RateSetter is a simple concept. Creditworthy Borrowers want a low cost loan. Smart Savers want a better return. We match them up and ensure everyone gets what they've been promised.
Savers lend money to a bank. The bank then lends it to other people. The bank gets a great return from the Borrower, and gives a small interest rate to you. RateSetter was launched in October 2010 to offer an alternative to those Savers who are looking for a fair return on their money, and to those Borrowers who want a simple, low cost loan, delivered with an old-fashioned idea of customer service.
RateSetter is not a bank. RateSetter does not lend money itself. We help ordinary people lend and borrow money. Borrowers say how much money they need, then they set the interest rate they’re happy to pay. Savers say how much money they want to invest, then they set the interest they’re happy to receive. We simply match them up.
You decide the rates. We do the rest.
The rest is just like what a high street bank would do. We check our borrowers and lenders are who they say they are. We check a borrower’s creditworthiness. We match a lender’s savings to a borrower’s loan. We deal with all the paperwork and payments. All this happens behind the scenes – and we charge our borrowers and savers a small fee for it.
We can't say what our rates are because we let you – our borrowers and lenders – decide. You choose when rates go up. You choose when they go down. And by bringing you together directly, everyone gets a better deal. Rates that are lower than the norm if you’re a borrower, and higher than the norm if you’re a saver.
We’re not the first company to offer person to person finance. But our way of doing things is different - our matching process, our variable rate loan, our Provision Fund. It's all designed to match what you want quicker and give you greater flexibility. It's allowed us to ensure that everyone has received everything they have expected.
Of course, we’ll always need banks. But there will always be other ways, too. Better ways for people to save and borrow. Ways that question how things have always been done and shake them up.
RateSetter is the other way.