RateSetter confirms reintroduction of rate setting in Rolling Market

RATESETTER has confirmed that investors will once again be able to set their own rates on capital reinvestments in its Rolling Market from next month.

The peer-to-peer lender implemented an overhaul of the popular Rolling Market product on 6 June, no longer allowing investors to set their own rate on reinvested money.

Under the changes, investors had to use a market rate which was based on supply and demand on the platform.

However, following a backlash from some investors, RateSetter announced plans to reverse the move.

In a blog post the firm said it will reactivate the function on 5 September, which will require an update to investor terms.

“As part of the upgrade, we chose, with simplicity in mind, to set capital repayments to reinvest at Market Rate,” said the RateSetter blog.

“This reflected the preference of the majority of investors.

Read more: RateSetter backtracks on Rolling Market rate changes

“However, since we made the upgrade, we have heard from some of you saying how much you valued the option to set your own rate for capital reinvesting in the Rolling Market, just as you can in our other markets.

“We agree that the choice of whether to invest at the Market Rate or to set your rate is one of the empowering features that makes RateSetter stand out as a market-leading investment product because it gives you control over the rate at which you are lending.

“So, taking on board your feedback, we are reintroducing the ability to set your rate on reinvestments. This will harmonise the Rolling Market with the other RateSetter markets and give you the control you have told us you want.”

Read more: RateSetter in talks for £30m fundraising round