London’s Lending Works startup has added a monthly fixed income tool, along with an income calculator, in a bid to tempt people away from other forms of saving.
The company has proved particularly popular with savers over the age of 55, representing more than half of those people who are offering their savings to be loaned out to others on the platform. The company is also offering a complimentary bonus of 1% to the money people lend in April, if they’re over the age of 55 of course, as well as dedicated phone line for new savers to help them get to grips with the online dashboard.
Given that Chancellor George Osborne has enabled 5 million pensioners in the UK to exchange their regular annuity income for a one-off lump sum, there could be plenty of pensioners looking for places to put their new-found wealth.
Matt Powell, director of Lending Works, which launched in January last year, said: “More than 50% of our lenders are 55 or over already so there’s certainly appetite in the pensions market for alternative finance options that offer great interest rates, flexible income, access to your capital if needed and secure online management. With interest rates generally in the region of 5% to 6 % per annum, P2P trumps even the best-buy annuities available in the UK market.”
Lending Works has forecasted that it will loan £25m this year.