Will they charge us if we decline the offer?

yummymsmummy

We're currently trying to remortgage after coming to the end of a 2yr fixed with Halifax. Our mortgage adviser found a 5yr fixed with Nationwide at 5.63 which we agreed to go for.

Long story short, we've been messed around so much. Our first application was cancelled without anyone consulting us (they didn't have the correct proof of income, which we then provided and they have since started up a new application and we've had an offer through the post). I've done so much chasing about this morning - it seems the first set of solicitors dealing with the cancelled application weren't (like us) actually aware it'd been cancelled, and so we have already been through the process of providing proof of ID and adress etc.

Consequently this morning, a pile of letters from the new solicitors comes though the post starting from the beginning of the process. I've been trying to sort this out all day now, and have made dozens of phone calls, and it still isn't sorted.

To add insult to injury, the interest rate on the mortgage offer that fell through the letterbox this morning is 5.83, not the 5.63 which we had agreed with our mortgage advisor! Nationwide say there's nothing they can do about this as the first application didn't even get to the offer stage :mad: .

I'm worried that everything we've signed and sent back to our mortgage advisor has somehow 'tied us in' to something, fees etc - and from looking at the mortgage offer, we may be liable for £499 for a 'product reservation fee' if we decide not to go for it. I'm wondering whether this is the case considering we've been seemingly kept in the dark and not informed about anything? And will we be liable for any fees from the original solicitors? (The mortgage included free legals if this helps)

Incidently, after all the stress today i decided to ring Halifax, and they have offered us a lower rate than 5.83 - but we are wary to commit in case we're locked into Nationwide.

Can anyone offer any advise?

Sorry its long.

Regards, Clare

Leon_W

No you're not tied.

If you feel the Halifax deal is better for you then go for it. They will just send you out a KFI for the new mortgage deal and that's it. The transition will be seamless.

dwsjarcmcd

I would agree with Leon, you can decide not to go ahead if you want, it happens every day. The only thing I would add is to ask if you have paid any fees yet i.e. the £499, or any part of it? If not, then no issues, these are usually debited on completion, although some schemes make you pay part or all of this up front and tend to be non-refundable.

Finally, are the fees for the Halifax deal similar? You should check before you finally decide.

David

yummymsmummy

Thanks Leon and David for your replies.

We haven't paid the £499 to Nationwide yet, we had agreed with them that this would be added onto the mortgage. The only thing i was worried about was this - "Nationwide reserves the right to collect from you any fees you have opted to add to the loan if the mortgage does not complete or if you change products" ?

The arrangement fee with the Halifax deal is £699 - admittedly a little more, but a lot less hassle, and the monthly payments (after the addition of the fee) are less.

Clare

Leon_W

They wont take it.

I have never known a lender try and enforce a fee in this circumstance where you have opted to have it added.

yummymsmummy

Thanks Leon. A huge weight off my shoulders after a long day of chasing everyone around! :T

dwsjarcmcd

Yet again, I agree with Leon, they won't try to collect, particularly given the runaround you've had.

David

itsnever2lateisit?

If it helps six months ago we pulled out of a deal with NW after they wanted an engineers report, we had already paid the £499 up front, and they promptly refunded it when asked to do so in writing

dimbo61

hi clare walk into your halifax office or talk to the bank manager on the phone and ask if you can have the fee reduced or better still fee free.
remind them you have been a loyal customer and hopefully a good risk as you already have your mortgage with them.
you have nothing to lose and £699 to gain,
tell them the offer you have from nationwide ( the fee not the rate !!)
and you are considering moving to first direct if they cant waiver the fee
ask it worked for me a few years ago GOOD LUCK

mystic_trev

The way things are going, Halifax will have withdrawn the rate you're looking for before you can grab it! You need to act FAST !