Visa fees refund

[emceez]

Hi,

I had got a CoS from my employer for upto 5 years. But since I did not have plans to stay for that long, I thought of applying for a Tier 2 General visa upto 3 years( as the fees was double for more than 3 years). So, I decided to fill up the form for myself and my wife and submitted the same couple of days back.

Today I got a call from British High Commission that I had paid the wrong fees. They asked me to send a withdrawal request and re-apply with the correct fees.

I think I had chosen the wrong category (should have been Tier 2 General more than 3 years), because the fees is shown in the visa website and not something I myself would pay.

I have the following questions now

1) Is there a way to get a refund of the fees that I have paid for my application? Or did I just lose the money trying to save it?
2) When I re-apply do I need to mention the above withdrawal as a case of rejection while filling the application form?

Quick replies are appreciated.

Regards,
Manish