Lending Works Review | www.lendingworks.co.uk

Lending Works

About…
Address: 60 Gray’s Inn Road, London, WC1X 8AQ.
Branding: Lending Works. AKA: LendingWorks.
FCA Licence: 658315.
From: Lending Works Ltd.
Launched: 2012.
Memberships: P2PFA.
Related: No companies.
Website: www.lendingworks.co.uk.

Loan Details…
Available: Monday to Friday (9am/5.30pm).
Bad Credit Considered: Fair-to-good score required.
Manage: Lending Works login provided via www.lendingworks.co.uk.
Offers: Personal loans.
Sums: £1000 to £25,000 (new and returning).
Terms: 12 to 60 months.

The Pricing…
£114.08/£1000 (12)
£154.16/£1000 (24)
£423.56/£10,000 (12)
£598.40/£10,000 (24)

Notes: APR rates from top to bottom flow as 22.5%, 15.1%, 8% and 5.8%. Decisions are provided within 1 working day and funding once approved arrives on the following working day. There is no ability to speed up this process at a cost that has been seen with other P2P companies. To apply you will need to be at least 20 years of age.

Noteworthy…
– Amounts: The common £1k to £25k range is seen here.
– Growth: When searching a selection of the major peer-to-peer loan related keywords in Google it was either this company or Zopa commanding the top spots. Rapid sector growth has clearly been enjoyed by this company who have only been actively trading since 2012. The actual volume of search engine queries made for them isn’t significant at this time, but this would likely change over the coming years.
– Invest: Long term lenders can see a potential 6.1% return. This is backed up by The Lending Works Shield that is designed at the outset to underwrite thoroughly, there is then a Reserve Fund that covers missed loan repayments and there is also insurance cover that protects against defaults. The addition of insurance was actually a first in this sector. When scanning through their statistics, the Reserve Fund only contained around £256k. The defaults were however just 0.51% for 2014 and 0% so far in 2015. The predicted rate was 1.54%. Their rates are impressive, but they are likely to increase as they build up a large network of users. The added protection in place is a great incentive to join the lender pool, especially with that impressive 6.1% rate.
– Pricing: Good overall value, more so over longer periods. There is a clear difference between the 1 and 2 year P2P loan APRs as seen in the pricing examples above.

Updates…
– Owner previously traded as Social Mint Ltd.

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