Coventry - Mortgage Booking Fee

edited 30 November -1 at 1:00AM in Reclaiming Mortgage Fees, Council Tax, etc
6 replies 1.5K views
mellows23mellows23 Forumite
12 Posts
Hi There,

I applied for a mortgage with the Coventry and paid a 'non refundable' booking fee of £199.

We applied via a broker 2hours before this product was to be taken off the market.

We then get rejected, much to our surprise, with in my opinion some of the reasons given are not valid. We both have excellent credit ratings, but were told I had to many commitments on my payslip;

- Charity payment (can be cancelled at any time)
- Bike to work scheme (1 month remaining)
- Pension Salary sacrifice (amount can be changed at any time)

Surely the above are not acceptable reasons? They hold no logic!

We have since been accepted to a much higher amount with a different mortgage provider with no problems.

Although I knew the £199 would be non refundable, I also entered into this thinking the Coventry would treat us fairly. In my eyes it is clear this product was being pulled from the market, so they made up an excuse no the give it to us.

Do we have a leg to stand on here?

1) - Are there only certain parameters that you can be reject from a mortgage application?

2) - Are there certain costs that the £199 should be covering? Could I quibble these?



From what I have seen online people seem to be of the view that this cannot be reclaimed, but I dont understand why people are being so defeatist at what is clearly an unfair charge?

All advice/ views are welcome.

Replies

  • dunstonhdunstonh Forumite
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    We then get rejected, much to our surprise, with in my opinion some of the reasons given are not valid. We both have excellent credit ratings, but were told I had to many commitments on my payslip;

    - Charity payment (can be cancelled at any time)
    - Bike to work scheme (1 month remaining)
    - Pension Salary sacrifice (amount can be changed at any time)

    Salary sacrifice is not something that should affect the mortgage application. Those things are easily explained away and decision changed if they are the real reasons (typically it is total expenditure that matters. Not just via your payslip)

    What was their response when the underwriter was contacted with clarification given?
    Although I knew the £199 would be non refundable, I also entered into this thinking the Coventry would treat us fairly. In my eyes it is clear this product was being pulled from the market, so they made up an excuse no the give it to us.

    Do we have a leg to stand on here?

    1) - Are there only certain parameters that you can be reject from a mortgage application?

    2) - Are there certain costs that the £199 should be covering? Could I quibble these?

    No. you dont have a leg to stand on. You knew the fee was non-refundable.
    1 - no. They can reject for any commercial reason as long as it is not discrimination
    2 - if you dont like the fee then you should never have applied. It is too late afterwards. They dont have justify the fee or break it down.
    From what I have seen online people seem to be of the view that this cannot be reclaimed, but I dont understand why people are being so defeatist at what is clearly an unfair charge?

    it is not unfair. That is why.

    However, I suspect that they would overturn their decision once an underwriter is given clarification (assuming no other expenditure issue exists). And therefore offer you the mortgage.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Thanks for your response.
    No. you dont have a leg to stand on. You knew the fee was non-refundable.
    1 - no. They can reject for any commercial reason as long as it is not discrimination
    2 - if you dont like the fee then you should never have applied. It is too late afterwards. They dont have justify the fee or break it down.

    I did know the fee was non-refundable, but at the same time I thought my application would be taken seriously, and not just rejected because they didn't want anyone else to get that rate? I didn't mind paying because there was no reason to think the mortgage wouldn't go ahead. (Plus they pretty much all have these fees?)

    1- I think the problem here is because I went via a broker, I don't have a black and white response from Coventry as to why exactly it was rejected, just a list of reasons from my broker. I will seek written clarification on this before deciding my next move.

    When the broker tried to speak with the underwriter direct he wasn't allowed to speak with him so couldn't argue our corner. Case closed, mortgage rejected.



    2 - This is the kind of thing I was referring to earlier in my initial post. Everyone seems quite negative when it comes to these fees and I cant really grasp why? There are plenty of fees/ charges which people agree to when applying but then get overturned or refunded for being excessive or unfair. I dont get why these are seen any differently?
    it is not unfair. That is why.

    If my mortgage application was judged differently because we applied for a product at a rate which they no longer actually wanted to give, then surely that is unfair.


    Anyway, I think I'll contact the Coventry and at least try and get them back. The worst case scenario is that I am still £199 down!
  • dunstonhdunstonh Forumite
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    I did know the fee was non-refundable, but at the same time I thought my application would be taken seriously, and not just rejected because they didn't want anyone else to get that rate? I didn't mind paying because there was no reason to think the mortgage wouldn't go ahead. (Plus they pretty much all have these fees?)

    They have rejected it on the basis of affordability. Not because of rate.
    1- I think the problem here is because I went via a broker, I don't have a black and white response from Coventry as to why exactly it was rejected, just a list of reasons from my broker. I will seek written clarification on this before deciding my next move.

    When the broker tried to speak with the underwriter direct he wasn't allowed to speak with him so couldn't argue our corner. Case closed, mortgage rejected.

    Brokers have access to underwriters or are able to get fixed information that they feel is wrong. What you state about your payslip indicates an error or misunderstanding. Or it could be that they are not happy with the overall expenditure and have just selected payslip expenditure as the reason rather than using a different reason.
    2 - This is the kind of thing I was referring to earlier in my initial post. Everyone seems quite negative when it comes to these fees and I cant really grasp why? There are plenty of fees/ charges which people agree to when applying but then get overturned or refunded for being excessive or unfair. I dont get why these are seen any differently?

    What fees are you referring to that you see overturned as being excessive or unfair?
    If my mortgage application was judged differently because we applied for a product at a rate which they no longer actually wanted to give, then surely that is unfair.

    Do you have any evidence to support that view? The rejection reason you gave stated affordability.
    Anyway, I think I'll contact the Coventry and at least try and get them back. The worst case scenario is that I am still £199 down!

    You should do. at £199 they may well cave in. However, your broker should be as well. After all, that is what you are paying them for.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • GoldiegirlGoldiegirl Forumite
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    You say that you feel some of the reasons were not valid.

    That implies there are other reasons, so just wondering what the other reasons are.

    It feels like we only have half the story.
    Early retired - 18th December 2014
    If your dreams don't scare you, they're not big enough
  • roonaldoroonaldo Forumite
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    You paid a non refundable fee, your mortgage application was declined. That's it.
  • "In my eyes it is clear this product was being pulled from the market, so they made up an excuse no the give it to us."

    Nonsense and you have nothing to base that on.
    Contrary to what you may think, lenders do actually want to lend money.

    As per above, it was non-refundable, you knew it, deal with it and move on.
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