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Does anyone know how the ‘Rolling’ aspect of Ratesetter works? I’ve been through their FACS and Help screens of their website without feeling much the wiser.

This is called peer to peer, but it has the feel of lending to Ratesetter, who then lend on, and Rolling is where most of the loans are, rather than 1/3/5 year deals.

(I use Ebay as a peer-to-peer auction site, where I am put in direct contact with the buyer/seller, and Ebay just facilitates the connection, that’s peer to peer!).
How can a connection be said to have been made between lender and borrower when they don’t even know each other’s names?

e.g. if I put in £5K, leave it in Rolling for, say, 15 months and then withdraw, what actually happens underneath? Presumably Ratesetter parcels out the money to borrowers for all sorts of different lengths of time and all sorts of interest rates depending on risk of the borrower. Then when I ask to withdraw, it finds new lenders to take over my commitment.

It’s just that to work smoothly this seems to need:
1. An expanding company so that more new lenders are available to take over from leavers
2. Falling interest rates, so that those taking over inherit an attractive rate
Or better still, people who just leave their money in ‘Rolling’ very long term without questioning.

At the moment all goes well as we have just these conditions, but when Ratesetter reaches maturity and shrinks, and when interest rates are rising??
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