Lending Works rebrands product suite
LENDING Works has updated its two flagship investment products with a slew of new features, in response to user demand.
Effective immediately, the peer-to-peer consumer lender’s three-year account has been renamed as the Flexible account, and it will now come with no exit fees for early withdrawal. Previously customers were charged 0.6 per cent of the amount they want to sell.
Before exiting a loan, investors will still need to find new investors to purchase their loans, but once that has been done, the money will be in the customer’s bank account within 24 hours. Lending Works will also cover any discount if the current investor rates are higher than those on their loans.
Lending Works’ five-year account has been renamed as the Growth account, and it has been updated to offer higher returns and lower resale fees. Investors will now pay just 0.5 per cent for selling loans to access their investment early, down from 0.6 per cent.
In both accounts, investors can choose to invest across loan terms ranging from two months to 60 months, rather than being tied into a three-year or five-year term.
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“We’ve listened closely to feedback from our customers, and also conducted extensive research into market trends,” said Robbie Humphreys, Lending Works’ lead product manager.
“The clear message was that investors value the flexibility to either invest short-term, or have easier access to their money in the event of a change in circumstances.
“We wanted to develop a more competitive, innovative product catalogue and by providing a clear contrast between our two primary investment options, we’ll be in a strong position to cater for the needs of a wider range of investors. It further underscores our ongoing commitment to innovation, and to making P2P lending a simpler, more accessible investment choice for the typical UK consumer.”
Investors who currently hold funds in Lending Works’ three-year account will be automatically migrated to the Growth product and will not benefit from fee-free access. However, the platform added that any repayments will be reinvested into the Flexible product, unless otherwise instructed, meaning that this portion of the investment can be accessed free of charge.
Lenders who use the five-year account will see their funds automatically migrated to new Growth product, and will see no substantial changes other than the reduced withdrawal fee.
New investors can access the new Flexible and Growth products from Tuesday, while existing investors will be migrated to the updated products in August.