"Why do we continue to accept a financial system that doesn't work in our best interest? Why do we let banks dictate what we can and can't have? Why don't we just cut out the banks and return control to lenders and borrowers?"
In their quest to make finance fair, Rhydian Lewis and Peter Behrens found the answer to those questions - RateSetter.
Since its launch in 2010, RateSetter has become the UK's biggest peer-to-peer lending service by monthly volume.
"There's simply no reason for anyone not to invest with RateSetter, especially now that the personal savings allowance means that the first £1,000 of interest each year is tax free."
"Ratesetter is an awesome product, I love the fact that you can invest the money for a month at a time. I'm planning to ramp up my usage of RateSetter and start to use it as part of my retirement fund."
"The website is easy to use and your money is lent out quickly."
RateSetter is a simple concept. Creditworthy borrowers want a low cost loan. Smart lenders want a better return. We match them up and ensure everyone gets what they’re looking for.
RateSetter works on the basis of trust: good, old-fashioned prudence and best practise. All executed in a modern and dynamic way.
Our continuous aim is for RateSetter to be the safest and simplest way for lenders and borrowers to share value.
Traditionally, lenders “deposit” money with a bank – in effect, they lend to the bank. The bank then uses the money to lend to people and businesses. The bank gives the lender a return and charges the borrower for the use of the money. We knew there must be a way to narrow that gap so depositors get more, borrowers pay less.
So in October 2010, we launched RateSetter. Although we're not a bank, we do a lot of things like a bank. We just try to do them better. We use the latest technology and data to speed- up our processes. Everything from checking that every borrower and lender is who they say they are, to assessing a borrower's creditworthiness and matching a lender's money to a borrower's loan.
There's still paperwork and payments to be dealt with of course. But we handle this seamlessly behind the scenes and charge borrowers a small fee for it. Why only a small fee? The reason is twofold: we have modern efficient processes and being a marketplace our rates are driven by supply and demand, are kept fair.
We don't pretend to be the first company to offer peer-to-peer lending, but our way of doing things has always been different. We're now among the largest P2P businesses in the world and the largest in the UK by monthly volumes.
Of course, we’ll always need banks – they do a whole host of stuff that we don’t get involved with. But when it comes to saving and borrowing there's now a modern alternative. One that questions how things have always been done and offers a better way.
We pride ourselves on being open about how we make money as we've nothing to hide. Our money comes from charging borrowers a low, transparent fee, with no hidden charges or sneaky clauses, so borrowers get a good deal. We don’t charge lenders anything at all to invest.
The borrower fee comes from the small difference between what the borrower pays and what the lender earns. It's typically around 2%, but depends on the borrower's credit profile. The fee is included in the rate the borrower sees, so there are no extra costs to factor in.
The experience of our non-executive directors is vital in helping steer the business in the right direction.
The RateSetter team is dedicated to giving the UK public a better way to borrow and lend. We're looking for smart, fun and hardworking people who share our vision and desire to change the finance industry for the better.
If this sounds like you, we'd love to hear from you.
Hopefully you'll find answers to your questions in our FAQ section.
Still need help? That's fine. Just call us on 0203 142 6226 or email email@example.com
Here's where you can view, select and compare previously matched market rates on RateSetter. Also, check out our default and coverage ratios and see a guide to matched volumes over time.