Don't invest unless you're prepared to lose money. This is a high-risk investment. You may not be able to access your money easily and are unlikely to be protected if something goes wrong. Take 2 minutes to learn more.

Authorised & Regulated by the FCA (UK) 782496

support@lendwise.com

+44 (0) 20 3890 7270

About us
Invest ▼
Investing with Lendwise Start lending Key Investor Information
Lendwise ISA»
Lendwise IFISA Information ISA Transfers IFISA Guide
AutoLend Loan Statistics
FAQ»
Risk Diversification Lending with Lendwise Secondary Loan Marketplace Tips on diversification Calculating returns
Borrow ▼
Borrower Information Get a free quote
Our Loans»
Personal Loan Graduate Degree Loan (MBA, MSc, MA, LLM, etc.)Refinance Private Student Loan to Lendwise Training Course/Bootcamp Professional Qualification International Student Loan (MBA/Masters)Graduate Life Start Loan School Fee Loan Parent Loan SQE1 – SQE2 Fees Loan
FAQ»
Applying for a Lendwise Loan Interest Rates Loan Repayments Late Payment Information Universities We Support
Help
Blog
Contact us
Sign in

About us
Invest »
Borrow »
Help
Blog
Contact us
Sign in

Category: P2P Lending

Are ISAs Worth It?

Posted on 15/03/202421/10/2024

As we step into 2024, many individuals are contemplating whether ISAs remain a viable option for their financial goals. Is it?

5 Reasons You Should Invest In An ISA At The Beginning Of The Tax Year

Posted on 19/05/202226/11/2024

Now we’re in the 2022/23 tax season, we look into 5 reasons you should invest in an ISA at the beginning of the tax year.

Create A Free IFISA Account And Finance Postgraduate Student Loans

Posted on 05/05/202221/10/2024

Investors can now open an Innovative Finance ISA (IFISA) with Lendwise and earn up to 9% p.a. in tax free interest.

What Is The Lendwise Secondary Marketplace?

Posted on 08/07/202119/11/2024

Lendwise’s secondary marketplace is a feature that allows a lender to potentially realise liquidity earlier than the maturity of their loan investments.

Diversifying Your Risk With The Help Of The Lendwise AutoLend Feature

Smart Risk Diversification: Lendwise AutoLend

Posted on 10/06/202111/07/2024

Diversify your investments for better returns and reduced risk. Build a balanced portfolio with Lendwise AutoLend feature.

An Investor’s Guide To Peer-To-Peer Lending

Posted on 14/05/202110/06/2024

Peer-to-peer (P2P) lending involves matching someone who wants to lend their money with someone who wants to borrow money.

Search

Search for:

Credit Score Explained
Education
Investing In Education
ISA
Lendwise Partnerships
P2P Lending
Personal Finance
Student Experiences
Student Finance
Student Life
Uncategorized

Share your story

We are happy to feature student voices on the blog. If you are a recent postgraduate and would like to guest post for us please get in touch.

Request a topic

Is there a subject you would like to read more about, or a question that we haven’t covered?

Send us an email

Borrow

Borrower Information

Get a quote

Invest

Investing with Lendwise

Lendwise Ltd
3 More London Riverside
London, United Kingdom
SE1 2AQ

Lendwise Ltd is authorised and regulated by the Financial Conduct Authority under firm registration number 782496. Lendwise Ltd is not covered by the Financial Services Compensation Scheme. Registered in England (Co. No. 10466048) with registered office at 3 More London Riverside, London, United Kingdom, SE1 2AQ. Registered with the Office of the Information Commissioner (No. ZA281795).

Legal Terms and Policies

Estimated reading time: 2 min

Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.

What are the key risks?

You could lose the money you invest
- Many peer-to-peer (P2P) loans are made to borrowers who can’t borrow money from traditional lenders such as banks. These borrowers have a higher risk of not paying you back.
- Advertised rates of return aren’t guaranteed. If a borrower doesn’t pay you back as agreed, you could earn less money than expected. A higher advertised rate of return means a higher risk of losing your money.
- These investments can be held in an Innovative Finance ISA (IFISA). An IFISA does not reduce the risk of the investment or protect you from losses, so you can still lose all your money. It only means that any potential gains from your investment will be tax free.

You are unlikely to get your money back quickly
- Some P2P loans last for several years. You should be prepared to wait for your money to be returned even if the borrower repays on time.
- Some platforms may give you the opportunity to sell your investment early through a ‘secondary market’, but there is no guarantee you will be able to find someone willing to buy.
- Even if your agreement is advertised as affording early access to your money, you will only get your money early if someone else wants to buy your loan(s). If no one wants to buy, it could take longer to get your money back.

Don’t put all your eggs in one basket
- Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well.
- A good rule of thumb is not to invest more than 10% of your money in high-risk investments.

The P2P platform could fail
- If the platform fails, it may be impossible for you to collect money on your loan. It could take years to get your money back, or you may not get it back at all. Even if the platform has plans in place to prevent this, they may not work in a disorderly failure.

You are unlikely to be protected if something goes wrong
- The Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover investments in P2P loans. You may be able to claim if you received regulated advice to invest in P2P, and the adviser has since failed. Try the FSCS investment protection checker here
- Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated platform, FOS may be able to consider it. Learn more about FOS protection here

If you are interested in learning more about how to protect yourself, visit the FCA’s website here

For further information about peer-to-peer lending (loan-based crowdfunding), visit the FCA’s website here

We use cookies and similar technologies to operate and improve our site, measurement and analytics, as well as advertising. Learn more about cookies

Cookie Settings Accept All Cookies

Manage consent

Cookie Preferences (Controlled Consent)

Please select which types of cookies you want to be stored on your device.

Functional cookies

Always Enabled

These cookies are essential for the running of our website. Without these cookies our websites would not function properly. These are saved temporarily as login information and expire once the browser is closed.

Analytical cookies

The information provided by analytical cookies allows us to analyse patterns of visitor behaviour and we use that information to enhance the overall experience or identify areas of the website which may require maintenance. The information is anonymous (i.e. it cannot be used to identify you and does not contain personal information such as your name and email address) and it is only used for statistical purposes. Behavioral cookies are similar to analytical and remember that you have visited a website and use that information to provide you with content which is tailored to your interests.

Marketing/Promotional cookies

These cookies are used to track visitors across websites. The intention is to display ads that are relevant and engaging for the individual user and thereby more valuable for publishers and third party advertisers.

Preferences cookies

Preference cookies enable a website to remember information that changes the way the website behaves or looks, like your preferred language or the region that you are in.

SAVE & ACCEPT