Non-refundable mortgage fees Natwest

therightthingtodo_2

A warning for everyone to be careful with paying the up front fees on the enticing Fixed rates deals, I did the 5 year fix with Natwest 4 months ago, I have a big mortgage so it made sense to get the lower rate over 5 years, but the vendor pulled out of the sale because they lost their job, and Natwest are still charging me the £2495 arrangement fee even though there's no property to put it on! So I've lost my survey fees, legal costs and this on top.

Natwest's stance follows the premise that funds are booked, rate reserved and they've secured the money. Therefore it's my problem.

Meanwhile I hand over a lot of money, dust myself off and start again, they have offered to roll the offer onto another house in the next 3 months but there's better deals out there now with fees £1500 lower!

Has anyone had any success getting these fees refunded as they won't budge on it for me?

R_P_W

What do the terms and conditions say regarding fees?

_Andy_

If you paid a non-refundable fee then, no, it's not refundable (would state in the KFI)

kingstreet

I thought NatWest fees could be added to the loan?

Did you choose to pay it up-front?

Rafter

I would still complain and threaten them with a complaint to ombudsman and FCA for an unfair contract term.

No problem with them charging an admin fee, valuation fee etc for costs they have incurred - but I think they are on very shakey ground trying to enforce this.

If they can genuinely demonstrate that the cost of securing the fixed rate money has been incurred for your specific loan and that such a high rate wasn't really just a way of advertising a juicy up front rate for best buy tables then good luck to them.

However, you may be able to extend the offer and apply it to a new property - although from what you say the product is no longer that competitive.

Good luck

R.

JimmyTheWig

kingstreet wrote: »

I thought NatWest fees could be added to the loan?

Did you choose to pay it up-front?

Is it true that if paid up-front then you don't get it back but if added on to the loan you don't have to pay it?

_Andy_

"I would still complain and threaten them with a complaint to ombudsman and FCA for an unfair contract term." - how is it unfair?

Thrugelmir

Rafter wrote: »

I would still complain and threaten them with a complaint to ombudsman and FCA for an unfair contract term.

Book something and then don't use it. You lose the money.

Is that an unfair contract term in every instance of every day life?

ACG

To be fair though, natwest have said she can transfer it to a new property in the next 3 months (presumably to fall in line with the DIP or App expiry).

But thats not good enough because there are now lower rates available?

kingstreet

JimmyTheWig wrote: »

Is it true that if paid up-front then you don't get it back but if added on to the loan you don't have to pay it?

Dunno about NatWest, but it certainly works like that with a few lenders. It's one of the reasons we go "add to loan" on our cases and then change them close to completion.

JimmyTheWig

Thrugelmir wrote: »

Book something and then don't use it. You lose the money.

Is that an unfair contract term in every instance of every day life?

If it is a deposit for something, for which the company has had no costs incurred since taking your deposit, then I believe it is unfair that they keep your deposit.

In terms of mortgages it strikes me as unfair that people who choose to pay the mortgage fee upfront end up forfeiting that fee while those who choose not to pay it up front don't. Either the mortgage company has incurred costs - in which case all customers should pay them - or they haven't - in which case no customers should pay them.

I think the lesson for all customers, as kingstreet says, is to choose to add the fee to the loan. But that doesn't make it seem fair on those who don't.