Lendwise

Lendwise Ltd is a UK peer-to-peer (marketplace) lending platform founded in 2018 that specialises in finance for postgraduate study, professional qualifications and related educational costs. The firm is directly authorised by the FCA under Firm Reference Number 782496 and is registered in England (company number 10466048) with a registered office at 3 More London Riverside, London SE1 2AQ.

As a directly authorised firm, Lendwise holds its own permissions and is responsible for meeting FCA requirements; it may hold and control client money for permitted activities. Total lending through the platform has been reported at approximately £85m (May 2026).

So what? The FCA considers P2P platform investments high-risk and warns investors they may lose capital and may not be protected if the firm fails. Direct authorisation is a regulatory signal — not a guarantee of returns or capital preservation.

Borrowers — typically postgraduate students, professionals seeking qualification funding, or those refinancing student debt — apply online and undergo credit checks and an assessment that considers future earning potential. Approved loans are listed on Lendwise's primary marketplace; investors can buy loan parts manually or use the platform's AutoLend feature to diversify automatically by risk appetite, target rates and maturity bands.

Lendwise may disburse tuition fees directly to institutions and living expenses to borrowers; monthly repayments flow back to lenders and are reported using XIRR to show annualised historical returns. There are typically no early repayment penalties for borrowers. A secondary market exists, but sales depend on buyer demand and loans in arrears or default are ineligible for sale.

So what? Repayment depends on borrowers' future earnings, not on physical collateral. Liquidity is conditional — exit is not guaranteed if loans fall into arrears or buyer demand softens.

Products: postgraduate student loans, international MBA loans, professional qualification loans (e.g. SQE fees), bootcamp and training loans, student loan refinancing, and school-fee and parent loans for university. Loan sizes typically range from £5,000 to £100,000 with terms of 1–10 years.

Investor returns: Lendwise's website publishes "estimated average returns of up to 9.0% per year" for a diversified portfolio, stated as net of expected defaults and loan servicing fees. This is a historical/estimated figure and should not be read as guaranteed future performance.

Fees: the platform earns a spread between borrower and lender interest rates (historically ~2.5% but reported to have widened to c.6.3 percentage points over the six months to May 2026) and charges a 1% administration fee to sellers on the secondary market (buyers pay no fee). Borrower-facing fees include an initial commitment/administration fee (e.g. 3%, minimum £300, on some school-fee loans).

Minimums and tax wrappers: account opening minimum is £1,000 (Classic or IFISA), with £10 minimum per loan part on the primary market. Recoveries were reported at £324,348 in 2024 (17.5% of defaulted amounts); Outcomes Statements remain the authoritative source for default and recovery data.

So what? The widening spread directly reduces lender net returns relative to borrower APRs — recent vintages should be examined before committing fresh capital.

Lendwise is aimed at investors prepared to accept high risk in exchange for potential returns from unsecured education loans. Typical users are experienced retail investors seeking peer-to-peer exposure, including within an Innovative Finance ISA, who understand capital is at risk and that past performance does not indicate future returns.

Account minimums and product complexity (AutoLend settings, secondary-market liquidity, loan terms) make the platform more suitable for investors who can diversify across many loan parts and who have read the Outcomes Statements carefully.

So what? Investments via Lendwise are not covered by the FSCS. Disclosures and the Financial Ombudsman Service are the relevant safeguards for retail investors.

Strengths. Direct FCA authorisation (FRN 782496) means the firm holds its own permissions and is individually accountable to the FCA. Published Outcomes Statements disclose default and recovery numbers, helping investors model net returns. AutoLend supports diversification across many loan parts.

Risks. Loans are unsecured; capital can be lost and FSCS protection does not apply. The platform spread has reportedly widened to c.6.3pp in the six months to May 2026, materially reducing lender net returns. Liquidity is limited — the secondary market depends on buyer demand and arrears loans cannot be sold. Investor reports have flagged operational issues around AutoLend caps that could cause unintended concentration. The Financial Ombudsman Service has, per public reporting, found against Lendwise in at least one unaffordable-lending case — investors should verify the latest position via FOS records.

1) AutoLend execution. Investor forums report that AutoLend may not always respect user-defined caps (maximum per loan, remaining payments), risking concentration or duration mismatches — verify settings and monitor allocations.

2) Spread widening. The platform differential between borrower APR and lender rates has grown materially in recent months; examine recent loan vintages and offered rates before committing fresh capital.

3) FOS complaints. Public reporting indicates the FOS has at least once found against Lendwise for unaffordable lending and inadequate forbearance — verify with FOS records for current status.

4) Scale. Cumulative lending of c.£85m is meaningful but small relative to major lenders; single-borrower exposures and recoveries have a proportionally larger effect on portfolio outcomes.