24 Hour Loans glossary of financial terms

Arrangement Fee

An arrangement fee is a fee that you pay to a financial company when they set up a product for you. It can also be called a booking fee. This fee normally goes towards paying their administration costs etc. Most arrangement fees are charged by mortgage lenders, although other lenders may also charge them for other financial products such as loans.

Many mortgage lenders will now waive arrangement fees for standard mortgages and will only charge them for special rates and deals. If your arrangement fee is mortgage related then you?ll generally have to pay it as a lump sum payment once the mortgage is arranged, however some lenders will allow you to add the fee on to your overall mortgage loan. You may also be charged an arrangement fee by a broker if you use one to organise finance for you, although not all brokers charge fees in this manner.