Investors flock to RateSetter’s ISA

By Ryan Weeks on 15th June 2018

P2P/Marketplace Lending

The platform has hit the £100m mark in IFISA investments in what it calls ‘record time’.

Investors flock to RateSetter’s ISA

Leading peer-to-peer lender RateSetter has today passed the £100m mark in subscriptions to its Innovative Finance ISA.

The tax wrapper went live four months ago. For those keeping track, rival P2P firm Zopa hit £100m in IFISA investments in April. RateSetter claims that it has reached the milestone in ‘record time’.

The P2P lender – renowned for its provision fund mechanism – has notched a number of milestones lately. It reached £100m in cumulative interest repayments to investors in May, and later that month passed £2.5bn in cumulative lending to consumers and businesses in the UK.

Since launching the tax-wrapper in February, more than 10,000 RateSetter ISAs have been opened.

“The popularity of the RateSetter ISA has exceeded our expectations. With the Cash ISA in the doldrums, the RateSetter ISA has quickly become a real option for people who are seeking better returns and are prepared to accept some risk,” said RateSetter’s CEO and co-founder Rhydian Lewis OBE (pictured).

“We look forward to building on this and welcoming many thousands more investors who want to put their money to work.”

The much-vaunted IFISA – which has often been spoken of as key to pushing P2P into the mainstream – has had something of a slow start. Initially, delays to the FCA’s authorisation process held up platforms in launching their ISAs. When they finally did, many firms struggled to find a home for the influx of new money, and had to launch their ISAs in a staggered fashion.

But 2018 has been tipped as the year that the wrapper might finally ‘take off’. RateSetter has built a good launchpad.

 

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