They are more expensive than the lenders valuation. Both are up-front fees charges levied at the outset of the mortgage. A booking fee will normally be required with the application form. Booking fees are often non-refundable, so if the mortgage applicant cancels the mortgage application before completion the fee will not be reimbursed. An arrangement fee is typically charged on completion of the mortgage.
Arrangement fees are common on fixed and capped rate mortgages.
Frequently they can be added to the mortgage hence the fee does not become an 'out of pocket' expense. It is necessary to have a solicitor or licensed conveyancer to act on behalf of the mortgage applicant and the lender in the house purchase or remortgage transaction. The costs will be greater for house purchase than for remortgage. Insurance Lenders will insist that the property is adequately insured, with a suitable Buildings Insurance Policy, as it represents security against the mortgage debt. A buildings policy covers against storm damage, fire, flooding etc and relates to the fabric of the house or flat etc.