RateSetter is a P2P (peer to peer) lender. It is debt funding for individual borrowers and some businesses. As an investor you are the lender giving money to the borrower.
Key facts and figures
Minimum investment: £10
Minimum term: One month
Requirements to invest: Must be over 18 and have a UK bank account. Must also pay tax on earnings.
Cumulative volume lent: £604 643 264
Type of borrowers: Predominantly individuals, some businesses
Money lent in last 12 months: £400 564 563
Market share % over last 3 months according to Liberum AltFi Volume Index UK: 19.55%
Current rates of return (according to RateSetter 29 April 2015)
1 Month Term
1 Year Term
3 Year Term
5 Year Term
Repaid at term
Repaid at term
Registration takes less than 5 minutes.
Choose amount to invest, deposit funds, and choose how long you want to invest for and at what rate.
Can pay in more money at any time without restriction.
At the end of the term, you can reinvest or withdraw as much money as you’d like.
Can manage account online all the time.
Getting money on the platform
Use your debit card to quickly move money into your RateSetter account. The first 3 debit card transfers are free, whatever their value, as are any subsequent transfers of over £1,000. Anything less and there's a £1.50 bank charge to pay.
It's free to transfer in any amount of money via a standard bank transfer.
When withdrawing, once bank transfer details are set up, moving money from RateSetter Holding Account into your bank account is quick and easy.
Do investors get a choice in who or what they invest in?
RateSetter is an anonymous service. All credit, affordability and suitability checking is done by RateSetter, and is not displayed on the website.
Investing your money
When you invest, you choose the best interest rate available based on supply and demand at the time. Most lenders choose the market rate because it’s simple and quick, but you can request a higher rate.
If there’s demand from borrowers at the higher rate, your rate will be matched. If not, your money will sit on the market earning no interest, until there is demand. It could be there for a week or more, there’s no set time. So it’s worth thinking carefully about the rate you set and how long you’re happy to not earn interest. The closer the rate you request is to the current market rate, the quicker you’ll start earning interest.
Monitoring your account
RateSetter’s “Your Account” page allows you to monitor progress of your investments, add or withdraw funds and make new investments online.
Understanding the risks
With any lending there’s a chance that a borrower won’t repay. RateSetter undertake sophisticated credit checks and their team only approve the most sensible and credit worthy borrowers.
Additionally, RateSetter has a “Provision Fund”. The objective of this is to protect investors against borrowers who miss payments or cannot pay.
Investors should understand that the Provision Fund does not provide a guarantee and your money is not covered by the Financial Services Compensation Scheme.
Can withdraw available funds at any time to a bank account, which should be available by 11am the next working day. Interest payments can also be withdrawn as they are repaid.
Can withdraw invested money early using their “sell out” option” as long as there is someone else to take your place as a lender (usually is), and you pay an early exit fee comprising an interest rate adjustment, RateSetter administration fee (0.25% of the outstanding loan contract) and an assignment fee.
Other interesting facts and figures
Outstanding loans: £357 434 856
Most common reason for loan: Car loan
Number of active investors 21 891
Interest returned to lenders £16 499 329
AltFi Amsterdam Summit 2018
AltFi is returning to Amsterdam for its second annual Summit in the city. The inaugural event last year was a roaring success, with key figures from across Continental Europe's alternative finance and digital banking sectors highlighted. These included Jeroen Broekema, managing director of Funding Circle Netherlands, and Mieke van Engelen, head of innovative partnerships at ABN AMRO's standalone lending platform, New10.