RateSetter to simplify early withdrawal fees

RateSetter has announced that it will be simplifying its early withdrawal fees from 2nd November.

The peer-to-peer platform will be changing the current two fees for early withdrawal to a single and clear transfer fee for each market.

The transfer fee will be fixed for each market and will be a percentage of the capital being withdrawn (the fee will apply only to capital requested to be withdrawn, not interest).

RateSetter said that it would continue to calculate and display fees before a lender confirms they would like to proceed with their transfer request.

Meanwhile, the minimum amount that can be transferred out will remain at £10.

The platform will also be removing the ‘drawdown’ function after it said that less than 2% of lenders were using the tool, which moves a designated amount of money back into a lender’s holding account as loan repayments are received, leaving the remainder to be reinvested.

RateSetter will retain the auto money out function, which allows funds to be transferred from a lender’s holding account to their bank account on a regular basis.

The platform will also be amending the lender terms to reflect these changes and is giving lenders one month’s notice that the new terms will come into effect on 2nd November.

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