Ratesetter investors have a home with us - Assetz Capital
Ratesetter investors ‘have a home with us’ - Assetz Capital
80,000 retail investors from Ratesetter are likely to need a new home for their money later this year, and they ‘have a home with us’ according to Assetz Capital CEO Stuart Law.
According to press statements this morning, the Ratesetter peer-to-peer investment portfolio will be going into run-off once the Metro Bank takeover is completed by Q4 this year. This suggests that investors will get their cash back over time but not be able to reinvest it as Metro will fund all new loans going forwards.
Stuart Law said: “We expect that means Ratesetter peer-to-peer investors will not be getting new loans to invest in from later this year and that those investors will be seeking replacement investments to beat inflation and the diminishing returns of most other investments.
“Assetz Capital has delivered and continues to deliver strong rates of interest at similar levels to Ratesetter. Our three main accounts - whilst not delivering the withdrawal speeds that our investors have enjoyed in normal conditions - have paid rates of return each month from 3.75% pa (equivalent) throughout the crisis.
“We are one of the few retail-friendly peer-to-peer platforms with scale, and with a proven business model, with so many others now closing their doors to retail investors. We have continued to receive new investment throughout the crisis and have plans to scale up significantly in the months to come.
“Ratesetter helped establish the UK peer-to-peer market and deserve a lot of credit for what they achieved. While we are sad to see them exit, we remain fully committed to our retail investors and the principles that underpin peer-to-peer lending.”
- August 3, 2020