Before you sign, ask these five questions. A good lender is glad to answer them.
1. What is the total I will repay?
Not just the monthly payment: the whole amount, with interest and every fee.
2. Is the interest on the reducing balance?
If it is a flat rate, the real cost is higher than it looks.
3. What happens if I pay late?
Ask for the penalty in writing, and whether you can agree a new schedule.
4. Can I repay early?
Some lenders charge for it. Ask.
5. Who is guaranteeing this, and what happens to them?
A guarantor is taking a risk for you. Make sure they understand it.