P2P lending

Recently had my first introduction to peer-to-peer lending, which seems to be growing in popularity. We're trying to order a new kitchen and all the loans are fucking ridiculous interest rates. P2P seems to be at better rates and has a much more co-operative feel about it. Seems to be a pretty simple model. Loads of people put money in, which is lent out to borrowers. The investor gets a return, the borrower gets a better rate loan, and the P2P firms gets 1% fee for being the middle man. None of the usual banking bollocks of early repayment fees and the like. As the saying goes, they only have themselves to blame...