Peer to peer lending information

I have a huge interest in finances lately, I'm on a mission to increase my income and get saving to fund future plans. For this I like to pore over the financial news of a morning and see if I can find any new tips and increase my savviness of anything money related. I feel like my father all of a sudden, perhaps it is an age thing. However, it is great to learn of new products to be able to tell others about it as you never know how it may help. 

Recently I have been reading about peer to peer lending which is an alternative to lending and borrowing through a bank and Lending Works are a provider of this service. 

Here's how it all works:

Lenders receive a great return on their money which is matched to borrowers through the peer to peer platform. 

Borrowers are then able to take advantage of low cost loans, cutting out the banks and building societies lowers the rate.

Lenders choose from two different terms, 5.1% over 3 years or 6.4% over 5 years. A better return than most savings accounts but with a degree of extra risk.

Lenders money is protected in several ways; borrowers go through a check, there is a reserve fund to cover missed payments and Lending Works are the first peer to peer to have insurance against default risks such as loss of employment, fraud and sickness.

 Growing numbers of retired people are using this type of lending as part of retirement finance plans, so Lending Works have launched services for this market from a dedicated customer advisor to bonuses and online help for calculating return on money put in. Money can be withdrawn monthly using the monthly fixed income tool. 

**Feature post. Words are my own. Please do seek independent financial advice. **