Changes to the Investor Terms

We’re making some changes to the Investor Terms to reflect the launch of our three new investment products, Access, Plus and Max.

You can learn more about these new products here. The changes are summarised in the below table. Please take the time to read and understand what’s going to change and what it means for you.

A copy of the updated Investor Terms and Key Investor Information documents are here, along with the terms which will continue to apply to investments in the 1 Year and 5 Year markets. The new terms will take effect on 3 October 2019.

You can find further information about our products and services on our website .

What do you need to do?

To accept these changes, you don’t need to do anything – they will automatically apply from 3 October. If you don’t want to accept these changes, you have the right to end your agreement and close your RateSetter account(s) without charge (although the fee to exit your matched loans will still apply). If you want to close your account(s), or if you have any questions about the changes, please contact us at before 3 October 2019.

What are we changing? How and why are we changing it?
Introducing new investment products We’re introducing three new investment products, founded on a single market. The new products are called Access, Plus and Max.

Currently each of RateSetter’s three investment products is based on its own market. Founding the new investment products on one market increases liquidity.

The Rolling market will become the Access product. The 1 and 5 Year markets will not change and they will remain accessible to customers with active investments in those products on 3 October 2019.
We’re introducing the Going Rate The new investment products will have a new Market Rate which will be provided by RateSetter – this is called the Going Rate.

The way the Market Rate in the 1 and 5 Year markets is set will be unchanged.
Your Rate You can continue to set Your Rate in the new products. Your Rate will be capped at 5% above or below the Going Rate. For example, if the Going Rate is 3.5%, you will be able to set Your Rate up to 8.5%.

You can continue to set Your Rate for the 1 and 5 Year markets as now.
Reinvestment options Repayments will automatically reinvest into the same product that you have selected, until you choose to withdraw your money. To reinvest in a different product, you will first need to release your investment to your holding account.

This ensures that your investment is continuously earning, as long as it is matched with a borrower. It will also provide consistency of liquidity for all investors because it means that access to your money will be provided by the entire loan portfolio rather than the market or the individual loan contracts in which you had invested.
The fee to withdraw your money The Early Access Fee is changing to the Release Fee. If you withdraw your funds from the new products, you will pay a Release Fee on the capital being released.

The Release Fee will be linked to the Going Rate and will be: zero for Access, 30 days’ interest charged at the Going Rate for Plus and 90 days’ interest charged at the Going Rate for Max.
How we can make changes If we make any changes to the Going Rate, we’ll tell you at least 14 days in advance.