Arrangement fee

Definition

An arrangement fee (often called a product fee) is a fee charged for a mortgage deal.

How it’s paid

You may be able to:

• pay it upfront, or
• add it to the mortgage balance

Why it matters

If you add a fee to the mortgage, you usually pay interest on it as part of the balance. That can increase the total cost over time.

Practical tip

When comparing mortgages, compare rate + fees rather than rate alone. Two deals can have similar overall cost but very different fee structures.