RateSetter ISA passes £200m

With the tax year drawing to a close, the firm has seen a strong 12 months of inflows into its tax wrapper.

P2P lending platform RateSetter ISA has passed £200m of subscriptions to its Innovative Finance ISA in its first 12 months since launching an Innovative Finance ISA.

The firm says that one in three of its investors have now opened an ISA, so far seeing an average annualised return of 4.5 per cent with the average RateSetter ISA balance at £11k, or £9k short of the full allowance.

Mario Lupori, Chief Investments Officer at RateSetter, said: “Passing £200 million in subscriptions to our ISA, in just over one year, is a good milestone and a sign of things to come. It takes time for financial innovations to build profile and trust, and the IF ISA is no different. We’re making strong progress and it’s clearer than ever that investors find our products attractive. 

“IF ISAs and P2P investing do not have to be high-risk. We are showing this on a daily basis by delivering healthy returns based on investment against a diverse and stable portfolio of high-quality loans.”

The P2P lender now has £860m in funds under management and says that emore than 600,000 customers have used RateSetter to invest or borrow, making it the UK’s most popular peer-to-peer lender. RateSetter has originated more than £3bn of loans in total, generating £125m in returns for investors to date.