RateSetter attracts £200m into its IFISA

RATESETTER’S Innovative Finance ISA (IFISA) has passed £200m of subscriptions since launch.

The peer-to-peer lender launched its tax wrapper in February 2018 and says investors have put away £11,000 on average and earned 4.5 per cent a year.

One in three RateSetter investors has now opened an ISA, the platform said.

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“Passing £200m in subscriptions to our ISA, in just over one year, is a good milestone and a sign of things to come,” Mario Lupori (pictured), chief investments officer at RateSetter, said.

“It takes time for financial innovations to build profile and trust, and the IFISA is no different. We’re making strong progress and it’s clearer than ever that investors find our products attractive.

“IFISAs 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 platform hit £3bn of total lending earlier this year.

Of the £3bn loanbook, £820m of the loans are still active and £2.2bn has been repaid by borrowers, generating returns of £120m for RateSetter investors, who have enjoyed an average annual interest rate of 4.4 per cent per year since the platform launched in 2010.

Read more: RateSetter IFISA attracts £175m in first year