Seller pulled out- refund of mortgage fee?

[Panda2021]

So heartbroken, day of exchange of contracts the seller has pulled out. Our House was packed and ready to move in a few days. Now trying to calculate all the costs to us despite staying where we are- solicitor full cost, removals hefty deposit, survey paid for, mortgage broker paid for., storage paid for. We paid £1000 Mortgage arrangement fee up front directly to the mortgage lender - is this in any way refundable given the mortgage will not be drawn down? Our mortgage broker is away for two days so can’t ask just yet. Says in the small Print non refundable but wondering if there is discretion? Any advice appreciated.

Which lender?

@alwayswrighty NatWest

The same happened to me and I lost thousands. The law around house buying should be changed.
I didn't pay a mortgage fee on the first mortgage. But when I needed a new mortgage with same company for a new house I found to buy a few months later, I was told that I had 'used' the free valuation fee so now had to pay for one (I think this wasn't arrangement fee but the valuation/survey).

Not very helpful, sorry! Could you ring the lenders direct?

I think they'll do it on case by case basis. Ask. Or, if you are planning on buying another property, perhaps they will put the fee towards that.
You not taking the mortgage will cost them money though, so they may well keep some if not all of the fee.

@Panda2021

So heartbroken, day of exchange of contracts the seller has pulled out. Our House was packed and ready to move in a few days. Now trying to calculate all the costs to us despite staying where we are- solicitor full cost, removals hefty deposit, survey paid for, mortgage broker paid for., storage paid for. We paid £1000 Mortgage arrangement fee up front directly to the mortgage lender - is this in any way refundable given the mortgage will not be drawn down? Our mortgage broker is away for two days so can’t ask just yet. Says in the small Print non refundable but wondering if there is discretion? Any advice appreciated.

Ballsy by them considering they know you know exactly where they live etc. I hope they have a genuine reason for screwing you over, otherwise I’d be contacting the local front drive replacement specialists.

FGS what is wrong with people. I think you have lost the lot, sadly. Awful thing to do. 😞

I'm so sorry! Absolutely awful.
Is this any help?

That's must be horrible for you.

This happened to my friend and the solicitor (graciously) halved their bill.

Unfortunately I don’t think NatWest will shift. I worked for another high street bank for a long time and processes have been to pretty inflexible so they can demonstrate customers are all treated fairly/equally Only thing might be if you find a new house quickly and can transfer it over.

Horrible I'm sorry OP.

The whole system needs reviewing. One party being able to pull out any time before exchange regardless of what the other side has spent, never mind the chains that get broken is horrendous.

We are buying.. why it has to be heart in mouth for months until exchange is through I do none. Surely there's a better way.

@Panda2021 I work in a wom mortgage brokers and our admin team say you should get a refund from Natwest under those circumstances

@alwayswrighty thanks will hope so, considering we could have added the arrangement fee to the mortgage and then they wouldn’t have been paid it as mortgage payments wouldn’t have been made. We did it directly upfront so hopefully get it in some way refunded. Thank you all

I'm so sorry this happened, they really need to change the laws around house buying to protect everyone.

So sorry for you OP.

It hard because the solicitors/lenders etc have held up their end of the bargain, so should really be out of pocket.

The law needs to be changed and the seller should be responsible for the fuckkng around

I really feel for you it is so horrible when this happens.

Happened to me many years ago and I lost about £5k. Exactly the same as you, twelve noon on day of exchange my buyer pulled out.

Good luck going forward.

How awful OP, have the sellers said why? I hope you find somewhere even better soon and get your mortgage fee refunded.

They haven’t provided a reason nor will discuss it. We have calculated about £5k in bills and 6k is the arrangement fee is not returned- the broker is hopeful that something can be done to return that but will give it awhile rather than cancel immediately in the unlikely chance something will come up and can be transferred. It is what it is unfortunately, terrible that this can happen and never thought it would so it’s been a difficult thing to accept. Sorry for those who have been through the same !

How awful, I'm so sorry this happened to you. It is so infuriating you don't know a reason why - it's the least they could do under the circumstances, what horrible people :(

They haven’t provided a reason nor will discuss it.

That is awful! I hope the estate agent is giving them a massive bollocking. We lost our buyers the day before exchange, and our house was packed. I’d done postal redirection and everything. Was a complete pain in the arse to sort out. HOWEVER we found another lovely buyer, and managed to keep the house we wanted and finally moved three weeks ago.

It is awful but the house buying system allows it. Our broker strongly recommended adding the mortgage fee to the monthly payment as it means if we end up reengaging on the mortgage we don’t need to pay it. He said he always advises this and advises to overpay it at the earliest chance to avoid compound interest. We have had 3 purchases fall through which has potentially saved us £3k.