Ratesetter is the largest peer to peer lending company in the United Kingdom. Peer to peer lending is becoming an increasingly popular way to borrow money.
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Ratesetter is the largest peer to peer lending company in the United Kingdom. This means that customers can lend money directly from other individuals, rather than having to go through banks or building societies, or traditional online loan providers.
The company is authorised and regulated by the Financial Conduct Authority, and based in central London. Ratesetter were founded in 2009 under their holding company, Retail Money Market Ltd. The founders were Rhydian Lewis and Peter Behrens, both investment bankers.
Peer to peer lending is becoming increasingly popular as it can provide benefits to both borrowers and lenders. Customers who are borrowing the money may enjoy more flexibility than they otherwise would, as well as receiving a lower APR. The lenders who invest in the site can expect to receive a higher return than they would through investing their money in a traditional savings scheme.
The company has stricter lending criteria than many other peer to peer lenders, and around 15 percent of applicants are accepted. They are a founder member of the P2P Finance Association, and have announced plans to expand into Australia and other territories.
Another innovation within the peer to peer market that they’re responsible for is the ‘provision fund’. This means that borrowers have to pay a fixed fee depending upon their credit rating. This goes into a collective pool that’s used to reimburse lenders if the borrower becomes unable to pay.
Borrowers using Ratesetter can apply for a personal loan that lasts between half a year and five years. The amount that can be borrowed varies depending upon the individual applicant, but online applications can be done very quickly and the money can be in a customer’s account within 24 hours.
Payments are made online, and borrowers can pay early, pay extra amounts, or settle the loan completely, without being penalised.