Welcome to the RateSetter review page on OFF3R. This page provides key information about theRateSetter investment process. The RateSetter review page has been developed as part of the Investment Platform review series on OFF3R.
|Regulatory Status||Fully FCA Authorised|
RateSetter allows investors to lend to a diverse range of credit-worthy borrowers including: individuals, small and medium-sized enterprises and property developers via peer-to-peer loan opportunities.
RateSetter is aimed at every-day investors provided they are at least 18 years of age and have a UK bank account. Lenders can earn up to 4.3% on their investment over a period of 6 months to 5 years, with a minimum investment of £10.
OFF3R’s Comment on Platform
Inherent to RateSetter is the size of their provision fund, with the platform having not lost any investors’ money due to the fund covering all defaults to date. Whilst past performance is no guarantee for the future this is certainly a key factor for investors looking for a stable P2P lending platform to use.
Investors choose from either a Rolling, 1 Year or 5 Year Market Market account and RateSetter take care of the process, costs and risk management.
Invest as part of your pension portfolio with RateSetter and enjoy the tax benefits through a Self-Invested Personal Pension (SIPP).
|Who do you Lend to?||Individuals|
|What is the minimum investment?||£10|
|How are the loans secured?||Business Assets|
|What is the typical investment term?||6 to 60 months|
|What type of investment is it?||Account based – investors select an investment product and the platform lends money across a diversified portfolio of loans|
|Is an Innovative Finance ISA available?||No.|
|Are there specific investor fees?||No fees for lending money|
|Is early exit possible?||Yes. However, there is a 1.73% ’Sell Out’ fee.|
|What investor protection is available?||There is no access to FSCS. However, investments with RateSetter are protected by the Provision Fund which is intended to provide a buffer against poor performance. The RateSetter Provision Fund has a 100% track record: to date, every investor received the returns they expected.|
Platform Registration and Investment Process
Please open the image gallery for a walkthrough of the RateSetter investment process. Each stage of the investment process has also been detailed below.
Stage 1 – Registration Process
In order to register with RateSetter you simple need to have a UK bank account and be at least 18 years of age. They will then confirm your identity, which is usually done automatically, and verify that you understand the risks involved.
Stage 2 – Making an Investment
You can transfer funds to your RateSetter account via Bank Transfer, Debit Card, Regular Lender Instruction or Standing Order by logging into the ‘Lending’ section of your account and following the instructions under the ‘Deposit’ tab. You are then able to choose between investing in the Everyday account or an ISA, or both should you prefer.
Stage 3 – Managing your Investment
You can manage your investment through your online account. You simply need to login and click on ‘Your Lending’. This allows you to view ’Your Portfolio’ where you can alter the rates of any offers already on the market, and decided whether to ’unmatch’ or ‘change’ dependent upon your preferences.
Stage 4 – Exiting your Investment
If you have money on loan, you can view this on ‘Your Account’ under the ‘Drawdown’ feature within in the ‘Withdrawal’ page. Here you can view any upcoming payments, and override any reinvestments and return them to your ‘Holding Account’ as the funds are repaid by your borrows. Once the money is in your ‘Holding Account’, you can withdraw it to your bank.
RateSetter lent a total of £664.7million in 2016 with an Actual annual investor return of 4.26% after fees and bad debt.
*Date based on internal records.
Please visit RateSetter for more information on their investment opportunities. Your Capital is At Risk.
Lending to individuals and early stage businesses involves a high level of risk and it should be done only as part of a diversified portfolio. Tax treatment depends on the individual circumstances of each investor and may be subject to change in the future. Your capital is at risk.