RateSetter, a leading UK based peer to peer lender, announced on Tuesday that Metro Bank is purchasing its loan portfolio in line. RateSetter reported that Metro Bank has been funding all-new consumer lending following the RateSetter acquisition, which took place in September 2020.
“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.”
RateSetter further revealed the portfolio purchase means that all RateSetter investors will receive their money back in full and the investing side of RateSetter will close. The lender will be providing two months’ notice of account closure and so this will happen on April 2nd. This process is expected to take five days.
“Naturally, no investment release fee will apply to money returned to investor’s Holding accounts from the purchase. Invested money will continue to earn interest until then and repayments will continue to be treated in line with investors’ account settings until then too.”
RateSetter then noted:
“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.”
RateSetter went on to add that going forward it will focus on being a market-leading consumer lender consistent with Metro Bank’s strategy to grow in consumer finance.