On 6th June, the monthly roll of matched loans stopped, which meant that from this date, investments in the rolling market remained matched to borrowers for the duration of the loan contract at the same consistent rate of interest until the loan is fully repaid.

The P2P platform first announced that it would be making changes to its rolling market in May this year.

The market has become RateSetter’s most popular and is used by two-thirds of its investors.

Another change is that as monthly repayments from borrowers are received by investors, repayments are automatically reinvested.

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RateSetter said this was to ensure that funds were immediately put back to work so earnings can be compounded. 

Reinvestments are set at the market rate, which means that they will be matched as quickly as possible. 

Investors can choose to stop the interest element of borrower repayments from being automatically reinvested. 

For people investing new money into RateSetter’s rolling market, they can choose either the prevailing market rate or set their own rate. 

RateSetter said that its rolling market was its most flexible investment market and the changes would have no impact on how investors access capital they have invested. 

Access would continue to be free of fees and remain subject to RateSetter being able to transfer matched loans to another investor.

Matched loans are transferred to other investors in the chronological order that they were matched, starting with the most recently matched contract.

RateSetter has also introduced a fair usage policy to protect the integrity of the rolling market, which creates an investment pause of 14 days following the withdrawal of capital from the market.

The platform hopes the changes will make the rolling market more predictable and easier to understand.