Product Fee (Arrangement Fee)

A product fee — also called an arrangement fee or booking fee — is charged by the lender for a specific mortgage product, particularly deals with lower interest rates.. Fees range from a few hundred pounds to over £1,500 and can be paid upfront or added to the loan (in which case you pay interest on them for the mortgage term). A low rate with a high fee is not always cheaper than a higher rate with no fee — always compare the total cost.