ASSETZ Capital is extending the deadline on its promotional interest rate hike due to “incredible” investor demand.
Last month, the peer-to-peer lender bucked the sector-wide trend of falling interest rates and increased returns on its 30-day current account, due to an influx of borrowers.
It gave investors from 13 April until 11 May to take advantage of 4.75 per cent returns for up to 90 days after they put money into the account. After this deadline, the account was set to return to its original rate of 4.25 per cent.
However, after receiving more than £15m of new money into the account since the offer went live, Assetz is now extending the promotion until 6 June, when it expects over £30m of new investment to have flowed into the account.
“Since launching our temporary rate increase on the 30-day access account we’ve seen an incredible influx of new capital into the account – it’s clear that this has gone down particularly well with investors,” said chief executive Stuart Law on Thursday.
“We’ve had entirely positive feedback and have decided to listen to the many who have asked us to extend the promotion to give them more time to invest in P2P loans via the account.”
The 30-day access account enables lenders to invest automatically in both short and long-term loans and interest is earned and paid monthly.
It gives investors more liquidity, although Assetz said that access times cannot be guaranteed.
Other P2P platforms such as Landbay, RateSetter and Zopa have recently cut interest rates due to an influx of investor money. Growing awareness of the sector and historically low interest rates have driven investors to the platforms, many of which are now focusing on growing their borrower base.