It’s almost impossible to think of a world were we don’t live with some sort of debt, yes I’d love to be in a position where I am completely debt free – although I’m pretty sure with student debts that day is quite a few decades away! Borrowing money use to be a very traditional affair: you’d go to bank, ask for a loan and then wait to see if they had approved the lending. However nowadays there are more and more different ways to access money.
A fairly new concept to become and increasingly more viable option is peer to peer lending; which while it may as a principal have been around for many years (anyone familiar with the bank of Mum and Dad?!) it hasn’t been without risk for those lending the money.
From thinking we were moving house at the beginning of the year and all the associated costs that come with that to now staying put in our current home and embarking on a refurbishment there are always going to be costs that both planned and that just crop up. The flexibility of unsecured loans is great for family life when costs and plans change.
Lending Works is the first peer-to-peer lending who offers insurance against borrower defaults which gives peace of mind to those who are the lenders. It also has a clear, easy to understand application process that helps put applicants in charge of their finances. With options to borrow £1000 to £25000 over a period of anything from 1 year to 5 years, the personalised quote takes a few minutes, doesn’t affect your credit score and once approved the loan can be paid with two working days.
So it all sounds very much like a bank, however with fixed rate, low interest and no hidden fees that are often associated with retail banks, Lending Works really has shaken things up in the world of lending money.
As you probably guessed with peer-to-peer lending there are two sides to the lending story; there are the applicants who can borrow money in a way that suits their circumstances and affordability and then there are also the lenders who are offered great returns (5.1% over three years), with total peace of mind – you don’t need to be a financial advisor to recognise that rate of return as something to sit up and take notice of.
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