RateSetter Review

RateSetter Review (UK Lender) 

(4.5 / 5)

– Updated September 2018

Read my 100% unbiased RateSetter review here. Based on my own investing experience.  Highlighting the positives and negatives of investing with one of the UK’s largest Peer to Peer lenders

RateSetter is one of the largest and (what I consider to be) best and safest P2P platforms out there. They offer a hands-off investment experience with reasonable return for the risk. You simply set the rate you are willing to accept and wait until the market rate gets there. Or you accept the market rate and get a very quick investment. I really like RateSetter. One reason is because it’s possible to invest a significant amount of capital quite quickly. RateSetter’s  loan book is huge!

There are a few P2P companies that are trying to operate more like a bank, and RateSetter is one of them.  They are doing very well (always remember they are not a bank though, and as such your capital is at risk).

Obvious Investor Easy-Info Table

Overall Rating*: (4.5 / 5)
Who can invest:
Estimated Return:3.4% to 6.2%
Varies daily depending on account and market demand.
My Actual Return:5.4%
Risk Rating*:2/10 - Medium   
Early Exit:Yes.
No fee on Rolling Market Account.
0.3% on 1 year.
1.0% on 3 year.
1.5% on 5 year.
Min. Investment:£10
Auto Invest:Yes
Manual Invest:No.
However you can set your own rate as opposed to market rate.
Lending To:Borrowers
Loan Security:No.
Provision Fund:Yes
Time to Invest:Fast: huge loan book.
Time to Mange:None (auto-invest)
Lender Fees:Only on early exit.
Amount Lent:£2.7 billion+
Number of Investors:67,000+
Loan/Dflt Stats:Click Here for Stats
Regulated:Yes: FCA
Location:London, UK
Cashback**:Yes! £100 Click here to see current offers.
How to Sign Up**:Sign Up Here!

* My opinions on ratings and risk rating factors refer to my personal experiences with the lender. Plus factual data such as interest rates, loan types, security, platform history, default numbers etc.

**Please read our referral policy for more information on referrals & affiliate links.



RateSetter’s holding company, Retail Money Market Ltd, was founded in October 2009 in London. In the 9 or so years they have been in business, RateSetter has lent upward of £2.7 billion to almost 500,000 borrowers. Their active investors total over 67,000. They have originated almost 600,000 loans with an average loan term of 26 months.


In November 2014. The Australian branch of RateSetter, with its office located in Sydney, was the first peer-to-peer lending platform in the country open to retail customers.

By December 2017, RateSetter announced that over AU$200m had been lent via the platform.


RateSetter is based on the principle of an exchange. Price is determined by the supply of money from lenders, and demand for money from borrowers. With both sides of the market specifying the rate they will accept.

RateSetter was the first company to introduce the concept of a “Provision Fund” to reimburse lenders in the event of a late payment or default. This is a capital sum (over £29,000,000 as of Aug 2018), generated by borrowers’ payment of a fee based on their credit profile. As of August 2018, RateSetter claims that none of its individual investors have ever lost any money.

Borrowers can apply for a loan for between 6 and 60 months. RateSetter has strict lending criteria, accepting between 12 and 15 per cent of borrower applications.

Account Options

RateSetter has 3 different account options. The “Rolling Market” which is a lower rate option, however (under normal market conditions) offers almost instant access to your capital with no penalty for withdrawal. Their “1 Year Market” offers a reasonable “mid rate return” for loan terms of up to 1 year with a small 0.3% penalty for withdrawal . The “5 Year Market” portfolio offers the best interest rates for loans of up to 5 years duration but there is a larger penalty of 1.5% for withdrawing your money before the 5 years is up.

Ratesetter peer to peer lender


RateSetter’s website is extremely easy to use. Once you log in to your account, the initial screen gives you a breakdown of your investments and where money is sitting.

RateSetter Screenshot

If you choose the “invest” option from the left hand column, you’ll get a screen which gives you the available options of which account you would like to invest in, and the current rates.

RateSetter Screenshot

Choose which account your would like to invest in, then how much and at what rate and your done. It’s as simple as that! Of course you’ll need to add funds to your account first.

The last thing is to tell RateSetter if you would like to reinvest loan repayments, and if so at what rate, and you’re done. Kick back and watch your money grow!

RateSetter Screenshot

One of the things I really like about RateSetter is its  “Provision Fund”. RateSetter introduced this concept in to the market, and it continues to lead the way protecting its lenders funds.


RateSetter continues to be one of my favorite Peer to Peer lenders. I have a good chunk of my diversified portfolio with them. Reasonable rates (as of August 2018 I’ve seen the 5 year rates reaching about 6%) and a good Provision Fund  from one of the larger, safer P2P companies. I have no hesitation recommending RateSetter as part of a diversified portfolio.


Click here to open an account  New Customers receive £100 cashback when they join Ratesetter and invest £1000 or more for 1 year. When you open an account using this link it helps me to run this website and write new reviews. Please read our referral policy for more info.




  • Safety – RateSetter is thought to be one of the safest P2P lenders in the U.K. To date, no lender has lost any of their capital, and the provision fund always seems to cover a good percentage of possible losses.
  • Auto-Invest – means virtually no time managing investments. Just send your money over, decide what rate you would like (or accept the market rate). Then sit back and watch the interest come in.
  • Rolling Market – should you need to access your money quickly, the rolling market is a great way to achieve more than double what the best savings account will give you. However you still have almost instant access to your cash under normal market conditions.
  • Good Rates – from a company that has lent over £2.5 billion with zero lender capital loss. The ability to get almost 6% (as of 15/09) is not too bad at all.
  • Website – RateSetter’s website is very easy to use and understand. Some P2P websites leave a lot to be desired.
  • Fast Invest – depending on the rate you choose, investing in RateSetter can be very fast indeed (few minutes). Which means less cash drag (cash sat in your account not being lent out, so not making a return).
  • Large Investments – because RateSetter’s loan book is so big, it can easily gobble up large amounts of capital very quickly. Again reducing cash drag for larger investors.
  • £10 minimum investment – if your portfolio is still small, it’s still easy to invest with RateSetter.
  • Financial Conduct Authority (FCA) Regulated.
  • IFISA available for UK investors



  • Exit Fees in Longer Term Portfolios – this can be seen as a bit of a negative, but where else can you get almost 6% and still be able to get out in an emergency?
  • Unsecured Loans – many (but not all) of the RateSetter loans are unsecured loans given to individuals or businesses, so if things were to go bad, you don’t have any collateral. In theory the Provision Fund should take care of defaults, so this shouldn’t matter. In practice though, no one will no how this works until we go though another financial crisis.


           TrustPilot Review

RISK FACTOR – 2/10 – Low

I consider RateSetter to be on the lower end of the risk scale. You can also see by the TrustPilot reviews above that so do many other people. The only thing stopping it from a lower rating is that many of its loans are unsecured. In most market conditions this is irrelevant, but in a severe recession it could come in to play. Either way, I have no worries about investing a significant portion of my income portfolio with RateSetter.



It appears that only U.K. residents with a U.K. address and bank account can invest with RateSetter. Contact RateSetter for further information.



Click here to open an account  New Customers receive £100 cashback when they join Ratesetter and invest £1000 or more for 1 year. When you open an account using this link it helps me to run this website and write new reviews. Please read our referral policy for more info.




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RateSetter Peer to Peer Lender Review
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