Folk2Folk raises rates as it seeks to attract Assetz Capital investors
The UK’s biggest P2P lender, Folk2Folk, has increased its interest rates as it looks to woo investors from Assetz Capital.
The business lending platform has raised its long held fixed rate of 6.5 per cent per annum to a range spanning from 7.5 per cent to 9.5 per cent.
“I’m proud to say we’re still open for business to retail investors,” said Roy Warren (pictured), Folk2Folk’s managing director.
Read more: Why are P2P platforms raising their rates?
“With property-backed deals offering fixed returns of up to around 9.5 per cent per annum. I believe we have a great offering, particularly with our Innovative Finance ISA, and we can fulfil a unique role within a wider investment portfolio.
“I openly invite investors who are looking for a new investment home, and who have £20,000 or more to invest, to contact me or our investor team to find out more about what we can offer – we’d be very happy to have you.”
Read more: P2P platforms reaffirm commitment to retail investors
Folk2Folk is also investing in a new investor portal as part of the company’s new loan management system. The new portal will enable investors to manage all aspects of their investing themselves online. Currently undergoing customer testing, the portal is anticipated to be launched this quarter, Warren said.
In December 2022, Assetz Capital announced that it was to run off its retail investment loan book over the next five years, as it moves to become an institution-only platform.
The peer-to-peer lending platform said that the decision was made following the rapid rise in the Bank of England base rate and corresponding increases in bank savings rates. The base rate currently stands at four per cent; at the start of 2022 it stood at 0.25 per cent.
Over the past few years Assetz has been building up a network of institutional investors. Since 2020, 80 per cent of all Assetz Capital’s lending has been provided via institutional capital.
While other lenders have Funding Circle and Zopa have also withdrawn from the retail market, a host of others have reaffirmed their commitment to retail investors.
