Lending Works Review

Lending Works Review (UK Lender) 

(4.5 / 5)

– Updated September 2018

Lending Works review, based on my ongoing lending experiences. Highlighting the positives and negatives of investing with one of the UK’s safest Peer to Peer lenders

Lending Works is another of the medium-large, (what I consider to be) safer P2P providers. Offering up to 6% returns on investment and little to no time required to manage. It’s another P2P company who are trying to be like a bank (always remember they are not a bank though, and as such your capital is at risk).

Obvious Investor Easy-Info Table

Overall Rating*: (4.5 / 5)
Who can invest:
Estimated Return:4.5% to 6.0% depending on account.
My Actual Return:6.01%
Risk Rating*:3/10 - Low   
Early Exit:Yes. Exit fee is the greater of 0.6% of the amount or £20
Min. Investment:£10 minimum classic accounts. £5000 ISA
Auto Invest:Yes
Manual Invest:No
Lending To:Borrowers
Loan Security:No
Provision Fund:Yes: Lending Works Shield. One of the best in the business.
Time to Invest:Medium: Can be up to 2 weeks depending on loan supply.
Time to Mange:None (auto-invest).
Lender Fees:No.
Amount Lent:£130m +
Number of Investors:5000+
Loan/Dflt Stats:Click Here for Stats
Regulated:Yes: FCA
Location:London, UK.   
Launched:Jan 2014
Cashback**:Yes! £50 Cashback! Click here for further information.
How to Sign Up**:Sign Up Here!

* My opinions on ratings and risk rating factors refer to my personal experiences with the lender. Plus factual data such as interest rates, loan types, security, platform history, default numbers etc.

**Please read our referral policy for more information on referrals & affiliate links.



Lending Works launched in January of 2014. In the 4 years or so they have been in business, they have lent almost £130m to consumers throughout the UK. They have almost 5000 active investors with an average account value of almost £22,000 per lender. Loans have an average diversification of 250 loans per lender.

Lending Works Shield

Lending Works protects its investors from bad debt and defaults in a few ways with it’s “Lending Works Shield”. The first is it’s reserve fund that covers every consumer-funded loan in case of late payments or default. Next is a very unique insurance policy that is backed by 3 of the UK’s largest insurance companies. Each with a balance sheet of more than £2bn. The insurance policy protects and pays the borrowers loan payments in the event of loss of employment, accident or sickness. Or in the unfortunate event of the borrower’s death.

Lending Works Screen Shot

The last part of the shield is diversification. Lending Works endeavors to ensure that each lender is diversified between many loans sufficiently so that no single default can seriously damage their portfolio. As do most of the auto-invest P2P companies. Another protection with Lending Works is that if there is a default that the shield somehow can’t cover and capital was to be lost (has never happened so far), the defaulted investments would be put in to a pool and each investor would be party to any losses. This takes away the focus from a few investors that were part of the loan. This is beneficial because it spreads to losses between thousands of investors. Instead of just a few having to take a big hit. Another point that Lending Works likes note is their rigorous borrower screening process and higher quality borrowers.


Lending works provides loans to consumers for personal loans, debt consolidation, car finance, home improvement, wedding loans and holiday loans among others. Most loans are unsecured. The Lending Works website is easy to use. You simply choose which account you want to lend with, the term, then put money in to the “offers” wallet, and that’s it! Don’t forget to set reinvestment to reduce cash drag.

Lending Works Screen Shot

Lending Accounts

Lending Works has 2 lending accounts. The first currently offering 4.5% return for loans up to 3 years. The second is a portfolio offering 6% for loans up to 5 years (as of August 2018).  In order to withdraw your money from Lending Works before the end of the loan agreement period will require a .06% payment.

It’s easy with Lending Works to see what loans you’re invested in:

Lending Works Screen Shot

However that’s all the information on the loan you get access to. I guess that’s ok though because as it’s all automatic investing through Lending Works, even if you had more information on the loan, what difference would it make because it’s not like you had a part in making the decision on investing in it.


I use Lending Works as part of my overall diversification strategy. Lending works are a safer, legit peer to peer lender. The loan return rate of 6% is very good considering their safety record. I also like that they mostly loan to consumers as most of the peer to peer lenders seem to be leaning more towards businesses. Business lending is inherently more dangerous than lending to consumers.



Click here to open an account New Customers receive a £50 cashback when they join Lending Works and invest £1000 or more! When you open an account using this link it helps me to run this website and write new reviews. Please read our referral policy for more info.




Thumbs Up


  • Safety – Lending Works is thought to be one of the safest P2P lenders in the U.K. To date, no lender has lost any of their capital, and the”Shield” always seems to cover all possible losses
  • Auto-Invest – means virtually no time managing investments. Just send your money over, decide which portfolio you would like to invest in (3 year or 5 year). Once your money is invested (can take a couple of weeks), set the reinvestment switch, and you can sit back and watch the interest come in!
  • Good Rates – from one of the larger, safer peer to peer companies, the ability to get as much as 6% (as of 08/18) is not too bad at all.
  • Website – the Lending Works website is very easy to use and understand. Some P2P websites leave a lot to be desired.
  • Large Investments – because the Lending Works loan book is big, it can easily gobble up large amounts of capital, again reducing cash drag for larger investors.
  • £500 minimum investment – if your portfolio is still small, it’s still easy to invest with Lending Works
  • Financial Conduct Authority (FCA) Regulated.
  • Innovative Finance ISA (IFISA) available for UK investors


Thumbs Down


  • Initial Investment Time – It can take a couple of weeks to get your money invested initially. Depending on how much money is in line before yours. Reinvestments (repayments from prior loans) are invested in the new loans before new money is invested. This is a good thing once your in to the system, but can slow things down a bit for a new investor.
  • Exit Fees  – Lending Works charge a .06% or minimum £20 (plus any difference in rates between current rates and the rates of the loan you are selling).  This can be seen as a bit of a negative, but where else can you get 6% return on your money and still be able to get out in an emergency?
  • Unsecured Loans – many (but not all) of the Lending Works loans are unsecured loans given to individuals or businesses, so if things were to go bad, you don’t have any collateral. In theory the Shield  should take care of defaults, so this shouldn’t matter. In practice though, no one will know how this works until we go though another recession.


Traffic Light - Low to Medium Risk                Lending Works Trust Pilot Reviw

RISK FACTOR – 3/10 – Low – Medium

I consider Lending Works to be on the lower end of the risk scale. The only thing stopping it from a lower rating is that many of its loans are unsecured. In most market conditions this is irrelevant, but in a severe recession it could come in to play. Either way, I have no worries about investing a significant portion of my income portfolio with Lending Works.




It appears that residents of most European countries with a U.K.  bank account (see review on TransferWise Borderless Account) can invest with Lending Works. Contact LendingWorks for further information.


Click here to open an account New Customers receive a £50 cashback when they join Lending Works and invest £1000 or more! When you open an account using this link it helps me to run this website and write new reviews. Please read our referral policy for more info.





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Lending Works Peer to Peer Lender Review
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