Pricing
Arrangement Fee
An arrangement fee is the lender's charge for setting up a secured loan. It typically ranges from £495 to £1,995 and can usually be added to the loan rather than paid upfront.
Lenders use different fee strategies. Some advertise low headline rates with high arrangement fees; others charge a higher rate with a smaller fee. The trade-off depends on your loan size — a £1,995 fee on a £20,000 loan is far more impactful than the same fee on a £100,000 loan.
On most products you can choose to pay the fee upfront or add it to the loan. Adding it to the loan is convenient but means you'll pay interest on the fee over the entire loan term, increasing total cost. Paying upfront avoids this but requires liquid funds at the time of completion.
Always compare APRC rather than headline rate when fees vary. A 7.5% rate with £1,995 fee can have a higher APRC than a 7.9% rate with £495 fee, particularly on smaller loans.