Flexible peer to peer lending & borrowing
Your money, your way

The fees we charge to borrowers and lenders

General Principles

FEES - GENERAL PRINCIPLES

  • To charge appropriately in relation to the cost of the service or people time costs involved
  • To keep fees as low as possible consistent with making a reasonable profit
  • Automate as much as possible to reduce the people costs consistent with providing a good personal service
  • To apportion charges fairly between borrowers and lenders
  • To present charges as clearly as possible and explain how they work
  • Offer a range of services from basic, through advanced to optional, users only pay for what they want
  • To adjust the prices as we go, in line with these policies

Borrowers' Fees

BORROWERS' FEES

Borrower Membership Fees

For a Borrower Membership, the fee is £3.45 FREE FOR NOW!
This covers the cost of account creation, ID verification, credit reference checking and risk determination

Loan Success Fees

The Once-off Loan Success Flat Fee is £70.00
This once-off flat rate fee covers the site's cost of setting up the loan transaction account.
This cost does not vary with the duration or amount of the Loan.

The once-off refundable Compensation Scheme Fund (CSF) contribution is based on the borrower's credit rating, and is as follows:-

Borrowers' Credit Stars Percentage  of Loan Amount
13 to 15 0.4%
10 to 12 0.7%
7 to 9 1.0%
4 to 6 1.6%
1 to 3 2.0%

The CSF contribution is refundable to the borrower when the loan is fully repaid, subject to the loan not having had any late or missed repayments.

For more information on the working of the Compensation Scheme please refer to this explanation. The Loan Success Percentage Fee is a once-off fee of 1% of the Loan amount.
This fee covers the costs of administering the loan and its transactions, which increase with the size of the Loan.
Thie three above fees/contributions are deducted from the Loan when disbursed to the Borrower

Premium Services Fees

Advanced Borrower membership, giving access to the anonymous automated Matching market £3.95
For more information on the working of the Matching market please refer to this explanation.

Optional Services Fees


Change in Instalment Plan
If the Borrower wishes to Change the Instalment Plan (CIP), or indeed fully repay the loan early, then there is the optional CIP membership
CIP membership £1.95, Flat Fee £0.10, Percent Fee 0.02%, and compensation to Lenders: Flat Fee £2.95, Percent fee 0.08%
Here are some examples of CIP fees:-

Outstanding
Loan Amount
Fees to Site
inc. Membership

Compensation
to Lenders

Borrower
Total Cost

£1,000 £2.25 £3.75 £6.00
£1,500 £2.35 £4.15 £6.50
£2,500 £2.55 £4.95 £7.50
£5,000 £3.05 £6.95 £10.00
£7,500 £3.55 £8.95 £12.50
£10,000 £4.05 £10.95 £15.00
£15,000 £5.05 £14.95 £20.00
£20,000 £6.05 £18.95 £25.00
£25,000 £7.05 £22.95 £30.00

For more information on the working of CIP please refer to this explanation.

Arrears & Default Fees

Fee for a Late (more than 5 days) scheduled Instalment Repayment is £10.00.
If the loan is in arrears or default we pass the debt on to a reputable professional debt collection agency for collection.
The debt collection agency will charge the borrower fees (over which we have no control) for the work they do in attempting to collect the repayments. We believe these fees are £60 administration fee plus !8% commission on any recovery.
For more information on Arrears and Default on a Loan please refer to this explanation.

SOME BORROWING FEES EXAMPLES
Borrower Membership: £3.45 FREE FOR NOW!

Loan Amount Flat Rate Fee Percentage  Fee Refundable** CSF Contribution* Temporary Total Fee Total Fee after CSF Contribution* Refund**
£1000 £70 £10 £10 £90 £80
£3000 £70 £30 £30 £130 £100
£5000 £70 £50 £50 £170 £120
£7000 £70 £70 £70 £210 £140
£10,000 £70 £100 £100 £270 £170
£15,000 £70 £150 £150 £370 £220
£25,000 £70 £250 £250 £570 £320

* Assuming Credit Stars (7 to 9) ** Refundable on loan being fully repaid with no late or missed repayments


Lenders' Fees

LENDERS' FEES

Lender Membership Fees

For a Lender Membership, the fee is £2.65  FREE FOR NOW!
This fee covers the cost of account creation, ID verification and anti money laundering checks.

Lending Success Fees

SEE GET PAID! OFFER
When a Lender wins a Loan, Bid or has a Match made, a once-off flat fee of £0.10 is deducted from the Lender's account - yes that's only 10p!

This covers the site's costs of setting up the successful lending transaction account on the loan. The Lending Success Percentage Fee is 0.6% of the amount being lent out per annum.
It is calculated on a daily basis but paid monthly by deduction from the lender's account.
Percentage fees cover the site's costs of administering the loan & all its transactions, which increase with the amount of the loan.

Premium Service Fees

Advanced Lender, £2.95, provides up to five portfolios for automated lending via AutoLend, and ARBU, our unique "Automated Response to Bumped-off Underbid".
For more information on the working of the AutoLend and ARBU systems please refer to the Matching Market explanation.

Optional Service Fees

For the Lender, the Compensation Scheme is optional, with the membership subscription £4.95
The Compensation Scheme is designed to reimburse lenders who might suffer loss through borrower late or missed repayments, arrears or default. For more information on the working of the Compensation Scheme please refer to this explanation.
The monthly fee to lenders for the Compensation Scheme is based on the credit ratings of the borrowers to whom the lender lends money, and is as follows:-

Credit Stars of Borrower % of Loan Amount per Annum paid Monthly 
13 to 15 0.2%
10 to 12 0.3%
7 to 9 0.4%
4 to 6 0.8%
1 to 3 1.0%

Arrears & Default Fees

If the loan is in arrears or default we will pass the debt to a reputable debt collection agency for collection on behalf of the lenders.
Relevant fees are paid by the borrower & any money recovered will be passed to the lenders pro-rata. However the lender should understand that the full amount owed on the loan may not be recovered.
For more information on Arrears and Default on a Loan please refer to this explanation.
The optional lenders' Compensation Scheme is designed to protect lenders from the effects of borrowers' late and missed payments, arrears and default.
For more information on the Compensation Scheme refer to this explanation.

SOME LENDING FEES EXAMPLES
Lender Membership: £2.65 FREE FOR NOW!
Flat Rate Once-Off Fee per Successful Lending Bid or Match Transaction: £0.1 - yes, only 10p!

Amount Lent Percentage  Fee Per Month
£10 1p
£20 1p
£30 2p
£50 3p
£100 5p
£500 25p
£1,000 50p
£5,000 £2.50

Get PAID! Lenders' Launch Offer

PAID! is our "Participation Awards & Incentive Drive!"

SPECIAL LAUNCH OFFER FOR OUR LENDERS TO GET PAID!

No Lending Fees - they will be paid for by PAID! until 31st March 2015 for the first 100 lenders who lend £500 or more.
This is equivalent to boosting your interest received by about 1.5%!
Includes lender flat fees and monthly fees on all lending once £500 has been lent. Does not include memberships or optional fees (e.g. Compensation Scheme)
Click here for more information on PAID!

  THERE ARE NO OTHER FEES & NO HIDDEN CHARGES!

We reserve the right to change any of the above fees, in line with our stated general principles, on 7 days notice posted here