How it works
When you invest with Lending Works, you lend your money directly to creditworthy borrowers. It’s called peer-to-peer lending.
Personal loans to real people
You'll invest only in personal loans to creditworthy individuals who pass our rigorous approval process.
Invest for 3 to 5 years
Earn 4.5% p.a. on 3-year loans, or 6.0% p.a. on 5-year loans. Take loan repayments as income, or reinvest automatically for maximum returns.
Start with just £10
Invest as much as you like, as often as you like, starting from just £10. Whatever you invest, you'll always get our best 3- or 5-year interest rate.
Meet the borrowers
Interest rates are annualised, assuming loan repayments are reinvested at the same rate, and any bad debt is covered by the Lending Works Shield. You are responsible for paying any tax due on your interest.
After researching, Lending Works offered the best balance of competitive returns and credible protection to me.
Investor since 2014
Peer-to-peer lending 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 with unique insurance against borrower default.
It's not a guarantee against loss, but we believe it's the strongest protection of any unsecured peer-to-peer lending platform. Learn more
Your investment is automatically split across many loans. It's inherently diverse, and much less volatile than stocks and shares.
Reference period: Since launch in 2014 to date; Source: internal monitoring data.
Past performance is not a reliable indicator of future results, and returns aren’t guaranteed.
Lending Works has improved the protection given to investors by launching extended insurance for all its loans.
Accessing your money
Accessing your money is simple. You can draw a regular income, or withdraw your money early, provided that other investors can be found to take over your loans.
It’s easy to withdraw your money early. For a 0.6% fee, we’ll find another investor to take on your loans.
You can withdraw your investment as weekly or monthly income. Choose interest-only or capital-and-interest income to suit your needs.
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 (2017/18). 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 who is also an authorised ISA manager. Your loan agreements will remain enforceable and you will not lose the ISA status of funds in your ISA Account.
AS WITH ALL FORMS OF INVESTMENT, YOUR CAPITAL IS AT RISK.