Another HLC question

Sportingman

Hi, I understand there have been lots of threads on this, but I have a specific question regarding my mortgage. I took out a mortgage with Chelsea building society April 1997 and one of the clauses is as follows.
"A lending risk fee of £828.12 being deducted from the advance monies on release by the society. This fee is neccessary because the total advance exceeds the Society's normal basic advance and Society requires additional security in the form of an indemnity policy arranged with an insurance company"
While I understand the principle of a mortgage company wishing to protect their loan, by deducting the fee from the advance I have been paying interest on that money which I did not receive and was not given the opportunity to pay a flat upfront fee.
Can I challange this as misselling?
Many thanks.

dunstonh

Can I challange this as misselling?

No. You were not mis-sold.

You had a choice. Either you pay it or put a higher deposit down.
You also had a choice to pay it up front or add it to the mortgage and you are free to repay that extra bit at any time you like. Your choice.