RBS Arrangement Fee reclaiming for a mortgage never received!?!

Hi - I'm looking for a little advice from anyone who can help me please

My boyfriend and I were trying to buy a new-build house in March last year and he was trying to sell his privately (at the time the houses in the area were still selling like hot cakes!)

We searched for products through a broker and started our application with RBS but after 1-2 months, neither we nor the broker had heard anything about the status of our application despite asking, and we were unable to sell my boyfriend's house.

We had not completed on the property so backed out of the buy, losing just our deposit (£99), and were fortunate to have an understanding lawyer who waived their fees completely. When we notified RBS that we were withdrawing our application (we had not heard anything from them re the status of our application...not even knowing if we had been successful!), they notified us that we had were still liable for the arrangement fee of £999 which we had indicated in our application paperwork we wanted to roll up into the cost of the mortgage and not pay up front.

We paid RBS this fee as they told us we would be blacklisted if we didn't, but on reflection it seems rather harsh to charge us for a product we never actually received or were aware we had been successful in applying for....

Would we be able to claim any of this fee back? Where do we stand?

Thanks in advance to anyone who can help!!!!