mortgage arrangement fees

[dfen5]

If a buyer of your property pulls out once you've gone to the trouble of arranging a mortgage on the proprty you're moving to and the chain breaks down, do you still have to pay the mortgage arrangement fees?

The valuation survey I guess so. Can you claim anything back from the person that breaks the chain?

[scotal]

dfen5 said:

If a buyer of your property pulls out once you've gone to the trouble of arranging a mortgage on the proprty you're moving to and the chain breaks down, do you still have to pay the mortgage arrangement fees?

The valuation survey I guess so. Can you claim anything back from the person that breaks the chain?

If the valuation has been carried out then the fee will be charged. If the valuation has no tyet been done, then you might get a refund of some of the fees. (There will be a hefty "admin" fee charged by a lot of lenders.
If you paid the arrangement fee up front, you are mostly fked for that. If it was due to be added then usually it will not be carged. There are a few lenders who will charge a fee on a mortgage that does not go to completion. 1 for instance charges £150.

As of rsuing the person that breaks the chain, I believe its possible, but so lengthy that you will most likely spend more than you get back.

BTW, your lender should have explained all the fees to you either on the KFI or the offer.

[RichBurley]

To the OP: Nope. If the mortgage is arranged, then you pay the fee.

You haven't exchanged contracts with the potential buyer, so they have not breached any contract. There is no requirment that you have to buy a house, when you sell, and that the house purchase is by way of a mortgage, subject to a mortgage arrangement fee. So there is no legal basis for the recovery from the potential buyer.

[scotal]

RichBurley said:

To the OP: Nope. If the mortgage is arranged, then you pay the fee.

Not true in all cases.

[RichBurley]

scotal said:

RichBurley said:

To the OP: Nope. If the mortgage is arranged, then you pay the fee.

Not true in all cases.

Nope, but I'm talking about this case. And if the OP is considering pursuing the fee from the potential buyer, then clearly it's a fee that he has to pay. Otherwise, he would simply not pay it, or he would get a refund.

But agreed, in other cases, not mentioned in this thread, the fee may or may not be recoverable.

Better?

[scotal]

I was assuming he hadn't yet paid the fee, and wasn't sure if he'd get a bill from the lender.

so we agree, I think.

[RichBurley]

scotal said:

I was assuming he hadn't yet paid the fee, and wasn't sure if he'd get a bill from the lender.

so we agree, I think.

We sure do. I think. But that's gotta be the best way!

[scotal]

Another point for the op, if you've "lost" the house you wanted to buy, you can usually keep an application alive whilst you find another, and although you'll have to pay an extra val fee, you won't have to pay another arrangement fee.

[dfen5]

Wow, let's hope my buyer keeps on with the purchase. It's only down to extra surveys (gas & electricity) that we know will come back clear (I had them done not so long ago but didn't make the buyer aware as they didn't ask before I found out they were having them done).

Not paid the bank's fees yet btw.

I really hope not to lose the house we have found.

Thanks for taking the time reply.

Edited by dfen5 on Monday 7th December 12:27