Managing supply and demand

By Mario Lupori

RateSetter aims to be the destination of choice for people looking to earn more on their money - offering more earning potential than cash without the volatility of shares. In eight years we have come a long way: you, together with 70,000 other investors, have lent £3 billion to 550,000 borrowers across the UK.

You can choose to invest between three markets on RateSetter. Our Rolling market is optimised for free and flexible access; our 5 Year market rewards longer-term investments. Positioned in-between is the 1 Year market which is currently the smallest of the three, with 15% of total funds.

Currently, it is only the 1 Year market that can fund loans that repay your money plus interest at the end of the term as opposed to loans that pay it back in monthly instalments. Borrower demand for these loans is strong and, while investor supply in the 1 Year market is also strong, it has not grown to a similar size as the Rolling and 5 Year markets.

In February, we are planning to add the functionality for the Rolling market to be able to fund these loans. This will further enhance the depth of the Rolling market, improving access for investors and providing greater certainty of funds for borrowers.

The Rolling market will continue to work as it does now, with your money matched to borrowers for the term of the loan and you can request access to it any time, at no cost.