What questions should I ask a lender before

2 min read

Search typeSoft or hard

Total costNot just rate

GuaranteeRequired or not

TimescaleRealistic

Protect your credit and your time

The first question is whether the initial check is a soft or hard search — this decides whether you can compare freely without marking your file. Also ask the realistic timescale so it fits your need, and what documents they require so you can prepare with the checklist.

Understand the true cost

Ask for the representative APR, all fees (arrangement, facility, early repayment), and the total amount repayable over the term — not just the headline rate. A cheap rate with heavy fees can cost more, as the arrangement-fee answer explains. Put the answers through the repayment calculator to compare like for like.

Know the strings attached

Ask whether a personal guarantee or security is required, what covenants apply, and whether you can repay early without penalty. These shape the real deal as much as the rate. Working through the borrowing-decision checklist first means you arrive with the right questions.

Frequently asked questions

What is the single most important question to ask?

Arguably whether the initial check is a soft search — it determines whether you can shop around without harming your credit file. Close behind is the total amount repayable, which reveals the real cost.

Should I ask about early repayment before I even borrow?

Yes. Knowing whether you can settle early without penalty matters if your plans might change or cash flow improves. It is much easier to establish before you sign than to discover afterwards.