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Mortgage application fee

Hello

First time on this site, so excuse if I'm asking the wrong thing in the wrong place.

We applied for a mortgage last week which was agreed in principle by the Woolwich through our IFA, so we sent off a fee of £995 to complete the application and then they refused the mortgage.

They're now claiming they can keep the fee as it was part of the application - can this be right??

All advice,comments appreciated.
thanks,

Comments

  • dwsjarcmcd
    dwsjarcmcd Posts: 1,857 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    It depends on the way the fee is described. If it is an application fee, then they probably can, but it is unusual for a fee of a much as £995 to be fully required on application, usually £2-300 on application with the rest on completion. Your broker should have explained this and warned you of this. Speak to your broker. If no joy then go to a formal complaint then to the ombudsman because retaining that amount of money for a rejected application is shocking
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