As a platform, we take great pride in all that we've achieved since opening our doors for business nearly six years ago. We’ve
Why our lender rates are increasing
We’re thrilled to announce that, as of Monday, our five-year lender rate is increasing to 5.5 per cent – the highest level it has reached since August 2016. So why are our rates on the rise? We have more lenders on our platform than ever, and our lenders are, on average, funding more into their Lending Works accounts than ever before too. However, the change has actually come on the other side of the equation - we are rapidly growing our loan origination volumes; or, simply put, more high-quality loan customers want to take out a loan with us.
Unlocking new channels of loan origination
For the past 24 months, we have focused intensively on two things: making our software better so customers are more likely to use Lending Works, and integrating with more partners through which customers can access our platform. As a result, we are approving vastly greater volumes of loans for creditworthy customers each day.
The nature of a platform like ours is such that the challenge of balancing the supply of lender capital with demand for loans from borrowers is an ongoing one, and fluctuations in rates tend to be indicative of the status quo of this equilibrium. We expect to issue over £5 million in loans this month for the first time ever. And, with a number of new partnerships set to launch in the coming months, we expect that figure to double to £10 million per month by mid-2018.
Smashing records; mitigating risks
However, in order for us to break new ground in this manner, we need a little bit of help from investors like you. Fortunately, the gains are mutually beneficial. Not only will you reap the rewards of our tremendous five-year returns, but your money will also be matched with creditworthy borrowers in just a few days (given the current shorter lending queue), so your money will start working for you almost immediately – and enable you to stay one step ahead of inflation (currently 2.9 per cent).
Of course, it's important to remember that peer-to-peer lending is not a savings product. Capital is at risk, and not protected by the Financial Services Compensation Scheme. In order to help mitigate these risks, we developed the Lending Works Shield; a threefold lender protection model which includes a unique insurance that covers some of the key reasons for borrowers defaulting, and a reserve fund to cover missed loan repayments.
Seize the day - grow your money with us
In short, there really has never been a better time to lend your money through our platform. At a time when savers are seeing their rainy-day funds eroded (in real terms), and investors are navigating stock market volatility, P2P offers a credible alternative which strikes a sweetspot between risk and reward that is hard to beat. The latest uptick in returns only underscores this further. Now is the time to get more bang for your buck, and Lending Works is the place to do it.
Our website offers information about saving, investing, tax and other financial matters, but not personal advice. If you're not sure whether peer-to-peer lending is right for you, please seek independent financial advice, and if you decide to invest with Lending Works, please read our Key Lender Information PDF first.
Since opening our doors back in 2014, we’ve always prided ourselves on living and breathing two key principles at Lending Works: innovation, and putting the customer first in everything we do.
With the retail sector enduring its fair share of challenges, companies are looking at new ways to attract customers, and drive conversion. In an overcrowded, dog-eat-dog marketplace, with behemoths such as Amazon flexing their muscle, it’s easier said than done.
On 4 June 2019, the Financial Conduct Authority (FCA) released its new regulatory framework for peer-to-peer lending (P2P); a Policy Statement known as PS19/14. As you might imagine, it's a document which, following a three-month consultation, is a hefty read of no fewer than 102 pages.
In a difficult climate, customer acquisition and lead generation present stern challenges for UK retailers, and a great deal of marketing spend invariably gets directed towards getting feet through the door.
Over the last decade, there can be little dispute that the reputation of mainstream banks – and particularly the so-called ‘Big Four’ (HSBC, Barclays, Lloyds and RBS) – is at its lowest ebb.
The peer-to-peer (P2P) lending industry is now regulated by the Financial Conduct Authority (FCA). The regulatory framework has been designed to protect customers and promote effective competition.
Last week we took stock of the labour market, with the latest Office for National Statistics (ONS) data showing that the tide may be beginning to turn on Britain's so-called 'jobs miracle'. Unemployment ticked up to 3.9 per cent for June to August (an increase of 0.1 per cent), with the number of people in work falling by 56,000.
Whenever discussion turns to Britain’s misfiring property market, the words ‘stamp duty’ are seldom far away. Indeed, over the past two decades, it’s been something of a political football – one which has had a profound impact on both housing transactions, and the coffers at the Treasury.
In recent months, it’s been interesting to observe the reception to Greta Thunberg, the 16-year old climate change activist who has been afforded some high-profile forums. The impassioned viewpoints she has shared have earned her legions of fans, albeit no shortage of detractors too. In particular, a speech at the United Nations climate change summit stirred fractious debate.