How our IFISA works
Earn tax-free interest by lending to approved, creditworthy individuals through our Innovative Finance ISA (IFISA). It’s simple, fair peer-to-peer-lending.
Invest up to £20,000
Invest your full 2018/19 ISA allowance with us, or split your allowance across Innovative Finance, Cash, or Stocks & Shares ISAs.
Transfer any existing ISA
Easily transfer your existing ISAs with help from our dedicated customer service team. Transfers don’t contribute to your annual ISA allowance.
Earn tax-free interest
Earn 6.0% p.a. on 5-year loans, or 4.5% p.a. on 3-year loans. Take loan repayments as income, or reinvest automatically for maximum returns.
- 1 Create your account
- 2 Open your ISA
- 3 Choose your rate
- 4 Transfer money
- 5 Earn tax-free interest
Interest rates shown are annualised, and assume loan repayments are reinvested at the same rate and any bad debt is covered by the Lending Works Shield.
Projected returns are not guaranteed. As with all investments, your capital is at risk.
After researching, Lending Works offered the best balance of competitive returns and credible protection to me.
Investor since 2014
How we reduce risks
An Innovative Finance ISA is an investment. That means your capital is at risk and returns aren’t guaranteed. And remember, the Financial Services Compensation Scheme (FSCS) doesn’t cover poor investment performance, just like with bonds or shares.
That said, we reduce the risk wherever possible. Here’s how.
The Lending Works Shield combines a reserve fund that covers every consumer-funded loan, with unique insurance against the primary causes of borrower default.
We believe it’s the strongest protection of any unsecured peer-to-peer-lending platform. Learn more
Your investment is split between many borrowers. It’s naturally diverse, with much lower volatility than stocks and shares.
Figures relate to retail investors only (excluding institutional investors). Includes both ISA and non-ISA investors.
Reference period: 01/01/2014 to date; Source: Internal monitoring data.
Past performance is not a reliable indicator of future results, and returns aren’t guaranteed.
Accessing your money
Accessing your money is easy. Set up a regular income, or withdraw your money early (provided we can find other investors to take on your loans).
For a 0.6% fee, you can withdraw your money early, provided other investors are available to take on your loans.
Choose interest-only or capital-and-interest income to meet your goals. Get paid weekly or monthly.
Frequently asked questions
Who can open a Lending Works ISA?
To open an ISA with Lending Works, you must be aged 18 or over and resident in the UK (or a Crown servant or their spouse or civil partner).
How much can I invest into my Lending Works ISA?
You can invest up to £20,000 of new ISA funds for the 2018/19 tax year (6 April 2018 - 5 April 2019) and any income earned on those funds will be tax-free. You can also reinvest repayments on your loans without those counting towards your annual ISA subscription limit. In addition, any money you've saved or invested in ISAs from previous tax years can be transferred into your Lending Works ISA free of charge and won't count towards your annual ISA subscription limit.
Can I withdraw money from my Lending Works ISA?
You can withdraw money from your Lending Works ISA, or transfer money to another ISA provider, provided the funds are available in your Wallet i.e. not on loan or allocated to borrowers. If your money is still on loan, you'll need to reassign your loans using the Quick Withdraw facility before the funds will be available for withdrawal.
Note: replacing cash you've withdrawn from any non-flexible ISA will still count towards your annual ISA subscription limit.
How many ISAs can I have?
You can only subscribe i.e. save or invest new ISA funds into one ISA within each ISA category (cash, stocks & shares and innovative finance) each financial year. For example, once you've subscribed to a cash ISA in the current tax year, you won't be able to subscribe to another cash ISA until the start of the following tax year. The same applies to stocks & shares and innovative finance ISAs.
Note: these restrictions only apply to new ISA funds i.e. those saved or invested in the current tax year. You can transfer any money you've saved or invested in ISAs from previous tax years to as many ISAs as you like, provided the new ISA provider accepts transfers.
What is the Personal Savings Allowance?
Before dipping into your ISA allowance, it’s worth considering whether you're eligible for tax savings via the Personal Savings Allowance (PSA) first. With the PSA, basic rate taxpayers will be able to earn tax-free income (on both savings accounts and peer-to-peer platforms) of up to £1,000 each year, while for higher rate taxpayers this figure drops to £500. Unfortunately, additional rate taxpayers are not eligible for the PSA.
Click here for all the key regulatory information about our IFISA
3) Projected rates are not guaranteed and forecasts are not a reliable indicator of future performance. The value of your investments could fall as well as rise and you may get back less than you invest. Lending Works is not covered by the Financial Services Compensation Scheme (FSCS).
4) You may subscribe up to £20,000 into ISAs in the current financial year (2018/19). Lending Works only offers an Innovative Finance ISA. You cannot subscribe to more than one ISA in each category in each financial year. The categories are Cash ISA, Stocks & Shares ISA and Innovative Finance ISA.
5) To place funds in an ISA, you will need to open an ISA account with us and agree to our ISA terms and conditions.
6) You can withdraw or transfer your ISA at any time, provided your ISA funds are held as cash in your ISA account. If any funds are still on loan under loan agreements, you will not be able to withdraw or transfer them unless you exit the loan agreement(s) early using Quick Withdraw. Quick withdraw is subject to a fee and liquidity is not guaranteed. If you withdraw any ISA funds you will lose any ISA taxation benefits on those funds and you will not be able to replace them. You must only request a transfer using the designated transfer process made available to you. You must not make this transfer yourself by withdrawing the funds and sending these to the new ISA manager. This could result in the loss of ISA tax benefits on those funds.
7) You cannot transfer existing loans from your Classic Account into your ISA Account.
8) If a borrower fails to make a repayment we will take all required steps to collect any amounts outstanding. However, repayment from borrowers is not guaranteed. Typically, your returns will not be affected by late payments or defaults on your loans as the Lending Works Shield will step in and make the missed payments to you instead. However, the Lending Works Shield is not a guarantee against investment losses and your capital is at risk. If you do not receive repayment from a borrower and the Lending Works Shield is unable to make payment to you in respect of that missed payment, you may lose some or all of your interest and capital. In respect of that loan, no deduction can be made from your Annual ISA Limit, even where you have received no income or profit from the loan.
9) In the unlikely event that the Lending Works platform ceases to operate for any reason, for example in the event of firm failure, the management, servicing and collection of all outstanding loans would be transferred to a third party back-up service provider with whom we have in place a back-up servicing arrangement. Our obligations as an ISA Manager would also be performed by our back-up service provider. Your loan agreements will remain enforceable and you will not lose the ISA status of funds in your ISA Account.
As with all investments, your capital is at risk.