HSBC Refusing to transfer/refund Booking Fee

ExeCute

Hi,

Hope you can help, need to check what the mortgage agent at HSBC told me is now correct.

I made an application for a property, finally got approved in full so paid £99 booking fee (rest added to mortgage) and went ahead with a valuation. The valuation returned back £10k less than our offer so we decided to pull out of the deal (December 3rd). We was told when we find a new property we just start a new application and tell the underwriters about our previous application so all the documents will already be on file and our booking fee should be transferred over.

We have now found a new property so I called them today and the lady told me I had to start a new application and that I will lose that booking fee paid and that it states this quite clearly in the application.

I guess I must have missed this ? Is this correct as It seems a little unfair.

Thanks

Paul

ACG

Booking fees are usually non refundable/non transferable - they are exactly what they say... a booking fee. You booked the money but never drew down on it.

You could argue that you were told one thing, but they would argue your paperwork says something different. This is oneof the downfalls of booking fees, you do risk losing money.

ExeCute

But they make you pay the booking prior the valuation, I can understand if it was after the valuation. Just seems like a way of extorting extra money ?

ACG

They presumably have a pot of money to lend out and have put aside your money for you?

It is a way of making extra money. Theyre a business. They could waive all fees and charge a higher rate but a lot of people get caught up in the whole I only pay 0.001% interest, rather than the overall cost of the mortgage, so it can be a marketing tool to have low rates but high fees.

Thrugelmir

ExeCute wrote: »

But they make you pay the booking prior the valuation, I can understand if it was after the valuation. Just seems like a way of extorting extra money ?

You decided not to proceed with the purchase. Did you not try and negotiate with the seller?

ACG

Ive just been on the site out of curiosity.

It says booking fee and has a grey circle with a question mark in it. Move your mouse over and it says - This is a non-refundable fee charged on some mortgages to secure a particular mortgage deal.

It would also have mentioned it on the KFI (Section 8).

I dont think its been hidden - I know you have not said it was hidden. The product I looked at had a £1500 booking fee - ouch!

I have no affinity to HSBC, theyre one of the few lenders we brokers do not use so their site is pretty new to me.

ExeCute

thanks for getting back to me, appreciate your input and will move on.

ACG

Im not suggesting you should give up if you believe you have a valid complaint. I would be a little annoyed if I were told one thing but im just saying I can see their side also - but being in the industry I suppose I do know what im looking for.

stator

Yes I would complain, in writing, about the person who lied to you. Just don't wait for a reply or expect a refund. Maybe you'll get somewhere, maybe you won't.

amnblog

Your booking fee may have been transferable if the original product were still available.


If that product were discontinued the booking fee would rightly be lost.


Any suggestion that you were 'lied to' implies deliberate deception and sounds wide of the mark.

ExeCute

So I just called HSBC about this new application I was told to create and the guy just comes out and asks my when Im doing that instead of editing the old one.

I was told on my previous call that I couldn't do that and I lose my fee's, and the previous person before that told me I could. This is driving me bonkers.

I've now been told he's going to call me back shortly as hes going to unlock my old application, but I wont lose the fee as its the same application.

How can i get 2 different answers from 3 people from the same department ? Totally crazy.