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Peer to Peer borrowing and lending with Lending Works
Things have been a bit tight in our household since my husband had an accident leaving him unable to work. Where my writing used to pay for the icing on the cake now I rely on it to keep bread on the table. Except not bread 'cause I am trying to eat a diabetic friendly low carb diet but you get what I'm saying!
In this financial environment even my friends who are working find it hard to pay out larger sums at short notice which can be frustrating when you suddenly need a new washing machine, a new(er) car or want to snap up that dream holiday bargain you spotted in the travel agent window or your email inbox!
Traditionally applying for a loan often meant entering the hushed and hallowed halls of the bank, or scouring the internet trying to avoid the virtual loan sharks. These days there is a new alternative - peer to peer lending sites. Here's how it works.
Peer-to-Peer lending, also known as marketplace lending, involves of the direct matching of lenders and borrowers via a peer-to-peer lending platform. This often enables lenders to enjoy better returns than those offered by their savings account or ISA, and borrowers to take out lower cost loans without the fees charged by traditional financial institutions. By cutting out the large financial institution in the middle, lenders often receive great returns and borrowers can receive low cost, flexible personal loans. There are no banks, no big bonuses and no sneaky fees. Peer to peer lending is growing in popularity in the UK and worldwide - you may have seen TV adverts trying to explain how it works.
Here's my take on it -Peer-to-peer lending platforms like Lending Works match lenders with creditworthy personal loan borrowers, so both receive a much better deal.
A spokesman for Lending Works explained:"Lending Works was founded with the belief that financial services should be fair again by giving the consumer control of their finances. Lending and borrowing directly from each other benefits real people, not the bank."
There are still some basic rules of course- to sign up to Lending Works you must be a UK resident, be over 18 with a UK bank account. Borrowers have to be at least 21 years old and the organisation will check you are creditworthy and can afford to repay your loan.
Lenders are covered by an insurance scheme which helps protect against borrowers defaulting, fraud and cybercrime. (reassuring to know as the organisation and others like it are not banks and not covered by the FSCS guarantee scheme)
There is lots more information about Lending Works on their website- the company's popularity is rising week on week, including people borrowing money for engagement rings and the subsequent weddings and retirees wanting a better return on their capital.