RateSetter sells property finance portfolio to Shawbrook Bank
RateSetter has sold its £120m portfolio of property development loans to Shawbrook Bank. The sale follows the announcement in August that RateSetter will focus on consumer finance.
The portfolio sale is a validation of the quality of RateSetter’s lending and the expertise of its property finance team. Following the sale, RateSetter’s 1 Year market, which was primarily used to fund property development loans, will close on 15 January 2021.
We have written to all 1 Year market investors with more details - investors will receive their capital in full plus accrued interest. Post the sale, the Provision Fund Interest Coverage Ratio is expected to increase slightly.
RateSetter started property lending in 2013 and provided more than £500m of finance to property developers, helping improve the quality and quantity of the UK’s housing stock through the renovation and construction of 2,300 homes across the country.