When is a non refundable application fee refundable on a mortgage turned down?Make Text Bigger
Having bought a 1 bedroom flat on a bridging loan six months ago we applied for a mortgage with Paragon to repay the bridging.
One of the terms and conditions was that the £150 application fee was non refundable.
We were happy with the fee and applied through our broker.
The flat was part of an Office to Residential conversion of approximately 30 apartments.
With the conversion fully completed and a tenant in place we thought that it would be a straight forward application.
However after several weeks Paragon declined the application stating something along the lines of there were “too many apartments in the building”
We could not get a more comprehensive explanation and are sourcing an alternative mortgage provider.
We would accept the loss of £150 application fee if we did not have a sufficient income, were not achieving a sufficient rent or chose to change our mind and go with a different provider but for Paragon to just say no without providing a proper explanation goes against the grain.
Has anyone else experienced a situation like this and appealed?
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.