To reduce the number of bids that are automatically rejected during auctions on our Loan Market, we’ve lowered the maximum interest rate for each of our five Credit Bands.
We made this decision after carefully considering the best interests of our investors and borrowers. We listened to feedback from investors who said they were being outbid on loans too often, and borrowers who said the rates they were offered at the end of auctions were no longer competitive.
The changes are designed to increase the number of loan offers accepted by businesses, which then makes more loans available to investors, improving the diversification in their portfolios. The changes also reduce the number of investors who miss out during auctions.
There has been no change to the minimum rate for each Credit Band. The following lending rates now apply:
|Credit Band||Interest rate|
This new structure means that interest rates will be more closely aligned with each Credit Band, improving clarity for borrowers and investors.
What this means for Autobid investors
Because we’ve reduced the maximum interest rates, Self Select investors who use our Autobid function will have to log in to their accounts to adjust their settings. To do this, click on the Manage account button on your MY ACCOUNTS page and then select Configure Autobid.
Autobid allows you to automatically bid on loans using pre-set preferences such as industry sector, region and interest rate offered. You can also automate the interest rates you offer to borrowers across our five Credit Bands. Once you’ve selected your new Autobid settings, press the SAVE CHANGES button to start automatically bidding on our Loan Market.
For those who don’t already invest in our Growth Account or Income Account, this may be a good opportunity to consider these automatic investing options, both of which can be held within our Innovative Finance ISA.
If you have any questions about these changes, please call us on 0345 564 1600 or email firstname.lastname@example.org