24 Hour Loans glossary of financial terms

Application Fee

An application fee is a fee that is charged by a lender to a consumer that wants to take out a financial product such as a mortgage with them. It can also be known as an arrangement fee or a booking fee. This kind of fee is most commonly charged to cover a lender?s administration costs within the mortgage sector and may be particularly charged to organise special mortgage deals and offers ? it is no longer as commonly charged for most mainstream mortgage products.

An application fee is, however, also sometimes charged in the same way for some other loan products and may also be charged by a broker if you use one to arrange your financing. In most cases the application fee will be charged as a one-off payment once you have gone through the application process, although it is possible to have the fee added to the loan you take out as an alternative with some lenders.