RateSetter break £50million barrier

January 21st, 2013

RateSetter have broken the £50million barrier, in terms of the loans they have arranged.  This is a fantastic achievement for a peer-to-peer company.  January and February are typically very busy months for personal loans, so expect to see this figure increase still further.

Well done to everyone at RateSetter, and their borrowers and lenders.

Funding Circle fills £1M loans in hours

January 18th, 2013
Funding Circle

Lenders of Funding Circle have managed to fill over £1million of new loan requests within a matter of hours, including one loan for £200k.  There was a time when loans would only be filled within the last few days of an auction, whereas now they are filled within the first few hours of a 1 week or 2 week listing period.  This is good news for borrowers as currently borrowing demand is less than the supply from lenders, but as the rate of borrowing increases I would expect this to move towards more of an equilibrium.

P2P companies allows lenders to sell early

January 18th, 2013

RateSetter has added new functionality that allows lenders to cash-in individual or multiple micro-loans early.  Also this month ThinCats introduced a similar feature.  This brings these two P2P companies into line with Zopa, Funding Circle and Encash (YES-secure) who already allow lenders to cash-in early.

RateSetter have taken a slightly different approach by reducing the interest rate to what the lender would have received if they lent on a shorter market.  An example would be if a lender invested their funds over 5 years, but wanted to cash-in after 3 years, their rate would be reduced to what they would have recieved if they had only lent the money for 3 years.  There is also a fixed 0.25% fee, which is the same as ThinCats and Funding Circle, but less than Zopa (1%) and Encash (1%/2%).  As RateSetter use a market based model the sell will be instant, as Zopa, while ThinCats use an auction model, along with Funding Circle and Encash.

This is another positive development in the peer-to-peer arena, and should help encourage new lenders to join.

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RateSetter increases cashback to £20

January 11th, 2013

RateSetter has increased their cashback offer to an amazing £20 for new lenders who invest and lend out £100 or more by 31st January 2013, which represents up to a massive 20% return on investment.  With rates on the 3 year and 5 year fixed rate loans starting to rise, now is an excellent time to become a lender on RateSetter.

RateSetter is the only major peer-to-peer provider to have a provision fund, which will step in to refund lenders if the borrower cannot repay for any reason.  While this isn't a guarantee, no lender on RateSetter have lost any money at all to bad debt.  Default rates are currently 0.29% which is very low compared with the industry.

New lenders can sign-up to RateSetter through the P2P money cashback site.

Rates fall on peer-to-peer lending

January 8th, 2013

Rates on on main peer-to-peer lenders Zopa, Funding Circle and to some degree RateSetter, have fallen over the last few weeks with lending supply currently outstripping borrower demand.  Over the next month this trend will be reversed with an increase of borrowers looking for low rate loans after Christmas.

If borrowers wish to take advantage of this drop in rates they should act quickly before they rise !  In past years the rate of increase in January and February has been quite significant.  There are still some cashback offers available, so borrowers can take advantage of low rates and cashback.

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