What is an Arrangement Fee?

The Arrangement Fee is also sometimes known as an Administration or Application fee. It's a charge to pay for your mortgage provider's administrative costs in setting up the mortgage.

The Arrangement Fee usually needs to be paid up front and the cost is frequently linked to the size of your mortgage. Your mortgage lender may offer to refund the fee when the property purchase has gone through successfully, but if the deal is not finalised, you will lose the money you paid.

Sometimes the arrangement fee is combined with the valuation fee, but in most cases, there will be no avoiding this administration charge.Speak to your Mortgage adviser about this.