Banking and Finance Solicitor Interview Questions UK: 8 Real Questions and What Interviewers Want

Applying for a Banking and Finance Solicitor job in the UK? Here is what you are likely to be asked. These questions come from our Banking and Finance Solicitor question bank of 12 questions, written for UK employers at mid-level level.

Eight Banking and Finance Solicitor interview questions, and what the interviewer is thinking

1. Talk me through the main sections of a facility agreement based on the LMA recommended form.

Why they ask: This shows whether you can actually work with the core document of the practice area.

2. What security would a lender typically take from a UK company, and what steps are needed to perfect it?

Why they ask: Security work is a key part of a banking solicitor's role.

3. What does a typical day for a banking and finance solicitor look like, and why do you want to specialise in it?

Why they ask: They want to see motivation and realistic expectations of a deal-driven practice.

4. What are conditions precedent, and how would you manage the CP process on a deal?

Why they ask: CP management is a day-to-day task on every lending transaction.

5. What happens when a borrower defaults, and what is the difference between an event of default and a potential event of default?

Why they ask: Understanding default mechanics is crucial for advising lenders and borrowers.

6. Your lender client learns that the borrower will breach a financial covenant at the next test date and asks whether it can waive it. How do you advise?

Why they ask: They are testing commercial and legal judgement for a typical credit event.

7. Tell me about a time you helped to deliver a complex signing or closing with many parties and documents.

Why they ask: Deal management under pressure is a core competency in finance work.

8. How might a borrower's insolvency affect the validity of security that a lender has taken?

Why they ask: Insolvency risk assessment is essential when taking and advising on security.

A sample answer to question 1

Talk me through the main sections of a facility agreement based on the LMA recommended form.

A Loan Market Association facility agreement starts with definitions and interpretation, followed by the facility itself and its purpose, then conditions of utilisation, where conditions precedent and drawdown mechanics sit. Repayment, prepayment and cancellation provisions follow, together with interest, fees and the mechanics for calculating rates, which now use risk-free rates such as compounded SONIA after the LIBOR transition. Then come tax gross-up and indemnities, increased costs and other protections for the lender. The representations and warranties cover status, capacity, no default and accuracy of information, which are repeated on specified dates. Information undertakings, financial covenants and general undertakings, such as negative pledge and restrictions on disposals, form the main body of the ongoing obligations. Events of default come next, with the lender's rights on acceleration. The final sections cover changes to the parties, such as assignment and transfer, the agent and arranger provisions, sharing among lenders, and boilerplate, with English governing law and jurisdiction.

Common mistake to avoid: Reciting headings without explaining purpose; forgetting the SONIA transition

Want the rest?

Full model answers, key points and common mistakes for all 12 questions are on the Banking and Finance Solicitor interview questions page. The first five are free, no sign-up needed.