Charged to arrange a loan on certain products. Usually applied to loans where a special interest rate or product features apply e.g. fixed, Buy to Let or Expatriate mortgages.

Arrangement fees is the term used to describe the charges from lenders to cover any setting up costs that finance products generate. Fees are charged for most UK finance products including loans, mortgages, insurance, credit cards and consumer credit. The actual amount charged can vary greatly from lender to lender and is dependant on the financial product, and can be used as a valid way to compare lenders. Lenders charge fees for setting up mortgages for customers to cover any work involved in arranging the mortgages. This will then be included in the over all amount lent for the mortgage, although this is a standard practice some lenders do advertise mortgage products where the fees are waived or cancelled to attract new customers. When buying property there are other legal costs to take into consideration and these can easily be over looked when saving up, the Grabber has a mortgage section for those interested.