P2P Lending explained


Benefits of peer-to-peer lending with RateSetter

RateSetter was founded in 2010 and 51,730 investors have used the platform to lend a total of £1,800,771,842.

  • Peer-to-peer lending is an investment, rather than a savings product, so it doesn’t benefit from FSCS cover and your capital is at risk. To manage risk, we have a £14,414,003 Provision Fund which has ensured that no individual investor has ever lost a penny. Past performance is not a guarantee of future results, but it’s a track record that we’re proud of and highly incentivised to maintain.

Here are a few more benefits of peer-to-peer lending with RateSetter:

  • You can earn as much as 5.7% (annualised rate, pre-tax).
  • Access to your funds– you can get to your money anytime for a small fee with our sell out option, so long as we have a new investor to take your place. We’ll reduce the rate to reflect the length of time you’ve actually invested for (so that if you invested in the one year product but took your money out after a month, you’d get the Rolling rate, for example) and, if rates have risen since you’ve invested, you’ll need to pay the difference between the two to ensure that the person taking on your loan parts gets a fair deal. Find out more about how to access your funds.
  • Our investors benefit from the protection of the 116% Provision Fund. Although past performance is not a guarantee of future performance, we’re proud to say not a single investor has lost a penny by investing through RateSetter to date.
  • RateSetter is regulated by the Financial Conduct Authority (FCA)
  • Easy to get started – You can start investing with as little as £10
  • Our customers trust us – more than 1500 people have reviewed us on Trust Pilot, giving us a score of 98%.

What are the rates?

Rolling market

2.3%Annualised rate
Repaid upon withdrawal

  • Loan terms: Your money will be invested in loan terms between 6 months and 5 years
  • Earning: : Your loans are continually repaid and reinvested at the prevailing Rolling market rate. Your interest accrues for every day that your funds are on loan.
  • Access: You can access your money freely as long as there are funds in the market to replace the amount being withdrawn. This could come from money already rolling in the market, new investors or funds set aside by RateSetter. If replacement funds aren’t available, your money will be returned as the borrower(s) repays over their loan term. To date no customer has ever had to wait for their money although it's not a guarantee. RateSetter is an investment not a deposit account.

1 Year market

3.2%Annualised rate
Repaid at term

  • Loan terms: You money will be invested in 1 year loans.
  • Earning: After 1 year your capital and interest will be repaid. If your loans are fully repaid early your money will be reinvested according to your settings.
  • Access: You can access your money early using the "Sell Out" feature. It allows you to withdraw your funds as quickly as possible provided there are funds available in the market to replace the amount being withdrawn. On average, replacements are matched within 10 minutes, and the average Sell Out fee is 0.72%. RateSetter is an investment not a deposit account.

5 Year market

5.7%Annualised rate
Repaid monthly

  • Loan terms: You money will be invested in 4-5 year loans.
  • Earning: Your capital and interest will be paid as the loans are repaid, usually monthly. If the borrower fully repays early your money will be reinvested according to your settings.
  • Access: You can access your money early using the "Sell Out" feature. It allows you to withdraw your funds as quickly as possible provided there are funds available in the market to replace the amount being withdrawn. On average, replacements are matched within 10 minutes, and the average Sell Out fee is 0.72%. RateSetter is an investment not a deposit account.