as savvy as some when it comes to mortgage companies.

itzmee

Your post is confusing. You say a valuation was not carried out but you say you had an offer from Coventry - the offer would not be produced without a valuation! There is usually no valuation fee with Coventry, the £199 fee is a booking fee which is non-refundable.

Coventry products are available to new and existing customers, unless you chose a 90% first time buyers members only product, however they are now offering 90% to new borrowers.

MrsAowM

It probably is confusing! We are currently moving so heads all over the place! I apologise.
It was a booking fee but when talking to them later they said it was to cover the valuation! We are first time buyers with a 10% deposit. I can't stress enough that Coventry did not disclaim the existing customer restriction when applying. Had they have done so we would quite obviously understand and hold our hands up to our mistake. They didn't, then offered us a mortgage with a much higher rate, an additional £400 fee. It seems unfair to me. We would not have applied had we have known.

Thrugelmir

MrsAowM wrote: »

Hi thanks for the quick response. We applied via our adviser and it did not disclaim the 'existing customer' restriction which seems unfair!

Any advice on how you would get the ball rolling?

What should they disclaim?

Existing members per the website.

Apart from the usual costs associated with buying a new property, you will also have to pay a booking fee and you may have to pay an arrangement fee, if you take out a new mortgage scheme. These fees, if applicable, will be detailed in your Key Facts Illustration

itzmee

MrsAowM wrote: »

It probably is confusing! We are currently moving so heads all over the place! I apologise.
It was a booking fee but when talking to them later they said it was to cover the valuation! We are first time buyers with a 10% deposit. I can't stress enough that Coventry did not disclaim the existing customer restriction when applying. Had they have done so we would quite obviously understand and hold our hands up to our mistake. They didn't, then offered us a mortgage with a much higher rate, an additional £400 fee. It seems unfair to me. We would not have applied had we have known.

Your mortgage advisor should have checked the product before submission as it is clear on the website that it is a a members only product. Coventry would have checked to see if you qualify and it appears you do not.

http://www.coventrybuildingsociety.co.uk/Intermediaries/Products/ProductPreview.aspx?ProdCode=FTM17&Company=1

However they may still allow you to switch over to a new 90% product so it would be best if your broker calls them to see if this is possible and they may agree to transfer the fee. The new product may however incur an arrangement fee, which can be added to the mortgage.

ACG

I just want to clarify, your mortgage advisor recommended a product that was only available to existing coventry building society customers?

If thats the case, your complaint is with your mortgage advisor, not the Coventry building society. If that isnt the case then im still confused.