RateSetter reaches £100m interest milestone
RATESETTER has helped investors pocket £100m of interest.
The peer-to-peer platform – launched in October 2010 – said it had paid £100m interest to investors without any lenders losing a penny.
Rhydian Lewis (pictured), chief executive of RateSetter, said the platform now has 500,000 customers, 60,000 registered investors and a loanbook of close to £2.5bn. The average annual return received by investors stands at 4.4 per cent.
“We launched RateSetter to give people the opportunity to get their money working harder, and we are very proud that we’ve generated £100m of interest for our investors without dropping a penny,” Lewis said.
“This is just the start. We are opening lending as an asset class that everyone can access – filling the gap between the low returns of cash deposits and the volatility of shares.”
It comes after RateSetter introduced its Innovative Finance ISA in February and saw more than £80m of subscriptions from 10,000 investors in just three months.
The platform unveiled a series of changes to its Rolling Market product to go live next month, removing the ability for investors to set their own rate on reinvested funds and altering how returns are paid.
Its Rolling Market product – that has a rate set by supply and demand and lets investors access their funds free at any point – is its most popular product but RateSetter said customers can find it complicated when rates fluctuate.
Read more: RateSetter investors facing wait to file tax returns early
