The ideal ISA for over-60s

Earn tax free interest by investing in creditworthy people.
Earn 6.0% p.a. over 5 years, 4.5% p.a. over 3 years.
Draw income, tax free and with no fees.
Enjoy exceptional protection from the Lending Works Shield.

Register in 2 minutes, then open your ISA in just a few clicks.

What is the Lending Works ISA?

Peer-to-Peer lending connects creditworthy borrowers seeking personal loans with people who are happy to lend them money. As the investor you then earn a portion of the borrowers’ repayments on top of your initial investment – meaning you get a much greater return than a traditional savings account would offer.

The Lending Works ISA was launched in February 2017 as part of the new Innovative Finance ISA scheme. Under this wrapper, investors are able to shield their Peer-to-Peer income from tax.

Market-leading investor protectionIs Peer-to-Peer lending safe?

As with any form of investment there is a risk involved, however, we take great pride in the fact that no investor has ever lost a single penny, and we work hard to ensure that never changes.

Our first priority is to ensure loans are only written for those who can afford to pay them back. We combine years of industry expertise with innovative technology to make a final decision on who we will lend your money to.

In the unlikely event a borrower does default, we’ve still got you covered. We maintain a reserve fund which is used to compensate our lenders should a borrower default – or simply go into arrears - for any reason.  Your investment is also spread across many borrowers – this ensures that, even if a borrower does default, the risk is minimised.;

Finally, we also avail of a unique insurance which covers your investment in the event of borrower default for common reasons such as accident, illness, unemployment or death, or even criminal activity such as fraud or cybercrime.

Overseeing your ISA transfer

Transferring your ISA may seem tedious, but our dedicated, experienced customer service team are on hand to ensure the process is a seamless one for you. .

We’ll initiate the transfer process with your existing ISA provider within 24 hours of receiving your ISA transfer form. Thereafter, you can expect the transfer to be completed within 15 days. We’ll also keep you updated every step of the way.

Best P2P Platform for SaversBest P2P Platform for Savers - two years in a row

Lending Works was named as the Best P2P Platform for Savers for the second year in a row at the 2017 Moneywise Customer Service Awards. The awards are voted for by the public, and in 2017 nearly 50,000 consumers cast their votes which confirmed Lending Works as the best P2P platform for savers.

So if you’re interested in investing in a Lending Works ISA, please get in touch with our award-winning customer services team by or phone (020 7096 8512).

What our customers say

After researching, Lending Works offered the best balance of competitive returns and credible protection to me.

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 2017/18 tax year (6 April 2017 - 5 April 2018) 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.

Do you charge fees for lending?

No fees are charged to anyone who lends through the Lending Works platform.

The only charges you may incur are in the event of withdrawing funds, which are on loan, early. In that instance there is an administration charge of 0.6% of amounts withdrawn or £20, whichever is greater, and if the interest rates have changed since your loan was made you may have to pay the additional cost derived from this rate change. These fees will be taken from the money that you are withdrawing and will be clearly stated at the time of request.

What happens if a borrower misses their payment or defaults on their loan?

If a borrower misses a loan repayment, the Lending Works Shield reserve fund will step in to make the payment on their behalf, provided there are sufficient funds available. We will attempt to recover the payment from the borrower and, if successful, the funds will be transferred back into the reserve fund.
If a borrower defaults on their loan, the process is the same. If possible, a claim will be made on one of the Shield's insurance policies. The insurance policies protect against some of the key reasons for borrowers defaulting such as loss of employment, sickness, accidents and death.

Can I get my money back when it is still on loan?

Provided we can find other lenders to replace you, you can reassign your loan agreements to access your money early using the Quick Withdraw facility. The outstanding funds will be returned to you and will be available to withdraw.

There is a small fee for using Quick Withdraw of 0.6% of amounts withdrawn or £20, whichever is greater, and if the interest rates have changed since your loan was made you may have to pay the additional cost derived from this rate change. These fees will be taken from the money that you are withdrawing and will be clearly stated at the time of request.

Will I have to pay tax on my P2P income?

The interest you receive from borrowers is taxable, however whether you are required to pay any tax depends on your personal circumstances.

Please note: The tax treatment of your income depends on your individual circumstances and may be subject to change in the future. Find out more in our Quick guide to paying tax on P2P income. Peer-to-peer lending is also afforded certain tax exemptions courtesy of the Personal Savings Allowance, along with the Innovative Finance ISA.

Important information
1) Interest rates shown are annualised, assume that loan repayments are reinvested at the same rate and any bad debt is covered by the Lending Works Shield.
2) As your ISA Manager, we will report to HMRC in relation to your ISA Account as required under the ISA Rules. However, you will remain responsible for dealing with your own tax affairs, filing your tax returns and payment of any tax due on your interest. The tax treatment depends on your personal circumstances and is subject to change in the future.
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.