Aggregator and P2P lender launch online car loans for brokers

RateSetter Car Loan, which was designed for distribution to prime customers through the broker channel, comes with a fixed interest rate of 4.95 per cent per annum or a comparison rate of 6.55 per cent per annum, with an entirely online application-to-settlement process.

Other features of the product include same-day settlements and fund transfers as well as no exit or break fees for those who want to repay their loan early.

The loan can be used to fund the purchase of a new car or to refinance an existing car loan, and physical inspections of vehicles are not required.

Head of Connective Asset Finance Brent Starrenburg described the launch of the product “necessary” to ensure its brokers have a variety of “viable” options to present to their customers as “some of the major consumer asset finance lenders [have pulled] out of the market in recent times”.

Mr Starrenburg further said that the aggregator has been seeing “strong growth” in the vehicle loans coming through its broker network and that the exclusive RateSetter product has been designed to make it “as easy as possible for brokers to diversify” into vehicle finance.

Connective in April announced entering into a strategic partnership with asset finance aggregator Money Resources Group (MRG), which supports 20 brokerages, that will see MRG leverage Connective’s technology and compliance expertise to support its own growth.

The aggregator has also bolstered its asset finance team and added new lenders to its panel in the past months including OnDeck, GetCapital and GoGetta.

Meanwhile, RateSetter recently announced the appointment of ING’s former head of third-party distribution and direct mortgages, Mark Woolnough, to “accelerate” its own broker strategy.

[Related: New lender joins Connective panel]