Money – it’s often something all of us struggle with, sadly in comes in one hand and goes straight out the other, trust in banks is by many, at an all-time low and pay day lenders often charge a fortune in interest, should you need something to see you through.
So what do you do if you have a little extra money and want a good return or have a good credit history and need to lend a little money, perhaps to see you through a holiday, get married or buy a new computer?
Well that is where p2p lending comes in, it allows you to either lend to or borrow from your peers and with Lending Works they make sure that everyone involved is as safe as can be.
So how does it work for lenders?
When you lend via Lending Works your money is not going to just one person, it is being split between a number of vetted borrowers, so should something go wrong hopefully the risk is minimal. However should the worst happen you are also protected by the Lending Works Shield which not only includes a special insurance but also a reserve fund that helps cover lenders against missed payments and they are the only p2p lender that offers such protection.
So what is the return like on your money? Well you can get up to 6.4% if you are happy to lend over a 5 year period.
How does it work for borrowers?
To give you an idea about how much it may cost you to borrow via Lending Works, they offer a quick guide where you just slide the bar to indicate how much you would like to borrow and over how long of a time period. However this isn’t definitely the deal you would be offered, to find out your personal quote, you need to fill in some details so Lending Works can get more of a picture about you.
Personally I think this is a great way to both earn interest on any spare money you have, while helping out others around the UK who may need a bit of a leg up. When it comes to borrowing I would feel much better knowing I was helping a fellow peer, rather than lining the pockets of yet another banker.
What do you think of the sound of peer 2 peer lending, could you see yourself lending or borrowing via it?
