A fee charged by the lender and /or the broker at the point a loan application is made. Normally Heads of Terms (HoT’s) would have been issued. The terms will not be Credit-Approved at this stage, but you would expect the lender to have tested the appetite of their Credit Committee by having a conversation around the case before issuing HoT’s. A lot of work goes into preparing and underwriting Property Development Finance, Bridging Finance, or a Commercial Mortgage, so a Borrower should expect to pay a fee on application. However, it must be commensurate with the loan you are applying for. You occasionally hear horror stories of borrowers paying large, non-refundable fees, when the lender has no intention of (or chance of) approving the loan and keeps the fee. Make sure you’re dealing with reputable Lenders and Brokers.