A diversified portfolio.

A diversified loan portfolio

Responsible lending to creditworthy borrowers

We never forget we're looking after your money. Your money is only lent to borrowers who are creditworthy when the loan is granted and can demonstrate that they are able to pay back the loan. Borrowers’ creditworthiness may change over time and cannot be guaranteed. Your initial investment and any reinvestments could be matched with new or existing loans to individuals, businesses, property developers and existing loans to other lending businesses (specialist financial businesses who lend onwards to individuals and businesses – although this is now discontinued as a source of new lending). Secured motor finance (individual loans secured on the vehicle) has also been discontinued as a new source of lending.

Our loan portfolio

Individuals

Unsecured   
Purpose Car purchases, home improvement loans, debt consolidation and retail purchases
Loan size

Typically £500 - £35,000 (in certain circumstances up to £100k)

Interest rates

Typical borrower APR: 3.9% to 49.9%

Sources of loans Direct to RateSetter, price comparison websites, other partnerships
Protection
  • Loans are typically unsecured, except certain motor loans which were secured on the vehicle
  • Provision Fund provides “first-loss” buffer against credit losses
Expected future losses

Estimated based on quantitative analysis of actual loss data 

Securities No security
Guarantees

No guarantees

 

Secured  
Purpose Car purchases, home improvement loans, debt consolidation and retail purchases
Loan size

Typically £500 - £35,000 (in certain circumstances up to £100k)

Interest rates

Typical borrower APR: 3.9% to 49.9%

Sources of loans Direct to RateSetter, price comparison websites, other partnerships
Protection
  • Loans are typically unsecured, except certain motor loans which were secured on the vehicle
  • Provision Fund provides “first-loss” buffer against credit losses
Expected future losses

Estimated based on quantitative analysis of actual loss data 

Security
  • Loans were secured against the vehicle purchased
  • Selected vehicles are fitted with a tracker/immobiliser
Guarantees No guarantees

 

Lending criteria at application Unsecured and Secured

  • UK resident with ID and residency confirmed
  • All applicants assessed for creditworthiness and affordability (using, at a minimum, credit reference agency and application form data)
  • Applicants must be at least 18 years old at the point of application
  • No Bankruptcies, Individual Voluntary arrangements (IVAs), Debt relief orders (DRO) or Trust deeds

Additional lending criteria for Unsecured

  • No recent defaults on the credit file
  • No unemployed applicants (self-stated)

Businesses

Purpose Hire purchase agreements to small and medium sized businesses
Loan size £25,000 – £750k (with 3 existing loans > £750k)
Interest rates

Typical borrower APR: 5.0% to 15%

Sources of loans Direct to RateSetter and Brokers
Protection
  • Directors typically provide personal guarantees.
  • Provision Fund provides buffer against credit losses
Expected future losses Estimated based on quantitative analysis of actual loss data
Loan Size

Up to £250k per asset or £500k per customer

Security

RateSetter will take full security over the underlying asset

Guarantees Typically, where the asset offers poor security value a guarantee from the directors / shareholders will be taken

 

Lending criteria at application

  • New and used business assets
  • 2 years’ filed accounts and 3 months’ bank statements
  • Credit searches on the business and principles behind the business
  • Financial analysis & affordability from cash flow financial statements
  • No equity finance, LBO or mezzanine debt
  • No loan which is “fiduciary” or “fronting” in nature
  • No clubs, associations, charities or trusts
  • Dealer Finance secured loans:  
  • Business owner to have minimum 2 years’ sector experience, with satisfactory track record
  • Asset-secured funding against purchased stock only

Property developers

Purpose Secured property loans typically for property development (typically up to 65% Loan To Value)
Loan size

Up to £7.5m

Interest rates

Typical borrower APR: 5.0% to 9.0%

Sources of loans Direct to RateSetter and Brokers
Protection
  • RateSetter has security against all properties
  • Provision Fund provides “first-loss” buffer against credit losses
Expected future losses

Estimated based on the strength of the property development and Loan To Value

Security

1st legal charge security only

Guarantees Guarantees from directors/shareholders

 

Lending criteria at application

  • Min. 5 years previous development experience of similar schemes
  • Min. 20% equity, typically cash; max loan to costs of 80%
  • Max. 65% loan to value
  • Planning permission to be held
  • Min 10% contingency on hard construction costs

Lending businesses

(new Lending discontinued in Dec 2016)

Purpose

Lending to individuals and businesses via third party specialist lenders (e.g. motor loans, guarantor loans)

Loan size
  • £2m up to £32m per lending business
  • They lend onwards to individuals (£1-10k) and businesses (£40-100K)
Interest rates

Lending business borrows at: 7% to 10%. Typical end-borrower APR: 40% to 60% 

Sources of loans Direct
Protection
  • Third party lending business provides “first loss” buffer
  • Provision Fund only takes losses if the lending business defaults
Expected future losses

Estimated based on the probability of third party default and the costs of RateSetter taking over and running off the underlying loans

Security

No

Guarantees No

 

Lending criteria at application 

  • Third party lending business provides “first loss” buffer
  • Provision Fund only takes losses if third party defaults
  • We no longer write new wholesale loans and existing wholesale loans are running down as they repay over time in accordance with their schedule
  • However, please note that newly invested lender money may be matched to existing wholesale loan contracts if an existing lender has release it investment

 

Access

3.0%

Annualised rate

 

No fee to release your investment

Plus

4.0%

Annualised rate

 

Release fee: 30 days of interest

Max

5.0%

Annualised rate

 

Release fee: 90 days of interest

Capital at risk. No FSCS protection. Past performance is not an indicator of future results.

Getting started

Register and verify your account

Deposit funds via debit card or bank transfer

Invest in any of our products