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Administration Fees

Administration fees are particularly associated with mortgage products. Some lenders will charge you an administration fee when you apply for a mortgage.

You need to be careful with these fees, as some lenders will retain the fee even if they turn down your mortgage approval.

Administration fees do sometimes become bound up within valuation fees, but you may find that your administration fee is deducted even if the lender never gets as far as valuing the property.

In some cases, when you are successful with a mortgage application, the lender may suggest that the administration fee is included as part of the loan. This option is useful for some borrowers, as it means that they don't have to find the money immediately.

Don't forget, however, that if you do end up adding this fee in as part of your loan then you will end up paying interest on it, meaning that the true cost could be considerably higher.

Finance Facts also offers information on mortgages and financial terms.