24 Hour Loans glossary of financial terms

Administration Fee

You?re most likely to come across administration fees in the home buying process. This kind of fee is often charged by lenders to cover their costs during your mortgage application ? it is charged to pay for their administration costs and the work they put in to arrange your loan. In some instances this may well be charged early in the mortgage buying process and there may be no refund of the administration fee if you decide not to take out the mortgage after all. Administration fees may also be bundled up with any valuation fees that will be applied to your application. Some lenders may call administration fees arrangement fees.

Administration fees are widely used in the loans sector if you choose to pay off a product early. So, for example, if you decide to repay your mortgage before the end of its term, then your lender may charge you a one-off administration fee which will again cover their costs for closing down your mortgage account.