RateSetter P2P lending (plus £100 bonus)

I’ve found the quickest way to get money out is to set your reinvestment rate to 8% - then as repayments are made the money will sit on the market, giving you the chance to withdraw it.

I’m waiting on a withdrawal request too, but have got more out (much quicker) this way.

There is expectation that one is stuck with contracts one was matched with until remaining term.

However, on my account I see missmatch of declared contract terms and what the product says. I.e. I have 5 years+ contracts on access product, which doesn’t match the description of it.

If there were new investors and new borrowers there would be a better turn rate.

I too have set my reinvestment rate to 8% and login every month to withdraw repayments without any new reinvesting of any proceedings.

Thanks for the tip guys, it makes perfect sense although it’s not exactly intuitive. I’ll try it.

Just in case anyone else is wanting to take their money out - it’s taking an extremely long time. Much longer than I anticipated it would even with what’s going on.

RateSetter only have 85,000 investors and 20,000 of them have withdrawals pending.

7 months later and they’re still working on requests made on 14th March.

I was 13,000 something, but now I am 12,700 something.

I came to terms that I am stuck with my loans and have to wait for them to be repaid over the next 5 years.

Not reinvesting a penny, as that buys somebody out without any substantial new lending happening.

I was planning to take the money out because I realised the rate just isn’t worth it anymore - the upside I suppose is whilst I’m waiting it’s still earning interest.

I wonder if they’ll still pay out the £100 bonus I’m supposed to get after the year is up.

It’s been two weeks now and it’s gone from 22,992 --> 22,528 requests ahead of me.

It’s moving incredibly slowly.

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Interesting updates. Looks unlikely you’ll get that back though, other than just through standard returns on the loans.

Seven. Months.

It’s still accruing interest in the meantime and I left the 1000 I had in there originally as the terms of the free 100 was to leave 1000 in there for a full year.

With the 50% reduction, plus I consider it to be high risk now with all of the investors pulling out and the likelihood of borrowers defaulting.

@HoldenCarver the MSE email, reminded me to check up on the progress. Almost wish it didn’t remind me because the progress is so slow it’s a bit disappointing. I read in the article though that people had a few thousand ahead of them - mine seems to be on the extreme end of the scale indeed.

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I think it was two years ago I looked at P2P lending, and even back then I considered it high risk myself. Even in the best of circumstances it seemed far too easy to have any potential returns destroyed by a minimum of defaults.

A year after than, I caught a Martin Lewis money programme where he said much the same thing; his view was that P2P lending should only be looked at as an option if you’d maxed out your ISAs and other possible investments and had money left over - and even then he didn’t recommend it at all.

(I don’t mention this to make you feel bad about what has happened to you, but to warn others who may be considering P2P lending of the very real risks involved.)

I hope at the end of it you get your money back out and come through the experience (relatively) unscathed!

I actually thought it’s ‘risky’ but worth the risk based on how they said they spread out loans but I realised later on that they’d given 9000 of my money to a single borrower. It’s not good at all as if they default I’m screwed and their provision fund isn’t guaranteed to pay out anyway.

I made a withdrawal request on the 16th (when it supposedly peaked). The queue hardly seemed to move for the first few months, but in the last couple of weeks it seems to have picked up. Now at position 850 (down from about 1,100 a couple of weeks ago). Feeling a little more optimistic, but was definitely feeling a bit foolish for the level of risk I took with p2p.

Agreed. It’s a high risk investment - the biggest risk by far being liquidity risk, which is what is being realised now. I do think it was missold, because although they talked through the risk on returns, I don’t think they made it clear enough how likely it was the investment would become illiquid in a downturn (it was really inevitable, in a downturn loans are worth less and the ‘marketplace’ only lets you sell them at a fixed price).

One solution would be for them to allow sales at lower prices than the loan values - so you take a 5% loss maybe in return for a quick sale.

Something happened. The queue must have jumped by like 8,000+ people.

I got my sellout done on boxing day. No emails or anything, simply money in the holding account ready to be withdrawn to the bank account.


I had that happen to me - I asked for an explanation and it’s because of early repayments that it happens.

I forgot to post on here about it, happened about a month ago.

Only downside is that despite I signed up for the 100 bonus, they said I no longer qualify. I initially deposited 1000, then deposited an extra 10,000, then withdrew the 10,000, leaving the 1000 for the bonus.

They said that because one of the borrowers repaid early, I no longer qualify for the bonus despite me investing 1000 and leaving it in there.

It was early release, with a fee. Rather than early repayment.

So that’s end of RateSetter.

Metro Bank are acquiring all of their active loan portfolio, funds are being returned to investors and it will all complete account closures by April 2021. I’m assuming the RateSetter brand will live on but loans are provided by Metro Bank and have been for some time it seems.

Yeah, I got that email as well. Wondering what to do with the ISA money now as Monzo don’t offer a transfer in so that I can keep the tax free aspect.