Loanpad raises rates by another 0.1 per cent
Loanpad has raised investor rates by another 0.1 per cent, following a year of interest rate hikes at the property lending platform.
Late last month, the peer-to-peer lender raised the rates offered on its Classic and ISA Classic accounts from 5.1 per cent to 5.2 per cent. The Premium and ISA Premium accounts will see their target rates increased to 6.2 per cent, from 6.1 per cent previously.
The platform has been incrementally increasing its investor returns for more than a year now.
In August 2022, Loanpad’s Classic accounts were targeting investor returns of three per cent, while the Premium accounts were targeting 4.2 per cent returns.
Loanpad’s chief executive Louis Schwartz hasn’t ruled out further rate rises, depending on how the Bank of England rate rises progress.
“Moving into September we’ll continue to monitor things closely and we’ll see if we want to raise the rates again,” Schwartz told Peer2Peer Finance News.
Read more: Loanpad targets £100m of new lending in 2023
“There’s been quite a drop in the last few days in gilt yields so that could be indicative of a peak in rates so we’ll have to see. We’re monitoring it closely.
“We have managed to increase our rates quite substantially over the last year to investors and borrowers. Most of our loans are now on variable rates so any base rate changes should not have much of an impact to us.”
Schwartz added that Loanpad has been growing its funds under management over the past year despite the difficult economic environment, and it is set to onboard new lending partners in the coming weeks.
Read more: How platforms have adapted to the variable economy