Arrangement Fee

Arrangement fee may be used by some lenders as an alternative term to an administration fee. Whilst some lenders may charge a simple administration fee the arrangement fee can be charged to cover not only administration but also the cost of reserving of funds for fixed rate and/or discounted rate mortgages.

This fee may be paid separately, added to the mortgage loan, increasing its size, or deducted from the value of loan that the lender is prepared to advance.

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Last Updated: March 2007 © Moneyextra.com

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