Rates, fees and repayments

  1. Annual Percentage Rate (APR)

    The APR is the annual rate that is charged for borrowing and should be used to help compare different finance products. 

    It takes into account the interest charged as well as any additional fees you'll have to pay. It also considers the frequency with which interest is charged on your borrowing, as this has an impact on how much you'll pay as well.

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  2. How we determine your APR

    We use a risk model to determine the price of a loan for each individual applicant. We consider all of the data and information at our disposal to assess how likely it is that you will meet all of your loan repayments on time.

    To do this we also look at various key characteristics – for example our experience shows that the risk of default is lower for a homeowner, and therefore the APR we offer will likely be lower. At the other end of the scale, applicants who display signs of a transient nature - for example renting at a number of different addresses over the past few years - are inherently riskier and therefore the cost of their loan will be higher.

    The APR on your loan includes all interest and fees payable on your loan, so can be easily used for comparison with other loans.

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  3. Fees

    The fees payable on your loan will vary depending on the amount borrowed, the loan term and your risk category. All fees will be clearly set out in your personalised quotation and in your final loan offer. The fees on your loan comprise:

    • A fee payable to Lending Works to cover our operational overheads
    • A fee payable to the Lending Works Shield, which protects our lenders against missed payments and loan defaults

    We do not charge any fees if you make overpayments on your loan, or settle your loan early, unlike most lenders. We just think that's fair.

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  4. What happens if I miss a repayment?

    If you miss one or more payments, and after making contact with you we're still unable to recover the funds, your case may be handed over to our debt collection partner. You may then be subject to further charges as set out in your credit agreement.

    If we decide to pass your account to our debt collection partner they will add any fees and charges to the overdue sum. The total of the principal, any unpaid interest and any fees and charges will be payable by you.

    Further fees may be added to your debt if any of the following services are required:

    • Field agent collections
    • Tracing
    • Debt counselling
    • Litigation
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  5. If you have difficulty with your repayments

    If you are struggling to keep up with your monthly loan repayments, or anticipate that this could be a problem in the near future, the most important thing to do is to contact us straight away and explain your situation. We will help in any way that we can, although it is important that we are made aware of your personal circumstances. You can find out more about what to do in this situation by clicking here.

    Lending Works does not provide financial advice as such, however there are a number of organisations that can help if you are having financial problems.  The following organisations provide this service free of charge:

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