What is Mortgage Arrangement Fee?

Legal Definition
Mortgage Arrangement Fee. Whilst some lenders charge an administration fee others may charge an arrangement fee. This fee is charged to cover administration and primarily the reserving of funds for fixed rate and/or discounted rate mortgages. This fee may be paid separately, added to the mortgage loan, increasing its size, or deducted from the value of loan that the lender is prepared to advance.
-- Wikipedia