product fee

frank3030

Just a question about product fee. when it says non refundable does that mean if you get declined your mortgage you lose your product fee.

catieeb06

Exactly, once you've paid that money out and the application begins processing, no matter what the outcome that money will not be refundable.

kingstreet

It does if you pay it upfront.

Would you like to tell us which lender this is and if the fee is payable on application, or on completion?

Dan-Dan

I wanted to ask this , take Natwest for example , pick a product with a fee and have it added to mortgage....get a MIP - Fail at full application , what do you have to pay then ?

or is a Natwest MIP as good as a yes if no facts change between granting the MIP and the full application?

lee111s

When I got my mortgage through YBS I paid £130 the day I submitted the full application. This was called a processing fee and was non-refundable.

Had I not taken one of their FTB specific mortgages, I would have also had to pay £175 up front for the valuation and then £995 product fee upon completion. Both of these charges aren't applied to their FTB mortgages.

kingstreet

Dan-Dan wrote: »

I wanted to ask this , take Natwest for example , pick a product with a fee and have it added to mortgage....get a MIP - Fail at full application , what do you have to pay then ?

or is a Natwest MIP as good as a yes if no facts change between granting the MIP and the full application?

You normally have the option of paying the fee on application, or on completion, or having it added to the mortgage.

All those are based on a full application. I don't know any lender which requires a fee payment for an AIP, as no product is selected at that stage, as it may have expired before you find a property.

frank3030

principality was the lender although it says it can be added to to the mortgage. just a lot to loose if declined.

Dan-Dan

surley you wont lose it , if its added to the mortgage you get declined for ?

lee111s

Correctomondo

kingstreet

if the mortgage doesn't complete, there's an argument the lender has nothing to add the fee to. However, I'd check the terms and conditions to make sure there is no clause which requires you to pay the money anyway.

There are brokers who charge their fee on production of an offer, so you'd have to pay them if you decided not to proceed after that, so caution is advised.

Wh05apk

I think Nat west are the only lender who charge if the mortgage does not complete, after an offer has been issued?