Definition

A lender may charge a product, arrangement or booking fee for a mortgage deal. The amount, payment date, refund terms and whether it can be added to the loan vary. Adding the fee to the mortgage increases the balance on which interest may be charged.

Practical example

A fee-added option can reduce the cash needed at application but may cost more over time than paying the fee upfront.

Why it matters

Compare the rate and fee together over the intended deal period rather than selecting on either figure alone.

Mortgage broker fees and other costs

Source and review

Reviewed 16 July 2026. Product criteria and rules can change.

FCA Handbook: mortgage disclosure

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