Basically there is a site for people in the UK that allows you to loan money out to other people. Ok it may sound risky, but actually its exactly what banks do everyday and is their main source of revenue. Plus the site I am joining does full credit checks and grades borrowers on catagory ratings based on their credit score.
I would recommend lending to the A* and A rated borrowers, even though you will get less interest back on your money, it is much safer. Since defaults on this range are only around 0.5%
This means you can expect a return of around 6-7% APR! Also I would suggest to loan out for the maximum period since actually these are less likely to default, and is what most normal people would shy away from. We want to be doing what most people do not do simply because of the supply and demand relationship. i.e. there is a reason why only 5% of people are rich! Because they do things most people do not do.
Heres the website:
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