Arrangement Fee

Full definition

Also called product fee or booking fee. A charge levied by the lender for setting up the mortgage. Common range £0 to £1,999. Often addable to the loan (you pay interest on it for the term) or payable up front. Fee-free products typically have slightly higher interest rates.

How this affects you

Whether arrangement fee is relevant to your mortgage depends on your circumstances — lender, product, deposit, employment, credit profile, and stage of application. An FCA-authorised mortgage broker will tell you exactly where it applies to your case.