By law, a "representative APR" only has to be offered to at least 51% of people who take up the deal — the other 49% can legally be quoted a higher rate based on their credit profile.
This tool illustrates the cost difference between two rates you enter — it can't tell you what rate you'll actually be offered, since that depends on the lender's own credit scoring. Use it after you've received a quote, to see in cash terms what a better or worse rate would mean.
UK lenders are required to advertise a 'representative APR' — but that rate only has to be given to at least 51% of customers who go on to take the loan, based on their credit profile. The remaining customers can legally be offered a higher rate, which is why the number in the advert and the number on your actual offer letter don't always match.
This tool doesn't predict which rate you'll be offered — it simply shows what the gap between two rates actually costs in monthly payments and total repayable, so you can judge whether a quote is worth accepting or whether it's worth applying elsewhere for a second opinion.
No — it's expected and legal, as long as the representative rate is genuinely offered to at least 51% of successful applicants. Your specific rate depends on factors like credit history, trading time, and the lender's own risk assessment.
It's usually worth comparing at least one other lender, since credit scoring models differ between providers — a rate that looks high with one lender may be more competitive with another, especially for newer or lower-turnover businesses.
A soft search or eligibility check (which most lenders now offer before a full application) doesn't affect your credit score. Multiple full applications in a short period can have a small impact, so it's worth checking whether a quote is a soft search first.