Natwest/RBS Application fee - non refundable?

uncreative

I applied direct to RBS a week ago and have finally had the pack through. It says they are looking for a payslip each and AML info for my wife (even though she has been a bank customer for 20+ years...but nevermind) so sounds like we are on track for a successful application. (fingers crossed)

I am voluntarily going to include a deposit letter as they still havent asked about source of deposit and want to make sure we are as open and honest as we can be.

We also have to include a cheque for £248 for a valuation fee and an application fee which is non refundable. It also says if we are accepted and dont go ahead we have to pay another £150 cancellation fee.

The product also has a £995 fee so is that right that we have to pay the bank for the admin process of deciding whether they can lend to us?

I understand business and there are clearly a load of staff processing applications but surely they would price that into the rate and recover the overhead that way. To have to pay them on a non refundable basis without any certainty that they will lend the money just about takes the cake!!

I know that the alternative would be to put the rate up slightly and recover it that way, but at least I would have had the loan at that point!!!!

blueblazer

You are paying £248 for the valuation, which isn't too bad and even if they reject you, they have still had to pay to have it done. That is the only non-refundable bit so they aren't really charging you for the admin if you are turned down.

Adj29

Natwest only instruct valuation after underwriting, I'm pretty sure they only take the fee at the time of booking the actual valuation so this is a positive sign.

Adj29

Natwest only instruct valuation after underwriting, I'm pretty sure they only take the fee at the time of booking the actual valuation so this is a positive sign. So although non refundable it's only taken once the mortgage is practically approved.

dunstonh

o is that right that we have to pay the bank for the admin process of deciding whether they can lend to us?

You are creating work. Who is going to pay for that work if you dont?

Why do you think the valuer should not be paid for the work he/she has done?

but surely they would price that into the rate and recover the overhead that way.

But that would increase the interest rate and make them appear less competitive on pricing tables which would reduce the amount of business they get. It also means other people are paying for your work.

Cross subsidy is being gradually eroded in financial services as the regulator and consumer groups don't like it.

To have to pay them on a non refundable basis without any certainty that they will lend the money just about takes the cake!!

Use a broker then as they can speak with underwriters on borderline cases before submitting to know if the lender is likely to have an issue with it (on top of their experience and knowledge).

Thrugelmir

uncreative wrote: »

To have to pay them on a non refundable basis without any certainty that they will lend the money just about takes the cake!!

So the surveyor ( in fact his employer) that works on behalf of the lender only gets paid if you obtain a mortgage. :eek:

What is your monthly salary depended upon other people actions. Bet you wouldn't be happy!

uncreative

Guys,

I have something that you may like to buy. Why don't you give me £99 and then I will decide whether you are getting it or not.

Didn't think so........

uncreative

blueblazer wrote: »

You are paying £248 for the valuation, which isn't too bad and even if they reject you, they have still had to pay to have it done. That is the only non-refundable bit so they aren't really charging you for the admin if you are turned down.

£99 application fee and £149 valuation fee. I absolutely agree with the valuation, obviously I would pay a broker their fee or a lawyer their fee or an accountant their fee. I wasn't disputing that....Its the £99 admin fee that I was talking about.

uncreative

Thrugelmir wrote: »

So the surveyor ( in fact his employer) that works on behalf of the lender only gets paid if you obtain a mortgage. :eek:

errr..no. They get paid regardless and quite rightly so as they have done the work they have been engaged by me (via the application)

Thrugelmir wrote: »

What is your monthly salary depended upon other people actions. Bet you wouldn't be happy!

No, but that isn't really relevant.;)

uncreative

dunstonh wrote: »

You are creating work. Who is going to pay for that work if you dont?

Why do you think the valuer should not be paid for the work he/she has done?



But that would increase the interest rate and make them appear less competitive on pricing tables which would reduce the amount of business they get. It also means other people are paying for your work.

Cross subsidy is being gradually eroded in financial services as the regulator and consumer groups don't like it.



Use a broker then as they can speak with underwriters on borderline cases before submitting to know if the lender is likely to have an issue with it (on top of their experience and knowledge).

Dunstonh - why dont we set up a lending company offering mortgages of £150,000. We should charge, say, a non refundable application fee of £100,000. That way we can offer the mortgage at negative 200% interest rate and include cashback. We would race to the top of the pricing tables and be renowned worldwide for inventing the negative interest rate........

An absurd example I know, and apologise for. But do you see where I am coming from?

GoldenShadow

Adj29 wrote: »

Natwest only instruct valuation after underwriting, I'm pretty sure they only take the fee at the time of booking the actual valuation so this is a positive sign.

Unless they underwrite twice, it only goes to the underwriters post acceptable valuation.

They do a credit check before that, but mine was 'with the underwriters' when the valuation was back.