RateSetter’s personal loan portfolio is performing on par with mainstream lenders, the platform has reported.
It comes as the peer-to-peer lender is believed to be edging closer to its acquisition by Metro Bank being completed after it filed new articles of association last week.
An update to investors show the platform benchmarked its unsecured personal loan portfolio against information from a range of major UK lenders including high street banks to compare the impact of Covid-related payment holidays.
Read more: Why is Metro Bank eyeing RateSetter?
“Based on this information the RateSetter portfolio is faring well in relative terms,” RateSetter said.
“The outlook for unemployment over the coming months will be the key determinant of future performance, although as communicated previously we have provided for an increase in unemployment.”
The update said RateSetter’s secured portfolios continue to perform in line with expectations with increased sales in its residential property development segment since the housing market reopened.
It also reported that asset finance facilities to car dealerships are performing well due to renewed underlying activity from consumers turning to the car over public transport.
The platform, which is closed to new investors and has reduced investor rates and its level of lending, said its interest coverage ratio has remained unchanged at 67 per cent and its capital coverage ratio reduced by one per cent to 153 per cent.
This means investors’ capital continues to be fully covered, the platform said.