RateSetter’s investors earn £50m in interest

RateSetter's investors earn £50m in interest




Investors in peer-to-peer lending platform RateSetter have now earned more than £50m in interest.

RateSetter investors have had an average return of 4.7% on their money since it launched in October 2010.

Despite RateSetter posting a £4.9m loss for the year, the lender clams that no individual investor has lost a penny on their capital or interest thanks to its provision fund, which steps in to reimburse investors if a borrower misses a payment.

"RateSetter is all about giving individual investors direct access to the risk and return from loans ¬ ending the exclusivity that banks and funds have tightly held on to for centuries,” said Peter Behrens, co-founder and chief commercial officer at RateSetter.

"Returning £50m without dropping a penny is a great achievement – and this number is growing by around £2.5m every month."

RateSetter has reported an increase in investor numbers since the decision to cut interest rates in August, with over 65% more active investors registering compared to the same period last year.

"The RateSetter market is unique, with interest rates set by thousands of investors and borrowers – not by the Bank of England or a faceless committee,” Peter added.

“As a result, there was never any question of us passing on a rate cut to our investors."

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