Mortgage Glossary

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What follows is the definition for the term Administration Fee as it relates to mortgages in the UK.

Administration Fee

Some mortgage lenders charge this fee to cover their costs of administration (document preparation) and sourcing funds. Occasionally a lender will make this charge for not taking a building and contents insurance policy, or some other product offered by the lender in conjunction with the offered mortgage.

Often the administration fee will form part of the valuation fee and this part will not be refunded by the lender if the mortgage does not proceed. These fees are usually less than £50. 

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