A newly minted RATE LOCK product will offer investors a fixed 5% per annum over 3 years or 6% p.a. over the next 5 years. The offer is available until March 1st. The RATE LOCK doesn't stray too far from the platform’s core product – a peer-to-peer consumer loan sheltered by the three-fold protection of its innovative “shield” cover. The only difference is the fixed premium interest rate on offer.
For context, Lending Works’ 3 year loans typically provide returns in the 4% to 4.5% range. But the RATE LOCK will not prevent investors from benefiting in the event of an organic rise in interest rates. If rates topped 5% on 3 year term loans across the platform, RATE LOCK purchasers would also see their yield increase.
Rate locks appear to be a central aspect of Lending Works’ strategy for 2015 – with the platform having hinted that this one is to be the first of many. The purpose of the innovation is to provide lenders with peace of mind; an assurance that their rate will not drop off. The product has been tailored to savers that have exhausted their ISA allowances and/or people looking inject a bit of life into their pension income.
Nick Harding, Founder and CEO of Lending Works, weighed in:
“At Lending Works, we only lend money to the top 10% of creditworthy borrowers and it is from these people that we are seeing unprecedented demand for long-term loans. This makes it a great time for us to offer the sorts of interest rates you can’t find elsewhere to customers who have the funds available to lend to our high-quality borrowers.
“Lending Works lenders’ money is never idle. It is allocated across a portfolio of borrowers efficiently, meaning that the opportunity to benefit from these chart-topping rates begins immediately.
“Our first Rate Lock offer was launched to celebrate our first birthday. 2014 was an exceptional year for Lending Works. By continuing to offer top rates to UK lenders, 2015 looks set to be even better.”
