RateSetter, a leading UK-based peer-to-peer lender, announced on Tuesday that Metro Bank buys its loan portfolio online. RateSetter reported that Metro Bank was funding brand new consumer loans as a result of the RateSetter acquisition, which took place in September 2020.
“Today’s announcement follows the subsequent sale of RateSetter’s residential real estate development portfolio, a line of loan that is not an area of interest to Metro Bank, and was made possible by the recent sale. by Metro Bank of a £ 3 billion residential mortgage portfolio, which has freed up capital for the purchase. The performance of the consumer loan portfolio allowed the purchase to reach full value, despite continued economic uncertainty. “
RateSetter further revealed that the wallet purchase means that all RateSetter investors will receive their money in full and the investment portion of RateSetter will be closed. The lender will provide two months notice of account closure so it will happen on April 2. This process should take five days.
“Of course, no investment release fee will apply to money returned to the investor’s holding accounts as a result of the purchase. The money invested will continue to earn interest until then and refunds will continue to be processed according to the investor’s account settings until then as well. “
RateSetter then noted:
“We are proud to have generated an average annual return of 4.4%, while our pioneering credit management and provisioning fund have ensured that an investor never misses a dime of capital – a unique history that has been maintained throughout the current period of economic uncertainty and through to the purchase we are announcing today.
RateSetter added that in the future, it will focus on being a leading consumer lender in the market, in line with Metro Bank’s strategy to expand into consumer credit.