Frequently asked questions

Complaints Policy

At Ablrate we are committed to providing you with excellent customer service and want you to be completely satisfied with the service you receive. If you are or have been dissatisfied with any of the services we have provided for you, please let us know so we can understand your concerns, investigate and respond. Ablrate have in place an effective and transparent procedure for the reasonable and prompt handling of complaints. How to complain We aim to resolve your complaint quickly and efficiently. To help us to deal with your complaint, we will ask you for the following information: • Your personal details, including your contact details • A brief overview of your issue • What you would like us to do to resolve it You can choose how you want to complain to us, our staff are on hand to help by: Telephone: +44 (0) 1491 410 400 Email:...


What are the tax consequences if a loan is not repaid and it is held within the IFISA?

Losses within the IFISA cannot be offset against capital profits - this is due to the fact that it is already within a tax-wrapper.  
PLEASE REMEMBER, REGARDLESS OF THE TAX BENEFITS, CAPITAL IS AT RISK Whether investments are held within a IFISA or in a general account, they are not covered by the FSCS; the government backed deposit insurance scheme that protects bank deposits including Cash ISAs. The tax benefits available in an IFISA are subject to status and your capital is at risk. The tax benefits of an IFISA are also subject to change by the government.


Who are Juno Corporate and Fund Services?

Juno are a Gibraltar regulated company, who act as the administrator to the fund, helping with all fund communications e.g.  onboarding all investors, reporting monthly NAVs (net asset values).


What are your charges for the ablrate IFISA?

There are no fees associated with setting up your IFISA with Ablrate. We are charged 0.35%/12, each month, of the amount of funds that are on account by our service provider Goji and an annual fee of £4,000. We do not pass on any of these charges to yourself, and we have no plans to do so in the future. If you choose to move your IFISA to another provider then we charge £100 to do so.
PLEASE REMEMBER, REGARDLESS OF THE TAX BENEFITS, CAPITAL IS AT RISK Whether investments are held within a IFISA or in a general account, they are not covered by the FSCS; the government backed deposit insurance scheme that protects bank deposits including Cash ISAs. The tax benefits available in an IFISA are subject to status and your capital is at risk. The tax benefits of an IFISA are also subject to change by...


Can you explain the fees and how these are treated in a default?

It is important for us to be clear about the charges that are paid over the Ablrate platform and of the impact that those fees and charges may have on the amount recovered by investors from borrowers in default. When crafting our policy we have a regulatory obligation requiring us to pay due regard to the interests of our customers and treat them fairly. We also have to pay due regard to the information needs of our clients, and communicate information to them in a way which is clear, fair and not misleading These are the charges that can be made over the Ablrate platform to Lenders and Borrowers:
Lenders Fees
Account Fees - There are no fees associated with opening or maintaining an account with Ablrate. Loan Exchange Fees - There is a fee of 0.25% of the value of the trade for a seller and a buyer. At...


Why do I have to do an ‘Appropriateness Test’?

The Financial Conduct Authority brought in new rules in 2019 that required platforms, such as Ablrate, to classify their customers by experience levels. The Appropriateness Test is part of this process where we have a short, multiple choice, test that seeks to educate lenders on the basics such as how the process works, what some of the risks are and that loans are not covered by the Financial Compensation Scheme. The FCA feel that some aspects of P2P lending is risky and lenders should be fully aware of the risks. We feel this is a good policy as education in any financial scenario is key to understanding the market and getting the best results. If you look through our FAQs you should have sufficient knowledge to be able to pass the test but if you feel that you would like further explanation we are here to help, get in...


What is a paused loan and what does it mean for me as a lender?

A loan that has been paused is one where we feel that there is a measure of uncertainty and so the existence of a Loan Exchange may be unfair to some people. This may occur if a repayment is late or at risk. It may occur if we become aware of any change in the financial circumstances of a borrower or their client. It may occur if we feel that market activity is not normal in that loan and it may occur if the loan is a short term loan and we feel that it shouldn’t be traded (especially if we have been informed of early redemption of the loan). Pausing a loan is done at the complete discretion of Ablrate, however, on payment date the loan is automatically paused. This is because, in the case of an amortising loan, if a lender has a certain amount of loan on offer...


What is the difference between an amortising loan and an interest only loan?

An amortising loan is like a traditional repayment mortgage where the borrower pays a constant amount over the life of the loan. The loan repayments are composed of capital and interest, with an increasing amount of capital paid off every month. An interest only loan is the same as an interest only mortgage where the borrower pays interest payments over the life of the loan and repays all of the capital in one lump sum at the end of the term. The main difference for a lender is that an amortising loan reduces the risk for the lender every time a repayment is made, because you are having some of your capital investment repaid. If you are investing in an interest only loan, it is important to consider whether the borrower will be able to make the entire repayment in one go at maturity.


Lending Options via SIPP/ISA/SASS

Ablrate is able able to offer SIPP accounts through Morgan Lloyd. We are one of only 9 approved peer to peer lending platforms. Morgan Lloyd is also able to accommodate SASS schemes and we welcome those who would like to invest via this kind of pension schemes. Please follow the Morgan Lloyd link for more details, they will walk you through the process with you and get you set up as soon as possible.

Your SIPP or SSAS enjoys some really attractive tax benefits. As you would expect, HMRC regulates these types of pensions to ensure that the tax advantages aren’t abused.

When considering any type of loan (either directly or indirectly) it is therefore important that you are aware of two key restrictions that form part of the HMRC regulations:

Firstly it is not permissible for your SIPP or SSAS to invest in any loan where you are...


How do you handle my funds when it is on an account?

Your funds are held in a segregated client account the ‘Ablrate Client Account’. ‘Segregated’ means that your money does not form part of our assets in the unlikely event that we go out of business. We hold a ‘Client Money Acknowledgement Letter’ from NatWest Bank recognising that the Client Account funds are separate from our funds. The Client funds are held in one account, however, each Lending Members’ funds are identified on our Platform allowing us to individually identify and allocate funds to a Lending Member.


Interest payment is due today, why is it not showing in my account?

If a payment is not showing in your account it can be for three reasons: 1. The payment may have been paid after hours on the payment date. In this case the payment is made on the next working day. 2. If a payment has not been received from the borrower the payment will not appear in your account until such payment is received. If this is the case then we will update the Admin section of that loan with an explanation of the late payment and what we are doing about it. 3. If a payment date falls due over a weekend from the borrower, we may not receive the payment until the following Monday. You can track the status of all payments in the Repayment section of each loan (available from the ‘Details’ section)


Could the return on my investment be different to that advertised, over time?

The rate advertised on loans that you invest in will be the rate you receive if the loan goes the full term and is fully paid.  However, this return could be reduced if the borrower is unable to make payments and you may even make a loss if the borrower does not pay in full. There are no guarantees on Ablrate and your capital is at risk. The Ablrate Loan Exchange allows you to buy and sell loans if there are willing buyers and sellers (and this is not guaranteed), but if you sell your loans at a discount your return will be lowered by the amount of that discount.