Unbolted hikes investor rates
Unbolted has increased its target interest rates to nine per cent, after reviewing the wider investment market.
The peer-to-peer pawnbroking platform previously offered investors annual rates of return of up to eight per cent.
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“Today’s rate rise was prompted by us reviewing the market across a range of different investment types lenders can choose from, not just P2P,” Chris Brown, head of lending and operations at Unbolted, told Peer2Peer Finance News via email.
“With others withdrawing from the retail investor P2P market we remain committed and are offering strong returns with a solid track record.”
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Unbolted is not changing its borrower rates in line with the investor rate hike. Brown said it has managed to do this by keeping a close eye on its own operating costs, highlighting investment into technology that runs the platform efficiently, and cost-effective office space.
The P2P pawnbroking pioneer has seen its loan book volume almost double since the lowest point during the pandemic, although Brown declined to reveal the actual size.
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“The good news is that the loan book is healthy and continues to grow, so in addition to the higher rate the effect of cash drag on our platform for investors is currently very low,” Brown added.