Peer to peer lending websites: RateSetter review

   Ratesetter brand image 

Customer score

1st out of 3 peer-to-peer lending websites


Ratesetter peer-to-peer lender overview

RateSetter, like its main competitor Zopa, aims to make peer-to-peer investing as simple as possible. The site automatically allocates your money to borrowers and aims to cover any late repayments automatically and seamlessly. The rates on offer aren't as high as a site like Funding Circle where you take a more active role in choosing how to lend your money. But if you're looking for an experience which is almost as simple as putting money in a savings account, offering better returns for a little more risk, RateSetter could be for you.

Ratesetter peer-to-peer lending satisfaction
Overall experience4 stars out of 5 
Savings rates4 stars out of 5 
Explanation of the risks4 stars out of 5 
Default rates5 stars out of 5 
Variety of products available3 stars out of 5 
Ease of use of the website4 stars out of 5 
Customer service4 stars out of 5 
Clarity of information on the website4 stars out of 5 
Online communityN/A 

Table notes:

  • Star ratings out of five show levels of satisfaction for each category.

Ratesetter peer-to-peer lender details

Lending terms

  • Minimum lend: £10
  • Lending term: One month, one year, three years, or five years
  • Can I withdraw funds early? Yes, but your rate will be reduced to the nearest lending term - e.g. funds in a one-year bond taken out after six months would revert to monthly instant access rates
  • Rates of return on offer for lenders: from 2.9% on monthly instant access account to 6.6% on a five-year bond (after fees, but before tax. Rates checked 18 February 2016)

Borrowing terms

  • Minimum amount you can borrow: £1,000
  • Maximum amount you can borrow: £25,000, depending on personal circumstances
  • Borrowing term: Six months to five years, depending on personal circumstances
  • Can loans be paid off early? Yes, and without any penalty fees

What do Ratesetter's customers say about them?

We surveyed 5,000 Which? members in May 2015. These were some of the comments from those who'd invested in Ratesetter:

"I am getting good returns on my investments and am able to control the level of return."
"Good rates, a clear and easy-to-use site, low default rates and a provision fund."
"Simple to invest. Good returns so far."

Alternatives to peer-to-peer websites

If you're looking for a loan, it's worth checking out Which? Best Rate personal loans too.

In almost all cases you'll want to build up cash savings (in Isas or savings accounts) before considering putting your money into a more risky investment such as peer-to-peer lending.

If you are looking for higher returns you might want to consider other investments.

More on this...

Last updated:

June 2016

Updated by:

Michael Trudeau


Which? Limited (registered in England and Wales number 00677665) is an Introducer Appointed Representative of Which? Financial Services Limited (registered in England and Wales number 07239342). Which? Financial Services Limited is authorised and regulated by the Financial Conduct Authority (FRN 527029). Which? Mortgage Advisers and Which? Money Compare are trading names of Which? Financial Services Limited. Registered office: 2 Marylebone Road, London NW1 4DF.