The returns on Ablrate are set by the borrower and reviewed and approved by Ablrate, however, it is you, the Lending Member, that makes the final decision on whether that rate is appropriate for the risk you are taking.
Returns vary from 10% and our highest rate has been 16%. The rate depends on where the loan is in the structure, for example, a senior loan that has a first charge at a low LTV (‘Loan to Value’) would earn 6% – 10%, a loan that was a secondary charge would be higher. In some circumstances, especially with short term ‘bridging loans’ there is a first charge but the rates are 12%+.
It is important to know that these returns are subject to tax, unless you have invested via a tax-efficient product such as an Innovative Finance ISA for example. The returns may also be affected if there is a default and the full amount of funds lent is not able to be recovered by the sale of the asset.