Peer to peer group Lending Works is launching two new higher interest rates in response to improving demand from high quality borrowers.

Lenders will earn 5% on money lent for up to 3 years and 6% for money lent for up to 5 years. Until 1 March 2015, customers who lend £10 or more will be locked in at these leading rates. On this basis, a Lending Works customer who lends £5,000 over 3 years can make returns of £250.03 in their first year and £788.24 over the whole term.

The 5% and 6% fixed rates offer is the first in a series of Rate Locks to be rolled out over the course of 2015. Rate Locks tie in higher rates.

Lending Works say these rates should appeal to people who may have already exhausted their ISA allowances for the 2014/15 year and are looking for alternatives, or people looking at ways to boost their pension income.

Nick Harding, founding CEO of Lending Works, commented: “We only lend money to the top 10% of creditworthy borrowers and it is from these people that we are seeing unprecedented demand for long-term loans.Lending Works lenders’ money is allocated across a portfolio of borrowers efficiently, meaning that the opportunity to benefit from these rates begins immediately.”