Peer-to-peer lending platforms are bracing for more transfers from RateSetter investors after they receive funds into their holding accounts by 6 April.
From tomorrow (2 April), RateSetter’s investing side will close as the loanbook purchase comes into effect. Lenders’ money will be processed into the system and go into the holding accounts over the coming days..
Peer2Peer Finance News understands that by the next banking day on 6 April all RateSetter investors should have all their money in full in their holding account, ready to withdraw or transfer wherever they want.
Stuart Law, chief executive of Assetz Capital, which last month reported it has seen a huge spike in Innovative Finance ISA transfers from RateSetter investors, said he is bracing for more transfers over the coming months.
“There’s been a lot returned to investors already but this will bring even more and our product is reasonably similar to RateSetter so we expect to receive a reasonable amount over the year,” he said.
“We don’t expect everyone to jump in immediately, but I think people will transfer over the year and we will receive a healthy level of RateSetter transfers in April.
“People will take their time to assess where to put their money and not everyone will have alternatives come up to mind.
“I can’t see them returning en masse to bank accounts, now they have accessed proper returns I think they will want to stay in the sector.”
Mike Bristow, chief executive of CrowdProperty, said that a huge amount of the funds RateSetter investors receive will be transferred to his peer-to-peer property lending platform.
“A lot of that will come to us,” he said.
“We get loads of transfers all the time from everywhere, we’ve had loads from RateSetter, we are getting a lot of money from the platform and a lot more will come to us.”
David Turner, head of lender relationships at Invest & Fund, said that the P2P property lending platform has been very busy lately with many enquiries for transfers between £2,500 to tens of thousands and after receiving RateSetter transfers he expects more soon.
“We do expect RateSetter transfers, if it’s been anything like this, absolutely we do,” he said.
“I think it’ll be a bumper season for Invest & Fund and other platforms accepting ISA money. It’ll just be crazy and so positive, we’re very excited by that.”