Published on March 25th, 2021 | by Jenny0
RateSetter prepares to close the investing side of the platform
Earlier in 2021, RateSetter announced that it was planning on closing the investing side of the platform following the purchase of the company by Metro Bank in late 2020. The decision comes as the Metro Bank has decided to purchase the legacy loan book of RateSetter and it sees the closure of the P2P lending side of the platform.
The move means that money invested in the market by investors will be returned to their holding accounts allowing for easy withdrawal. Those with IFISA accounts will be able to transfer the money to another ISA account if they wish to retain the tax-free wrapper.
Investors will have to move fast to maintain their ISA status
With the money being returned on the 2nd of April, investors will be left with only a few days if they want to move their money to a new ISA provider before the end of the tax year (when the ISA allowance of £20,000 renews).
The move comes amidst wider shakeups in the peer to peer lending industry with provider Moneything entering administration early in 2021.
What does this mean for future investors?
The move by Ratesetter may reflect a reduction of the peer to peer lending industry size in 2020 following the onset of the pandemic. Investors may be looking to take advantage of undervalued companies and funds on the stock market as a way of making their money work harder.
That being said peer to peer lending may still be a viable way of diversifying your portfolio but the risks of having money out on loan are far different from owning equity through the form of stocks.
Get in touch with a member of our team if you have any further questions.