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Managing your loans

  1. Understanding your loans

    You can view a summary of your loan portfolio by clicking 'More' on your 'On loan' balance. You'll see the following information:

    • Start date: This is the date your loan chunk was acquired. This is typically the start date of the loan, however if you acquired a loan chunk mid-term this will be the date of acquisition.
    • End date: This is the scheduled end date of the loan. If the loan is repaid early, this date will change to the settlement date.
    • Loan ID: This is the unique loan chunk identifier.
    • Rate: This is the annualised interest rate under the loan contract i.e. your return.
    • Loan amount: This is the original amount of the loan chunk.
    • Capital repaid: This is the total capital repayments you've received on this loan.
    • Interest received: This is the total interest you've received on this loan. If you've acquired a loan chunk mid-term via Quick Withdraw you may receive some interest upfront before any capital repayment. You can read more about Quick Withdraw at the bottom of this page.
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  2. Receiving repayments

    Each month, borrowers make repayments on their loans and these are immediately transferred to you as the lender. Repayments are normally transferred into your Lending Works Wallet and will be available either to withdraw manually (see Transferring Money Out section), withdraw automatically (Auto Income) or re-lend to new borrowers (Auto Lend).

    Auto Income allows you to receive a pre-selected portion of these borrower repayments as an income direct to your bank account, should this be your preference. It is automated too, thus saving you the hassle of having to manually transfer the funds out of your Lending Works account each month. For more details about Auto Income, click here.

    With Auto Lend you can automatically re-lend any repayments received. We recommend using Auto Lend for two main reasons:

    • Manually re-lending your repayments is time consuming - we want to make lending money as simple as possible
    • In order to achieve the best returns possible you should keep your money lent out and not sat in your Wallet

    For more details about Auto Lend, click here.

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  3. How can I access money on loan?

    We understand that personal circumstances can change and you may need access to your funds sooner than you expected. Quick Withdraw allows you to access funds which are currently on loan by selling some or all of your loan chunks to one or more incoming investors. This provides you with additional flexibility, although does not guarantee instant access to your funds as it relies on other lenders being available to purchase your loan chunks.

    How long will it take to process my request?

    The time it takes to find replacement lenders may vary. However, provided there are sufficient funds in the lender queue, this should happen instantly. Once we have reassigned your loan chunks to other lenders, your money will be transferred back to your Wallet where it will be available for withdrawal.

    How do I use Quick Withdraw?

    To activate Quick Withdraw, please follow these steps:

    - Click on ‘Withdraw money’ from your dashboard
    - Click on the ‘Cancel active loans’ button (the third of the three options)
    - Choose how much you'd like to sell from the relevant loan term(s) and click ‘Next’
    - Check you're happy with the fees and confirm your request by clicking ‘Yes, cancel these loans’

    Transaction fees

    Flexible lending: Fee free early withdrawals by selling your loans, provided other other investors can take on your loans.

    Growth lending: For a 0.5% fee, you can withdraw your money early by selling your loans, provided other investors are available to take on your loans.

    Interest rate shortfall

    If the interest rates on the loan chunks you're selling are lower than the current Lending Works interest rates, you'll incur additional charges to ensure the lenders acquiring your loan chunks receive what they're expecting. Any such charges will be clearly stated before you complete the transaction.

    Accrued interest

    Any unpaid interest accrued on your loan chunks since the last repayment will be paid to you only to the extent it offsets any additional interest rate shortfall charges payable to the incoming lender(s).

    How we select which loan chunks to sell

    If you're only selling part of your overall loan portfolio, we'll try to minimise any interest rate shortfall charges wherever possible by selecting loan chunks with interest rates which are closest to the current Lending Works rates when processing your Quick Withdraw request. We'll also prioritise loan chunks with shorter maturity dates to minimise the length of time for which any shortfall might be payable.

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  4. Cancelling lending offers

    Cancelling unmatched lending offers

    You can view and manage your lending offers right up until they are allocated to creditworthy borrowers.

    If you have a change of heart, and decide you want to adjust either the amount of your offer or the term (or both!), you can! Simply follow the steps highlighted in the section above. Your funds will be returned to your Wallet where they will be available to make new offers or even transfer back to your bank account. Remember... if you cancel an offer and place a new one, you'll lose your place in the lending queue and re-join at the back. You can read more about the lender queue here.

    Cancelling matched lending offers

    If your lending offer(s) have already been matched with borrowers, then you will be unable to cancel the lending offer free of charge, and will need to go through the Quick Withdraw process. You can find out more on how to do this by clicking here.

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  5. Closing your lender account

    If you no longer wish to have an active account with Lending Works, you will need to ensure that all funds have been withdrawn, and that you no longer have any active Lending Offers. Subsequently, you will then need to transfer all money out of your Wallet. Once you have completed the above, you will then need to contact us so that we can close down your lender account for you. You can do this by either calling us on 020 7096 8512, or by sending an email requesting an account closure to cs@lendingworks.co.uk.

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