Peer to Peer Lending

Welcome to RateSetter, one of the biggest and most popular peer to peer lenders in the UK.

What is peer to peer lending?

Peer to peer lending is quite simply one individual lending money to another (usually) through an online platform that moderates the process. Instead of putting money in a bank you are lending money directly to borrowers. Often this means a higher rate of return than offered by traditional savings accounts.

Better rates backed by award winning customer service

Lending money through RateSetter allows you to earn a higher rate of return on your savings. Unlike banks RateSetter operate online and have one office in London, there are no branches which means our costs are low. We pass these cost savings on to you in the form of higher interest rates. You get a better rate on your savings, borrowers get a lower rate loan - everyone wins.

It's not just better rates you'll get from RateSetter though, you'll also get award winning customer service.

What is the difference to putting money in a bank?

Traditionally, most of us have kept our money with our bank, who lend our savings to other people, making and keeping for themselves a sizeable profit at our expense, but there is another way. Peer to peer lending grants you more control over your money, allowing you to lend to prospective borrowers direct, at a rate set by you.

How difficult is peer to peer lending?

It's remarkably easy to start lending money online with RateSetter. The whole platform has been designed with you in mind; there are helpful instructions throughout the site and an in-depth FAQ section at your fingertips. Once you've registered as a Lender (this typically takes about 5 minutes) you'll need to deposit funds. Transferring money can be done either by debit card, bank transfer or standing order.

When the funds hit your account (usually within 1-2 working days) you'll be able to start lending money. The first step is choosing a product - you need to decide how long you want to lend your money out for. If you're looking for a short term product choose the monthly access market, or if you're after our highest returns lend in the 5 year income market. Our rates vary between 2.0% - 5.0%, you can see our latest peer to peer lending rates here.

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5.5% *5 Year Income annualised


RateSetter's Peer to Peer Lending Guide

Quickly get to grips with lending money online at RateSetter.

Watch a video on peer to peer lending

Video script:

"RateSetter is a peer-to-peer lending company, we offer better more flexible rates by allowing members to lend and borrow directly from each other.

RateSetter is here to make lending money simple. We match you with an approved credit-worthy borrower so that you can get a better return than with a traditional savings account.

RateSetter is unique in how it shelters you from risk, Borrowers contribute to a protected pool of money that belongs to our lenders. We call this the Provision Fund. Every time a borrower has missed a payment or defaulted on their loan, the lender has been compensated by the fund. This unique approach has ensured that every lender has received every penny they have expected.

Our Borrowers are carefully and cautiously selected from applicants. We run checks to ensure they have proven credit histories and are reliable individuals who can afford their loan repayments. To start lending simply visit and register for an account. You can deposit by card or bank transfer and be lending in just a few minutes."

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How risky is peer to peer lending?

Just as any high street bank would, we rigorously check the credentials of our borrowers and lenders, ensuring that they are both who they say they are, and have the required creditworthiness for you to lend to. All of this is done by us behind the scenes, with our team completing all the necessary checks and paperwork so that you don’t have to, for a small administration fee that we charge to both our lenders and borrowers.

We have very low levels of default, and if someone does make a late payment on their Loan, we have the added protection of our unique Provision Fund, which shields the Saver from the risk of bad debt.

What rates can I get with peer to peer lending?

All rates on RateSetter are agreed between the borrowers and lenders in a transparent exchange market. You can see the rates available and accept the best one or ask for a better rate. On average our 36 month loans have returned 7.9% to Savers, whilst our Rolling Monthly Loan has returned an inflation-beating 4.0%.

Peer to peer lending is by no means new, but how we work is. Our matching process, variable rate loan and provision fund have all been designed to make it faster and easier to match our lenders with appropriate borrowers, making it easier than ever before to get started.

To find out how we can help get your money working harder for you with peer to peer lending please get in touch, either by phone, e-mail or using the contact form found on our site, where one of our team will be on hand to give you everything you need to start out in the world of lending money online.

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