What does Administration Fee mean?

Administration fees pertaining to mortgage lending are of more than just one type. Firstly, there could be an extra fee charged by the lender at the very beginning of the mortgage settlement, and it is usually a certain percentage of the valuation fee itself. It is important to know that in case for one reason or the other the application does not continue, this fee will not be recovered.

Then, there are administration fees which are required practically by the lender in order to start and finish the mortgage lending process, and these are usually called entrance and exit administration fees. Another type of administration fee is the early redemption fee, which means if a borrower decides to finish off earlier the mortgage, this will actually cost him.