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Mortgage booking fee (UK): what it is and whether it’s refundable

What a UK mortgage booking (reservation) fee is, when it’s charged, and when it might be refundable—plus a tiny example and what to check before applying.

Published: 05/05/2026 • Last verified: 05/05/2026

The short answer

A booking fee is an up-front fee some lenders charge when you apply for (or “reserve”) a mortgage deal. It’s often smaller than the main product/arrangement fee, but lenders don’t all use the same wording, so you need to check what your lender means by the label.

Whether it’s refundable depends on the lender’s terms for that specific fee. The safest approach is to treat booking/reservation fees as potentially non-refundable unless the lender explicitly says otherwise in the documentation.

A tiny example

You apply for a mortgage product that has:

  • A booking/reservation fee of £99 paid up-front, and
  • A product/arrangement fee of £999 (sometimes payable up-front or added to the loan)

If your purchase falls through and the lender’s terms say the £99 booking fee is non-refundable, you may lose that £99 even though you never complete. That’s why it matters to know which fee you’re paying and when.

What to check before you pay any fee

  • Look at the ESIS/mortgage illustration: fees should be disclosed in a standardised format for regulated mortgages.
  • Check which fee the lender is calling “booking” (some lenders use “reservation”/“application” wording instead).
  • Check refund rules: some fees may be refundable in specific situations; others aren’t.
  • Check whether the fee can be added to the loan (and if so, what extra interest you’d pay over time).
FAQ
Is a mortgage booking fee the same as an arrangement (product) fee?
Not always. Lenders use different names for fees. Your ESIS (mortgage illustration) and the lender’s tariff should show exactly what’s being charged and when. See: [Arrangement fee](/glossary/arrangement-fee/).
Can I add a booking fee to the mortgage?
Some fees can be added to the loan and some must be paid up-front. It depends on the lender and product, so check the illustration before you apply.
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