Metro Bank has completed its acquisition of peer-to-peer lender RateSetter.
The deal was confirmed yesterday evening (14 September) and will see the bank solely fund RateSetter’s unsecured personal loans.
The move effectively closes RateSetter, once part of the ‘big three’ platforms, to new P2P lending.
It said in a blog post that there are no changes for existing investors yet.
“RateSetter continues to manage the loan portfolio and the provision fund as before, and the provision fund continues to apply to your investment with no liability for Metro Bank,” a blog post from the lender said.
“Access to your online RateSetter account and monthly statements continues in the normal way and our investor services team remains available to help with any questions you may have.
“RateSetter investors will continue to fund the ongoing essential secured residential property development, dealer finance, family finance and giffgaff lending.
“Apart from the remaining essential lending, the investor portfolio will go into run-off.
“This means the investor loan portfolio will decrease in size over time but our focus on investment performance will remain throughout.”
Read more: Why is Metro Bank eyeing RateSetter?
The platform revealed that it will close its five-year market from 14 October and will provide an update on how users can continue to invest in other markets.
The announcement also hinted that withdrawals may take longer due to the changing nature of the investment portfolio.
“Please note that with all new unsecured personal lending being funded by Metro Bank, the weighting of the investor loan portfolio towards secured lending will increase,” RateSetter said.
“Investment releases are expected to remain constrained for a period and we ask anyone choosing to continue to invest or reinvest to only do so if they do not need early access to their funds for the time being.”
The deal was first announced in August and revealed that Rhydian Lewis (pictured), co-founder and chief executive of RateSetter, would join Metro Bank’s executive committee.
Read more: What’s happening at RateSetter?