Frequently Asked Questions

 

Most asked

If I apply for a loan, how long will it take before the money is in my account?

When you apply for a loan through RateSetter, we will give you a lending decision within 1 working day. Once you have accepted the loan, the funds will be transferred in to your account on the next working day. 

Get quote

Can I pay some or all of my loan off early?

Yes, you can pay off all or part of your loan early at any time and there are no early repayment fees. You can make additional payments, increase your monthly instalments or repay your loan off in full; all these functions can be managed online. 

Who can invest with RateSetter?

To invest with RateSetter you must:

    - have a UK bank account,  and 
    - be at least 18 years of age. 

We will also need to be able to confirm your identity. We can usually do this automatically, but occasionally we will have to confirm details with you directly. 

All Investors are responsible for paying UK income tax on their interest earned through RateSetter. The tax you have to pay is dependent on your individual circumstances and subject to change. It is your responsibility to pay the correct tax on your earnings through RateSetter. 

Register to Invest

What happens if a Borrower misses a payment?

All borrowers pay a risk-adjusted fee into the Provision Fund. If a borrower misses a payment, the Provision Fund reimburses investors; if the loan goes into default, the Provision Fund takes over the loan and repays outstanding capital to the investors. 

View Provision Fund

How does the Provision Fund work?

RateSetter pioneered the Provision Fund concept in peer-to-peer lending as a way to offer greater predictability for investors, allowing them to focus on setting the rate they require for their money. It has ensured that no individual investor has ever lost a penny, although past performance is no guarantee of future success. 

All borrowers pay a risk-adjusted fee into the Provision Fund. If a borrower misses a payment, the Provision Fund reimburses investors; if the loan goes into default, the Provision Fund takes over the loan and repays outstanding capital to the investors.

 

How do I apply for a loan?

All loan applications must be applied for online. Below is a short guide to applying for a loan with RateSetter.

Step 1: Get a quote (five to ten minutes)
If you ask for a quote, we’ll ask you a few questions so we can tell you how much you can borrow and your likely APR.

Step 2: We’ll confirm how much you can borrow (in one working day)
We'll check your credit history with our credit reference agency. This won't have any impact on your credit rating. We’ll email you in one working day to confirm whether you can get a loan with RateSetter and how much you can borrow.

Step 3: We’ll match you up with a Lender
You can then accept the best APR available, which will be matched immediately.

Step 4: We’ll send you the money (on the next working day)
We’ll send you the money the day after you’re matched (as long as it’s a working day).

Get a quote

 

Does RateSetter charge Borrowers a fee?

When you apply for a loan, we will tell you all the fees which apply. In addition to the loan and the interest, you will be charged the administration fee and the Credit Rate fee. The fees payable will be dependent on how much you would like to borrow, the repayment term and your personal credit profile. There is nothing to pay up front, all the fees are spread out over the monthly repayments and are included in the total amount repayable.

 

What is "Market Rate"?

Once a Loan is matched, a Lender is repaid over the term established in the contract. When a repayment is made, the Lender decides whether to reinvest or withdraw. The “Reinvestment” tab in “Your Lending” allows you to automate these decisions.

The “Market Rate” setting is one of these reinvestment options - it is set daily and is designed to ensure the Lender’s money is re-invested as quickly and efficiently as possible. 

How it works: 
The Market Rate is automatically calculated in each market every day. The rate is set by taking a weighted average of all the rates transacted during the previous day between 6am and 10pm. The Lender’s repayment is then submitted to the market as an order. If the order is not matched on that day, it will be updated to the next day’s Market Rate should it be lower. 

View Current Rates

Does RateSetter ever lend through its own Market?

Yes, from time to time RateSetter lends directly into its market in secondary loans to facilitate access to lenders. This is always limited and in no way means that access is any more guaranteed.

 

Why borrow through RateSetter?

Many Borrowers choose to borrow through RateSetter as our APR rates are often much cheaper, we have no early repayment fees and accounts are easy to manage online. Add that to the speed of our application process (instant quote available online, and 1 day to receive a credit decision), and it’s a winner. Not to mention our lovely customer service team, who are available at the end of the phone to help you with any questions you may have. 

Get a Smart Quote

Why do people borrow through RateSetter not a bank?

RateSetter only offers loans to Borrowers who have decided to search for an alternative to a bank. RateSetter loans are listed on most of the Price Comparison sites and we work closely with them to attract creditworthy Borrowers. Borrowers choose RateSetter because they can get a better rate than their bank will offer, with the promise of a quick application process, great customer service and no early repayment penalties. These features have seen RateSetter's loan products highly ranked by both Personal and Commercial Borrowers as well as consumer organisations. 

It's important to recognise that RateSetter is competing with mainstream banks and building societies for those Borrowers; that they are not people who cannot find finance elsewhere.

 

How do I change the rate of an offer already on the market?

Please login to your account and click on 'Your Lending'. On the left hand side of the page, there is a menu of options. Directly under the 'Your Portfolio' section, please click on the relevant market which contains the order you would like to change. When the main market page comes up, click on the plus sign next to 'Unmatched' to expand that section. You will then need to click on the 'change' link on the right-hand side of the order number.

General

If I apply for a loan, how long will it take before the money is in my account?

When you apply for a loan through RateSetter, we will give you a lending decision within 1 working day. Once you have accepted the loan, the funds will be transferred in to your account on the next working day. 

Get quote

How do I make a complaint?

At RateSetter we put our customers' best interest first. We recognise that award winning customer service is not just about the good times, it’s about how we help you when things don’t go as planned. That’s why if we make a mistake, we promise we'll go out of our way to make it right.

If you are unhappy with any aspect of our service and would like us to look into your concerns further, please do not hesitate to get in contact Click here to see how.

 

How is RateSetter funded?

Since launching in 2010 RateSetter has raised over £40m in equity from private investors and investment funds. 

Find out more

Can I see previous rates matched on RateSetter?

We display our historical rates and market information within our website. 

Historic Rates

What is RateSetter?

RateSetter is a Peer-to-Peer finance company, which essentially means that instead of borrowing from a bank, you can borrow from ordinary customers and investors for a lower APR. It’s a win-win situation; you get a lower APR and Lenders get a better return on their money.

 

Will my application be recorded on my credit file?

When you apply for a quote with us, we will make a ‘soft search’ on your credit file. This is marked as a quotation. It will be visible to you and other Lenders but will not affect your credit score. If you make a full application with us and your loan is approved, we will make a full credit search once you decide to take out the loan. This gets recorded on your credit file as a search. Please remember that multiple searches on your credit file over a short period of time is likely to affect your credit rating.

 

How much can I borrow?

RateSetter typically offers loans from £500 to £35,000. The amount will depend entirely on your individual circumstances and ability to afford the loan.

Why are your APRs cheaper than other lenders? What's the catch?

The main reason our rates are cheaper than the rates offered by the banks is that we are a Peer-to-Peer lending company. With a bank, they use deposits from savers to lend to Borrowers and charge high APRs, keeping the profits for themselves. With us, you get to cut out the banks and borrow direct from Lenders and investors. Most of them are ordinary people wanting to get better interest rates than if they were to put their money in a savings account and so they are happy to accept lower APRs than the banks would charge. As we are internet based, we also don’t have the same overheads as banks do with multiple branches, so this helps keep the costs down.

 

Does RateSetter charge Borrowers a fee?

When you apply for a loan, we will tell you all the fees which apply. In addition to the loan and the interest, you will be charged the administration fee and the Credit Rate fee. The fees payable will be dependent on how much you would like to borrow, the repayment term and your personal credit profile. There is nothing to pay up front, all the fees are spread out over the monthly repayments and are included in the total amount repayable.

What are the risks of borrowing from RateSetter?

The general risk of borrowing with us is the same as the risk of borrowing from any other provider. You will need to consider if the repayments are affordable for you on a monthly basis. You will also need to ensure you have a plan in place should your employment circumstances change.

 

I haven't heard back about my application. What should I do?

Once we have received your application, we aim to give you a lending decision within 1 working day. Please check your emails (especially your junk folder) and keep your phone handy to make sure we can contact you. If you still haven’t heard back from us, please contact us and we’ll be happy to check the progress of your application.

Call RateSetter on 0203 142 6226

 

How can I contact you?

Address: RateSetter, 6th Floor, 55 Bishopsgate, London, EC2N 3AS

Email address: [email protected]

Call RateSetter on 0203 142 6226

 

What's the maximum term I can have a loan over?

RateSetter loans can be from 1 year up to 5 years.

 

If I've already taken out a loan with you, can I apply for another one?

Yes, we are happy to take new applications from existing customers. We will ask that you have made at least 6 successful monthly repayments before applying for another loan.

 

Does RateSetter ever lend through its own Market?

Yes, from time to time RateSetter lends directly into its market in secondary loans to facilitate access to lenders. This is always limited and in no way means that access is any more guaranteed.

 

Why borrow through RateSetter?

Many Borrowers choose to borrow through RateSetter as our APR rates are often much cheaper, we have no early repayment fees and accounts are easy to manage online. Add that to the speed of our application process (instant quote available online, and 1 day to receive a credit decision), and it’s a winner. Not to mention our lovely customer service team, who are available at the end of the phone to help you with any questions you may have. 

Get a Smart Quote

Why do people borrow through RateSetter not a bank?

RateSetter only offers loans to Borrowers who have decided to search for an alternative to a bank. RateSetter loans are listed on most of the Price Comparison sites and we work closely with them to attract creditworthy Borrowers. Borrowers choose RateSetter because they can get a better rate than their bank will offer, with the promise of a quick application process, great customer service and no early repayment penalties. These features have seen RateSetter's loan products highly ranked by both Personal and Commercial Borrowers as well as consumer organisations. 

It's important to recognise that RateSetter is competing with mainstream banks and building societies for those Borrowers; that they are not people who cannot find finance elsewhere.

 

How do I change the rate of an offer already on the market?

Please login to your account and click on 'Your Lending'. On the left hand side of the page, there is a menu of options. Directly under the 'Your Portfolio' section, please click on the relevant market which contains the order you would like to change. When the main market page comes up, click on the plus sign next to 'Unmatched' to expand that section. You will then need to click on the 'change' link on the right-hand side of the order number.

 

Can I draw an income from the interest and reinvest the capital?

Yes, we have a new account feature where you can select to withdraw the interest from an investment, whilst re-investing the capital. This will allow you to draw an income, whilst leaving the capital untouched. 

Alternatively, you can still choose to reinvest all the funds (capital and interest) if you wish to. You can also control these settings on each individual market through your reinvestment page. 

We have a new Auto-Withdrawal feature, which enables you to choose the intervals at which the funds are sent and choose the specific day on which the funds are withdrawn. If you would like any help using this new feature, please contact our customer service team on 0203 142 6226 and they will be happy to advise you. 

Please note that you will need to have made a successful withdrawal before being able to use the auto-withdrawal feature.

 

Who can apply for a commercial loan?

Any established business that has been trading for at least 3 years and has at least 2-years either audited accounts or formally prepared management accounts. We lend to UK operating and owned sole traders, partnership, limited companies or limited liability partnerships.

 

What is a commercial loan?

Commercial loans are loans of more than £25k to sole traders, partnerships, limited companies and LLPs. RateSetter also offers loans below £25k but these can only be provided as personal loans to the business owners. You can find out more about these on our business loans page.

 

Do RateSetter require security for commercial loans?

Each request will be considered on its merits. Where we are lending to a limited company or limited liability partnership we will usually look to take a debenture over the company and possibly directors / partners personal guarantees.

 

Over what terms can I apply for a commercial loan?

We provide commercial loans of between 3-months and 5-years. These are term loans with capital repaid over the term.

 

What interest rate and fees will be charge for a commercial loan?

Our interest rate and fee structure are simple and straightforward. We have no hidden charges and there are no early repayment fees. 

We charge a set-up fee of between 0.5% and 1.0%, which is added to the loan. We charge a Provision Fund fee, known as either the Credit Factor Fee, which is taken up front, or Credit Rate Fee, which is taken over the term, of between 1.0% and 4.0%. We charge a margin of between 2.5% and 3.5% over the rate we pay to our lenders.

 

How do I apply for a commercial loan?

Please email to [email protected] or call us on 020 3142 6226, with details of your request including the name of your business, the details of the owners of the business, the amount you wish to borrow, the reason for the request and any other information that you feel is relevant.

 

How long will it take to agree a commercial loan and when will I receive the funds?

We will expect to contact you within 48 hours of your initial request either by email or telephone. Further information may be required to enable us to fully assess your request. Once we have all the information we have requested we will expect to provide you with an answer within 48 hours of receipt of this information. 

When we have approved your loan we may need to undertake a site visit to meet both you and to see your operation. We will then issue the facility agreement and any security documents which is the final stage of the process. Once all the documents have been executed we will drawdown your loan and the funds will be in your business account within 24 hours .

 

What is the British Business Bank and how does it invest money?

The British Business Bank programme originally evolved from the Department for Business, Innovation and Skills. It remains a Government owned financial institution but is run separately from BIS. It is not authorised or regulated by the Financial Conduct Authority or the Prudential Regulation Authority. The British Business Bank through the British Business Bank Investment Programme aims to increase the amount and types of debt financing available to small and medium-sized businesses and, support the development of more diverse financing markets for small and medium-sized businesses. British Business Bank has provided RateSetter with an investment and for each loan that qualifies under agreed criteria, the British Business Bank will be one of the investors for this loan.

 

How much can I borrow for my business?

We provide Commercial Loans between £25,000 and £750,000 which you can find out full information about Commercial Loans and how to apply on our business loans page. 

We also provide business loans below £25,000 can only be provided personally to the owners of the business. For more information and to apply read more on our personal loans page.

 

What types of Real Estate Finance do RateSetter offer?

RateSetter provide both property development finance and investment property finance. Development finance is lending to develop or convert properties. Investment property finance is lending for properties that are being used to earn income via lettings to third parties. 

For development finance we will lend up to 75% of the total costs, including construction, legal and finance; and up to 65% of the Gross Development Value of the development. 

For investment property finance we will lend up to 65% of Market Value.

 

How can I apply for a real estate loan?

Any experienced property developer or property investor can apply for a real estate loan. We can lend to individuals, partnerships or limited liability companies. 

If you fall within these categories you can make an enquiry by emailing [email protected] or calling 020 3142 6226, with details of your proposal, including the borrowers name, the amount your wish to borrow and any other relevant information.

 

Do RateSetter lend to businesses?

Yes we do lend to businesses. These are predominantly loans with a value between £25k and £750,000, however larger loans are considered on a case by case basis. We also undertake real estate lending, you can find out more about real estate loans in the real estate FAQ. 
Our commercial loans are taken through a rigorous credit approval process. We also look for certain eligibility criteria before businesses would be considered. 

• UK based; businesses operating within the UK 
• Financials; businesses must provide their last 2 years audited accounts and/or management accounts

 

Do RateSetter offer real estate loans?

RateSetter do offer some real estate loans to experienced property developers and investors with excellent track records. We assist them with funding new developments and renovations, which are primarily residential, plus existing investment properties. Our real estate loans are up to £7.5m. 

RateSetter fully assesses the people behind the business and the underlying real estate to ensure the funding is viable. We undertake this on a conventional basis, looking at financial information both historic and projected, but also a hands on review of the real estate. 

Our team of underwriters have lengthy experience and fully qualified to make an assessment on each and every deal.

 

Why do RateSetter provide business investing as well as retail?

The more people who join the RateSetter marketplace and the wider the participation, the stronger the market gets - which benefits everyone. Our job is to build the diversity of the RateSetter marketplace so we can provide our investors with opportunities that deliver the returns they expect alongside the detailed borrower assessment they have become accustomed to and our borrowers with a source of reliable funding at competitive rates. All of our lending undergoes rigorous assessment by our specialist credit underwriting teams against stringent criteria. We carefully examine their credit file, personal or business finances and circumstance to understand their financial position and ability to service the loan.

 

What are RateSetter's default rates?

At RateSetter we’re committed to providing transparent information, including what our default rates are. You can get stuck in to the numbers on the RateSetter loan book performance page.

 

Is [email protected] a RateSetter email address?

Yes, this is one of our email addresses. We use it to deliver RateSetter service and promotional messages.

Please add [email protected] to the safe sender list in your email software, this will ensure you don't miss any of our communications.

 

How does RateSetter manage conflicts of interest?

In line with FCA requirements, RateSetter has a policy to identify and manage any conflicts of interest that arise as a result of business activities. We actively monitor for and identify conflicts of interest and ensure mitigation of any risk of customer detriment that could can result. Our policy is to always act in the best interests of our customers and uphold the highest moral and ethical standards at all times.

How RateSetter works

Can I get a quote without applying for a loan?

Yes. Our quotes carry no obligation for the Borrower. If you register for a quote, we’ll ask you a few questions so we can tell you how much you can borrow with RateSetter and your likely APR. We'll then carry out a "soft search" of your credit history with our credit reference agency. This won’t have any impact on your credit score. This process is completely free and without obligation - Borrowers only pay a fee if they decide to take out a Loan - the fees and the interest are spread out over the entire term of the loan, there is nothing to pay upfront. 

Get a Smart Quote

Do I have to take the Loan immediately after I've been approved?

From the point of your application being approved, you can log in to your account at any point up to 2 weeks to accept your loan online. If you would like to wait before accepting your loan, once the 2 weeks have expired there will be a link in your account to"Reinstate Credit Request." If you click on this link, we will reinstate your credit limit so you can take out your loan provided your financial status has remained consistent since the original application. 

Is there a limit to how much people can borrow through RateSetter?

Every borrower is given an individual limit depending on their credit history, financial position and ability to afford the loan and taking into consideration whether the loan is secured or unsecured.

Who can invest with RateSetter?

To invest with RateSetter you must:

    - have a UK bank account,  and 
    - be at least 18 years of age. 

We will also need to be able to confirm your identity. We can usually do this automatically, but occasionally we will have to confirm details with you directly. 

All Investors are responsible for paying UK income tax on their interest earned through RateSetter. The tax you have to pay is dependent on your individual circumstances and subject to change. It is your responsibility to pay the correct tax on your earnings through RateSetter. 

Register to Invest

What's the minimum and maximum amount I can invest?


Our minimum investment amount is £10 and there is no maximum investment limit, although RateSetter might limit the amount an individual can invest in any single market. 

Register to Invest

Does RateSetter charge Investors a fee?

As of May 2014, you can invest funds through RateSetter without incurring any investor charges or fees. Contracts formed before this date were subject to a 10% Investor fee. 

RateSetter Fees

Can a Company or Trust invest through RateSetter?

Yes, if investing money isn’t its main business, a Company or Trust can invest with RateSetter as part of managing their treasury and cashflow. 

What happens if a Borrower misses a payment?

All borrowers pay a risk-adjusted fee into the Provision Fund. If a borrower misses a payment, the Provision Fund reimburses investors; if the loan goes into default, the Provision Fund takes over the loan and repays outstanding capital to the investors. 

View Provision Fund

Should I diversify my Loans?

RateSetter does not split your loans across multiple Borrowers. Our Provision Fund is there to mitigate the risk of individual Borrowers defaulting – if a Borrower fails to pay, then the Provision Fund steps in to compensate the Lender. Every Borrower on RateSetter has contributed to the Fund: this means that there should be no reason to diversify your loans, because the risk of default is already diversified across all the Borrowers and has accumulated in the Provision Fund. You will often find that you do have multiple loans or contracts as your money is matched in the normal course of things, but there is no reason to actively manage your savings to seek out multiple Borrowers. 

The Provision Fund is well capitalised – you can see the details of the Fund in real time, including any claims. As you would expect, the size of our largest potential single loan is in direct proportion to the capitalisation of the Fund: we wouldn’t allow the Fund to become overly reliant on any single Borrower. The most important thing is that we are finding the right kind of people, who are creditworthy, reliable and can afford their monthly repayments. RateSetter currently declines over 85% of the applications made for this reason. An unfortunate fact is that we will have the occasional default as circumstances change: at this point the Provision Fund will be there to protect the Lender (see “Who am I lending to?” for more information). 

View Provision Fund

What do Investors know about me? Do they know who I am?

RateSetter is an anonymous service. Our Investors don’t know anything about you other than a reference number and the details of how much money you want to borrow, the APR you want to pay and the length of your loan. All credit, affordability and suitability checking is done by RateSetter, and is not displayed on our website. 

Privacy Policy

Who can borrow through RateSetter?

Our borrowers are both individuals and businesses. To borrow with RateSetter as an individual you need to be at least 21 years old, have a good credit history and a regular income. Unfortunately, we are unable to accept applications from residents of the Channel Islands or from those living abroad. 

Who am I lending to?

RateSetter is an anonymous service and all credit, affordability and suitability checking is done by RateSetter, and is not displayed on our website. 

Some other peer-to-peer sites let you judge the potential borrowers so you can make a decision about a specific borrower or types of borrowers. At RateSetter we do the work for you – we take borrower applications, vet them, and take a Credit Rate from successful applicants which grows the Provision Fund. We think this is a simple way of managing risk. The Personal and Commercial borrowers who are accepted are creditworthy and have been rigorously assessed by our specialist Credit Underwriting Teams against stringent criteria. We carefully examine their credit file, personal or business finances and circumstance to understand their financial position and ability to service the loan. The majority of loans are unsecured but we also write some secured loans. We don’t judge simply on the basis of how much they want to borrow: it is very important to understand whether the loan is affordable for the borrower in the context of monthly personal or business outgoings. This stringent process means that we actually decline the majority of applications. Those who are accepted are exactly the people or businesses that our investors would expect: creditworthy borrowers who can sensibly afford a loan. 

How do I transfer funds into RateSetter?

Registered RateSetter members can transfer funds to RateSetter by Bank Transfer, Debit Card, Regular Lender Instruction or Standing Order - the terms for each are set out in the table below. To transfer funds, log into the 'Lending' section of your account and follow the simple instructions under the "Money In" tab. 

Using our Regular Lender feature you can now arrange for monthly deposits to be paid into your RateSetter account via Direct Debit Instruction. This feature also allows you to automatically lend funds in the market of your choice. We aim to credit all funds to your RateSetter account within 1 working day. To set up a Regular Lender instruction, simply login to your RateSetter account and follow the instructions under the "Regular Lender" tab. 

Deposit Method Credited to Account Fees Minimum Deposit
Bank Transfer Same day before 5:30pm Free £10
Debit Card Immediate Free £10
Standing Order Next working day before 5:30pm Free £10
Regular lender Next working day before 5:30pm Free £10

 

How do I withdraw Funds from RateSetter?

Withdraw from your Holding Account
To withdraw funds from RateSetter to your designated bank account, log-in to 'Your Account' and click the "Withdraw"link on the left hand menu. You can withdraw available funds from your "Holding Account" at any time using the methods in the table below. 

Drawdown 
Alternatively, if you have money on loan, you can view upcoming repayments using the "Drawdown" feature on the Withdrawal page. This feature can over-ride any upcoming reinvestments, and return it to your Holding Account as the funds are repaid by your Borrowers. Once the money is in your Holding Account, it can be withdrawn to your bank using the methods below. 

Withdrawal Method Credited to Bank Account Fees
Faster Payments Next Day by 4pm Free

 

How does the Provision Fund work?

RateSetter pioneered the Provision Fund concept in peer-to-peer lending as a way to offer greater predictability for investors, allowing them to focus on setting the rate they require for their money. It has ensured that no individual investor has ever lost a penny, although past performance is no guarantee of future success. 

All borrowers pay a risk-adjusted fee into the Provision Fund. If a borrower misses a payment, the Provision Fund reimburses investors; if the loan goes into default, the Provision Fund takes over the loan and repays outstanding capital to the investors.

 

How is risk managed?

The main risk to investors is that borrowers do not repay their loans. RateSetter seeks to mitigate this risk in a number of ways: 

  • Excellence in underwriting: robust credit and affordability checks on all borrowers.
  • Portfolio management: Our loan book is diversified across many borrowers of different types and channels.
  • The Provision Fund: if a borrower misses a payment, the Provision Fund reimburses the investor; if the loan goes into default, the Provision Fund takes over the loan and repays outstanding capital to the investors.


How We Manage Risk

 

Who is behind RateSetter?

RateSetter was founded in 2010 by ex-Lazard investment banker Rhydian Lewis and former Ashurst lawyer Peter Behrens. The business has quickly garnered a user base of more than 300,000 RateSetters, with peer to peer lending taking off in the UK. 

Find out more

 

Can I see previous rates matched on RateSetter?

We display our historical rates and market information within our website. 

Historic Rates

Why is my actual rate of return less than what was displayed on the website?

Our displayed rates of return assume that an Investor is reinvesting their repayments in the same market, at the same rate. If you have calculated your rate of return and it is less than the one which was displayed on the website, this may be that you have not reinvested your repayments, or have reinvested them at a lower rate than the original rate you agreed. 


How do I apply for a loan?

All loan applications must be applied for online. Below is a short guide to applying for a loan with RateSetter.

Step 1: Get a quote (five to ten minutes)
If you ask for a quote, we’ll ask you a few questions so we can tell you how much you can borrow and your likely APR.

Step 2: We’ll confirm how much you can borrow (in one working day)

We'll check your credit history with our credit reference agency. This won't have any impact on your credit rating. We’ll email you in one working day to confirm whether you can get a loan with RateSetter and how much you can borrow.

Step 3: We’ll match you up with a Lender

You can then accept the best APR available, which will be matched immediately.

Step 4: We’ll send you the money (on the next working day)

We’ll send you the money the day after you’re matched (as long as it’s a working day).


Get a quote

 

What is RateSetter?

RateSetter is a Peer-to-Peer finance company, which essentially means that instead of borrowing from a bank, you can borrow from ordinary customers and investors for a lower APR. It’s a win-win situation; you get a lower APR and Lenders get a better return on their money. 

 

Why are your APRs cheaper than other lenders? What's the catch?

The main reason our rates are cheaper than the rates offered by the banks is that we are a Peer-to-Peer lending company. With a bank, they use deposits from savers to lend to Borrowers and charge high APRs, keeping the profits for themselves. With us, you get to cut out the banks and borrow direct from Lenders and investors. Most of them are ordinary people wanting to get better interest rates than if they were to put their money in a savings account and so they are happy to accept lower APRs than the banks would charge. As we are internet based, we also don’t have the same overheads as banks do with multiple branches, so this helps keep the costs down.
 

Does RateSetter charge Borrowers a fee?

When you apply for a loan, we will tell you all the fees which apply. In addition to the loan and the interest, you will be charged the administration fee and the Credit Rate fee. The fees payable will be dependent on how much you would like to borrow, the repayment term and your personal credit profile. There is nothing to pay up front, all the fees are spread out over the monthly repayments and are included in the total amount repayable.
 

What is RateSetter?

RateSetter is a Peer-to-Peer finance company, which essentially means that instead of putting your money into a savings account, you can lend it direct to Borrowers and enjoy a higher return.It’s a win-win situation; you get a higher interest rate and the Borrowers get a lower APR for their loan.

Find out more

 

What is "Market Rate"?

Once a Loan is matched, a Lender is repaid over the term established in the contract. When a repayment is made, the Lender decides whether to reinvest or withdraw. The “Reinvestment” tab in “Your Lending” allows you to automate these decisions.

 

The “Market Rate” setting is one of these reinvestment options - it is set daily and is designed to ensure the Lender’s money is re-invested as quickly and efficiently as possible. How it works: 

 

The Market Rate is automatically calculated in each market every day. The rate is set by taking a weighted average of all the rates transacted during the previous day between 6am and 10pm. The Lender’s repayment is then submitted to the market as an order. If the order is not matched on that day, it will be updated to the next day’s Market Rate should it be lower. 

View Current Rates

If I deposit funds into my account, how long before it is matched to a Borrower?

This can vary from a few minutes to several days or more. It all depends on what rate you are offering and what the Borrowers are willing to accept.
 

Why borrow through RateSetter?

Many Borrowers choose to borrow through RateSetter as our APR rates are often much cheaper, we have no early repayment fees and accounts are easy to manage online. Add that to the speed of our application process (instant quote available online, and 1 day to receive a credit decision), and it’s a winner. Not to mention our lovely customer service team, who are available at the end of the phone to help you with any questions you may have. 

Get a Smart Quote

How do I change the rate of an offer already on the market?

Please login to your account and click on 'Your Lending'. On the left hand side of the page, there is a menu of options. Directly under the 'Your Portfolio' section, please click on the relevant market which contains the order you would like to change. When the main market page comes up, click on the plus sign next to 'Unmatched' to expand that section. You will then need to click on the 'change' link on the right-hand side of the order number.

 

Can I invest funds through a SIPP?

Yes, peer-to-peer loans can be included in SIPPs. If you are interested in lending through your SIPP, please ask your SIPP provider. Peer-to-peer lending is a relatively new form of investment and so understandably a lot of SIPP providers are unsure about it but technically there is no reason you cannot include your peer-to-peer investments like RateSetter in your SIPP. If your SIPP provider wants to understand more about RateSetter, please do ask them to get in touch with Ceri Williams at RateSetter on 02031764494 who would be delighted to help.

 

Can I access my money on loan in an emergency?

You can access your money that is on loan at short notice using the "Sellout" function. Sellout will allow you to sell your contracts provided there is a new lender available to match your existing loans. On the Sellout page, enter the amount that you would like to withdraw from any given market. Click "Calculate" and RateSetter will automatically identify the amount of loans to be sold to achieve the amount you would like to access. It will show the calculation of the interest to be paid and any fees due. You can then click to proceed. 

The Sellout function can be found by clicking on the "Withdraw" page of the Lender account, and selecting the "Sellout" function at the bottom.

 

What is Regular Investor?

The Regular Investor feature allows you to set up an automated investing instruction on your RateSetter account. It consists of two parts - a Direct Debit instruction to your bank, and an investing instruction for your RateSetter account. Each month, RateSetter will draw down your payment from your bank, and automatically submit it as a loan request according to your instructions. 

Regular Investor is set up by filling in the simple form, and found by clicking the "Regular Investor" link in the "Instructions" menu of your account.

 

What is "Your Rate"?

Once a Loan is matched, a Lender is repaid over the term established in the contract. When a repayment is made, the Lender decides whether to reinvest or withdraw. The “Reinvestment” tab in “Your Lending” allows you to automate these decisions. 
For those RateSetters who want control you can select your own rate to reinvest at. This will not be impacted by the market and offers your money at the exact rate you set. Selecting this option does mean that your money could sit on the market not earning interest if your rate is too high. Similarly, if you set your rate too low you may not get the maximum return that is possible. It does, however, give you complete control. 

Payments

If I apply for a loan, how long will it take before the money is in my account?

When you apply for a loan through RateSetter, we will give you a lending decision within 1 working day. Once you have accepted the loan, the funds will be transferred in to your account on the next working day. 

Do I have to take the Loan immediately after I've been approved?

From the point of your application being approved, you can log in to your account at any point up to 2 weeks to accept your loan online. If you would like to wait before accepting your loan, once the 2 weeks have expired there will be a link in your account to"Reinstate Credit Request." If you click on this link, we will reinstate your credit limit so you can take out your loan provided your financial status has remained consistent since the original application. 

 

Can I pay some or all of my loan off early?

Yes, you can pay off all or part of your loan early at any time and there are no early repayment fees. You can make additional payments, increase your monthly instalments or repay your loan off in full; all these functions can be managed online. 

 

What happens if a Borrower misses a payment?

All borrowers pay a risk-adjusted fee into the Provision Fund. If a borrower misses a payment, the Provision Fund reimburses investors; if the loan goes into default, the Provision Fund takes over the loan and repays outstanding capital to the investors. 

How do I transfer funds into RateSetter?

Registered RateSetter members can transfer funds to RateSetter by Bank Transfer, Debit Card, Regular Lender Instruction or Standing Order - the terms for each are set out in the table below. To transfer funds, log into the 'Lending' section of your account and follow the simple instructions under the "Money In" tab. 


Using our Regular Lender feature you can now arrange for monthly deposits to be paid into your RateSetter account via Direct Debit Instruction. This feature also allows you to automatically lend funds in the market of your choice. We aim to credit all funds to your RateSetter account within 1 working day. To set up a Regular Lender instruction, simply login to your RateSetter account and follow the instructions under the "Regular Lender" tab. 

Deposit Method Credited to Account Fees Minimum Deposit
Bank Transfer Same day before 5:30pm Free £10
Debit Card Immediate Free £10
Standing Order Next working day before 5:30pm Free £10
Regular lender Next working day before 5:30pm Free £10

 

How do I withdraw Funds from RateSetter?

Withdraw from your Holding Account

To withdraw funds from RateSetter to your designated bank account, log-in to 'Your Account' and click the "Withdraw"link on the left hand menu. You can withdraw available funds from your "Holding Account" at any time using the methods in the table below. 

Drawdown 
Alternatively, if you have money on loan, you can view upcoming repayments using the "Drawdown" feature on the Withdrawal page. This feature can over-ride any upcoming reinvestments, and return it to your Holding Account as the funds are repaid by your Borrowers. Once the money is in your Holding Account, it can be withdrawn to your bank using the methods below. 

Withdrawal Method

Credited to Bank Account

Fees

Faster Payments

Next Day by 4pm

Free

 

Why is my actual rate of return less than what was displayed on the website?

Our displayed rates of return assume that an Investor is reinvesting their repayments in the same market, at the same rate. If you have calculated your rate of return and it is less than the one which was displayed on the website, this may be that you have not reinvested your repayments, or have reinvested them at a lower rate than the original rate you agreed. 

 

What happens if I miss a payment?

If you are having difficulties please contact our payments team on 020 3841 9950 between 9am and 6pm and we’ll work with you to make sure your payment goes through. If you are experiencing financial difficulties please call 020 3841 9950 or email [email protected].

We take missed payments seriously: the money we’re collecting is our investors’ money - they’ve invested their own funds, by lending to you, and we’re acting on their behalf.

If you miss a monthly payment, we’ll contact you via text and email, and try to take the direct debit from your bank account again, usually around one week later. If we’re still unable to take a payment, we’ll continue to contact you – we’ll write to you, send you a text and also call.

If we still haven’t received your payment after 90 days your loan will go into default. Defaulting on a loan is bad for your credit history and may cause you problems in the future, so we’ll give you at least 28 days’ notice before this happens.

If we still don’t receive a response from you we’ll work with our debt collections agency to make a recovery, or your debt could be sold to a third party.

 

How does RateSetter collect repayments from borrowers?

Payment is arranged by direct debt, to be collected once a month. Your first repayment is usually scheduled to be debited one calendar month after you accept your loan. You can change your direct debit date online, through your RateSetter account. If you have already begun to make repayments on your loan, please bear in mind that we require at least 10 workings days notice before the direct debit is due to come out of your account for the changes to take effect. If you change you direct debit instruction with less than 10 days notice, the changes will take effect for the following month.

This can vary from a few minutes to several days or more. It all depends on what rate you are offering and what the Borrowers are willing to accept.

Yes, we have a new account feature where you can select to withdraw the interest from an investment, whilst re-investing the capital. This will allow you to draw an income, whilst leaving the capital untouched. 


Alternatively, you can still choose to reinvest all the funds (capital and interest) if you wish to. You can also control these settings on each individual market through your reinvestment page. 

We have a new Auto-Withdrawal feature, which enables you to choose the intervals at which the funds are sent and choose the specific day on which the funds are withdrawn. If you would like any help using this new feature, please contact our customer service team on 0203 142 6226 and they will be happy to advise you. 

Please note that you will need to have made a successful withdrawal before being able to use the auto-withdrawal feature.

 

What happens if I am having difficult repaying my business loan?

What happens if I miss a monthly repayment? 

If you miss a monthly repayment, a notice of sum of arrears will be issued and we will attempt to take a direct debit payment within the next 5-days. If you’re struggling to service your borrowing please contact us immediately.

What happens if my business enters a form of insolvency? 

If your business enters a form of insolvency please contact us immediately and we will liaise with the parties dealing with this matter.

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