RateSetter Review | www.ratesetter.com

RateSetter

About…
Address: 406 Metal Box Factory, 30 Great Guildford Street, London, SE1 0HS.
Branding: RateSetter. AKA: Rate Setter.
FCA Licence: 633741.
From: Retail Money Market Ltd.
Launched: 2010.
Memberships: P2PFA.
Related: No companies.
Website: www.ratesetter.com.

Loan Details…
Available: Monday to Saturday (9am/6pm).
Bad Credit Considered: Fair-to-good score required.
Manage: RateSetter login provided via www.ratesetter.com.
Offers: Business and personal loans.
Sums: £500 to £25,000 (new and returning).
Terms: 6 to 60 months.

The Pricing…
£386.89/£10,000 (12)
£752.66/£10,000 (24)

Notes: Costs displayed are calculated based on the headlined rate of 7.3% APR. They don’t actually provide cost breakdowns until you have completed an application. The predicted rates for smaller sums should sit close to 25%. Decisions are made within 1 working day and if approved the funds will be transferred on the next working day. A faster turnaround is possible, but you have to pay £15 for this and you’ll also need to make their cut-off time. There confusingly note 2 times on the site at 1pm and 2pm. Paying this fee would increase the sums sampled to £401.89 (12) and £767.66 (24). Not too much is asked for when it comes to qualification other than the applicant being aged at least 21. Business loan lending is also available up to the same £25k unsecured. There is however a larger secured option.

Noteworthy…
– Amounts: The borrowing limit extends to £25,000. Businesses can apply for up to £1 million on secured agreements.
– International: Launched in Australia back in 2014. They had only launched locally in October 2010 and so it has been interesting to see expansion arise this early.
– Growth: It was surprising to learn that they had more active borrowers than Zopa who started trading in 2005. The brand has also been took overseas and so it is clear that they are enjoying greater traction than rival P2P firms. The Provision Fund would have naturally helped to build consumer trust. They were the first company to offer complete protection to their borrowers and to date they have a 100% track record. Business lending has also helped them to cater wider audiences.
– Invest: There is a current headlined 5.9% return here (the average rate elsewhere sits closer to 5%). Whilst a greater return may be available, on the other side they don’t offer market leading rates. If you join up today you do receive a £20 welcome bonus when investing £200 or more. The Provision Fund helps to keep your money protected.
– Operations: Customer support is available on Saturdays between 9am and 6pm. Payouts are only made on working days though.
– Profile: RateSetter loans have proved popular since they arrived in late 2010. At the time of this submission they had 152,332 active borrowers that is higher than Zopa’s at 110,000. There are close to 29,000 investors that is a little shy on Zopa’s tally of 59,000. The actual number of registered users on the site has been referenced on Wikipedia as 995,000 although we could find no confirmation. This company is promoted on all of the leading comparison sites and there are many partners now promoting the brand (Giffgaff is one such dedicated introducer). In the years ahead it will be interesting to see how well they can progress with their business loan product where they face heavy competition, particularly from Funding Circle.

Updates…
– Rates are frequently being updated. When this profile was composed they headed 6.6% APR. When we checked back a few hours later this had jumped up to 7.3%.

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