Life After Ratesetter

not stupid at all. you know your means and risk. you took the best choice for you. an envious postion for many.

Full announcement

Today we are announcing that Metro Bank is purchasing the RateSetter loan portfolio in line with Metro Bank’s strategic objective to grow in consumer loans.

Metro Bank has been funding all new consumer lending following its acquisition of RateSetter in September 2020, since when the investor loan portfolio has been in run off. Today’s announcement follows the subsequent sale of RateSetter’s residential property development portfolio, a line of lending which is not an area of focus for Metro Bank, and was made possible by Metro Bank’s recent sale of a £3bn residential mortgage portfolio, which freed up capital for the purchase. The performance of the consumer loan portfolio has allowed the purchase to be at full value, despite the ongoing economic uncertainty.

The portfolio purchase means that all RateSetter investors will receive their money back in full and the investing side of RateSetter will close. In line with our Investor Terms we are providing two months’ notice of account closure and so this will happen on 2 April 2021.

What happens now?
All invested money will return to your Holding account from 2 April 2021, as will money on market. This process is expected to take five days. Naturally, no investment release fee will apply to money returned to your Holding account from the purchase. Invested money will continue to earn interest until then and repayments will continue to be treated in line with your account settings until then too.

We will contact you again when all your money is in your Holding account. You may wish to check that your bank account details are up to date in your RateSetter account ready for your withdrawal. If you have a RateSetter ISA, when your money returns to your ISA Holding account you may withdraw it or move your ISA to another provider by asking your new ISA provider to arrange the transfer.

Thank you for being a RateSetter investor
We launched over ten years ago and grew to be the UK’s most popular P2P platform, attracting over three quarters of a million investors and borrowers. We are proud to have delivered an average annual return of 4.4%, while our credit management and pioneering Provision Fund ensured no investor ever lost a penny of capital – a unique track record that has been maintained throughout the current time of economic uncertainty and through to the purchase we are announcing today.

Going forward, RateSetter will focus on being a market-leading consumer lender consistent with Metro Bank’s strategy to grow in consumer finance.

it would appear everyone was wrong - we all get/got our money back.

Martin Lewis has a convincing argument that it's not helpful to think of the 1% as being an "average" rate. He argues that for most people, the "average" rate will be much less than 1%, on average.

Our money has long gone having chickened out and paid fees to withdraw. Most has been spread around the best rates at the time we released funds. Varies from 2.5% to 0.5% most are regsavers. Pushed a large sum into PB's having removed a large amount from Investment side of NS&I when rates went south. 

I thought it was gambling a little but at least it was covered 100% and safe. So we got our first amount into last month and that got us £25 on 26k - we have ours settings to reinvest. This month having moved further funds in we got 3x£25 so we are not doing badly - next few months will probably be less.

Still have day 6 months buffer in Marcus @ .5% and move money as required. 

Still need to get a full picture of returns on our ratesetter experience, sales fees did hit us, but we did not lose a penny in capital and with the rates we did have >5% and some more I need to do this months stats - we still have about £30 in the 4 accounts we have but to be honest now that the rates are back they will still deliver until the final closure.

All in all a good experience and if it were not for covid we would have well an truly won!

Thanks RS for a good experience good luck in the outside world.... 

One in the NS&I at them moment but quite a few across many platforms - only 2 P2P though. I've got spreads coming out of me earholes literally - great fun though. Mrs Aju allows me the freedom to work in her best interests too.

Sssh, Mrs Aju will be wanting me to do some gardening if she spots this hedge comment.

Seriously though if I understood what a hedge fund manager actually does I guess you might have a point. I do keep a very close eye all things financial and try to read the papers - the free ones and the ones i can see that don't know i can still see them too - everyday as time allows. (Mrs aju wants to replace our sick phones so her whatsapp convos keep up! too)