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so i "was" buying a new house, went to rbs sorted a mortgage (first time buyer ltv 75/25), figures were all good and they accepted me so i went ahead and they processed it and made me an offer.....3 months down the line the house builder goes bust so no new house
go back to rbs to say found a different existing house that needs a bit of work so want to change address and product to a 85/15 they have turned round and said thats fine but im still liable for the original arrangement fee!!!
how can i be liable for a fee on a loan that i never actually drew down on???
tell them to get ****ed or you'll get a mortgage with someone else.
unless you can't. in which case, your stuck with it. they have the money you want...
Unfortunately the KFD that you (should) have been given would have stated when the Arrangement Fee on the original loan would be waived - essentially this fee is an insurance policy for the lender to ensure that you won't apply for a loan with them, then see a better deal elsewhere and apply for another loan...
In your situation I would expect RBS to be a little more sympathetic though. Who have you spoken with? If it's just the call centre staff or staff in your branch you'll need to escalate it to a manager. If you applied through a broker they really should be able to apply some pressure too.
[i]how can i be liable for a fee on a loan that i never actually drew down on[/i]
if they'd agreed the loan and set the money aside for you then they've incurred costs.
most seem to say if we make you an offer and you accept but subsequently don't complete we'll charge you the fee, ime.
mmmhh i could go to another provider dont think that would be too much of an issue but from what your sayin mcobie i would still be liable
seems a bit crap when they are still getting the business
Speak to [url= http://www.lcplc.co.uk ]London and Country[/url] and get yourself a different mortgage.
Dave
it was just the call centre staff i spoke to, my named mortgage advisor is on a course till thursday,
have called them and told them to hold fire till i talk to her
well, in the mean time, I'd be talking to a broker to find a different deal.
If you have changed the prices and the LTV you might find that the product you were going for is no longer best for you.
no harm in getting some independent advice while you wait for her to come back from her course.
Dave
I was on the verge on buying a house in January that fell through the day before completion. I then bought somewhere else in March.
I used First Direct (owned by HSBC) for the mortgage - the money had actually been transferred to my solicitor to complete the purchase.
I just had to pay a nominal amount to transfer it back and one days interest after the non-completed sale. I then borrowed the same amount for the purchase in March.
Only paid one arrangement fee and First Direct were excellent throughout.
In your shoes I would keep escalating this until you get a result (unless the arrangement fee is fairly small in which case I would just go elsewhere).
I'd suggest keeping on complaining. Threaten to, then file an ombudsman case: the case fees are quite high, and paid by the bank win or lose, so the banks tend to settle prior to the FOS being involved unless you really are in the wrong. And even then they might give you some vouchers as a good-will gesture, if you shut up, as its cheaper.
On the other hand, the principle behind a reasonable arrangement fee is quite sound: they have agreed to provide you a set amount of cash at a set rate, at a time of your choosing within a given period. They have to lock in the financing for themselves, through getting other customers deposits or wholesale, and will face a break fee or equivalent costs on their own financing if you drop out.