UK-based peer-to-peer lender RateSetter recently announced its ISA has now passed the milestone of attracting £200 million in subscriptions. RateSetter claimed that the ISA is considered to be the most popular Innovative Finance ISA in the market. The online lending platform also revealed that one in three RateSetter investors have opened an ISA and are enjoying attractive returns, tax-free.
“Investors have enjoyed an average annualised return of 4.5%, tax-free of course, since the RateSetter ISA launched in February 2018. The average RateSetter ISA balance stands at £11,000.”
While sharing more details about the milestone, Mario Lupori, Chief Investments Officer at RateSetter, stated:
“Passing £200 million in subscriptions to our ISA, in just over one year, is a good milestone and a sign of things to come. It takes time for financial innovations to build profile and trust, and the IF ISA is no different. We’re making strong progress and it’s clearer than ever that investors find our products attractive. IF ISAs and P2P investing do not have to be high-risk. We are showing this on a daily basis by delivering healthy returns based on investment against a diverse and stable portfolio of high-quality loans.”
Ratesetter went on to explain to date, every individual investor has received all the capital and interest that they expected thanks to the Provision Fund which spreads each investor’s risk across the whole loan portfolio (currently £860 million funds under management) and provides a buffer against poorly performing loans. The track record over the past eight years is impressive, but it is not a guarantee for the future and capital is at risk. RateSetter then added:
“In total, more than 600,000 customers have used RateSetter to invest or borrow, making it the UK’s most popular peer-to-peer lender. RateSetter has originated more than £3 billion of loans in total generating £125m in returns for investors to date.”