I remember reading somewhere that Harmoney intends to adjust the RAR to take into account Payment Protect which increases your Outstanding Principal. If they do, it will bump the RAR by about 1% to 1.5%.

At the moment RAR is dropping with the new lower interest rates taking effect - you can see the drop in the Market Stats from early this month. The cynic in me sees HM as trying to present the platform RAR above 10 or 11% as there is a possibility that it could drop below 10% otherwise.

However, even if they do not add the increase principal, the present RAR already reflects the higher repayments to investors due to the increased o/s principal and the slight increase in interest received due to the higher o/s principal. And over time, the total effects of Payment protect will be captured by the present RAR anyway.