Peer-to-peer property lender easyMoney has increased its target rates for the second time since the Bank of England raised the base rate to five per cent last month.
For investments of £100 or more, the new target rate is 5.28 per cent. For investments of £20,000 or more, the new rate is 6.27 per cent, and for £100,000 or more, it is now 7.26 per cent.
This is the platform’s fourth rate increase this year, having already raised rates by 0.5 per cent back in January, by 0.25 per cent in May, and 0.25 per cent in June.
“A 13th consecutive rate hike by the Bank of England has pushed the base rate to a 15-year high that is stretching borrowers to breaking point,” said easyMoney. “But for those with money to invest, the current landscape is far more favourable.
“While some institutions have been dragging their feet when it comes to passing on the benefit of escalating interest rates, easyMoney has been leading from the front, with this latest increase the fourth such increase implemented by the company just this year alone.”
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The new target rates come into effect today and all existing investments have been automatically moved to the new rates.
“It remains a difficult time for many and while inflation has started to ease, the cost of living remains substantial,” said Jason Ferrando, chief executive of easyMoney.
“Increasing interest rates will have done little to ease this financial burden and we expect that there is more to come in this respect which will be unwelcome news for the nation’s borrowers.
“We believe it’s only fair that those in a position to benefit from escalating interest rates are able to do so.”