Consumers to ramp up investment in 2019 despite Brexit woes
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Investors remain upbeat despite economic uncertainty
Investors plan to increase the amount they invest this year despite challenging market conditions, according to recent research conducted by peer-to-peer investment platform Kuflink.
Peer-to-Peer Property Investment Jargon Buster
When it comes to peer-to-peer (P2P) investing, some industry terms can sound a little confusing, especially if you are just starting out.
We try to keep things as simple as possible here at Kuflink, since our goal is to make sure everyone can take advantage of our fantastic returns. With this in mind, we’ve pulled together a handy jargon buster to help ensure you’re up to speed and ready to invest when a P2P investment opportunity next catches your eye!
Peer-to-Peer Lending in the Property World
Let’s start with the basics… Peer to peer, sometimes written P2P, is a type of investment where you can lend money to fund property-backed loans of your choosing. You can choose the amount of a deal you wish to fund, based on the details provided against each property. It’s important to understand your capital is at risk and there is no security against your investment, such as the Financial Compensation Scheme, in the event a loan is not repaid.
Bridging Loans
Think of bridging loans as finance used to ‘bridge a gap’ – they are a quick way to secure funding, which usually acts as an interim measure whilst borrowers explore longer-term options. All loans available to invest in through the Kuflink platform are bridging loans.
Financial Conduct Authority (FCA)
The Financial Conduct Authority is the regulator for more than 56,000 financial services firms in the UK and focuses on protecting customers, enhancing market integrity and promoting competition in the interests of consumers. Kuflink is authorised by the Financial Conduct Authority, which means you can rest assured that our platform meets the highest security standards, and we are compliant with industry regulations.
Loan-to-Value
The loan-to-value, or LTV, is a percentage of the amount we have lent against the value of the security property. So, if a borrower had a property worth £100k and took out a £50k loan against it, the LTV would be 50%. The lower the LTV, the more popular an investment opportunity tends to be, as the risk of not being able to recover the full loan amount is lessened (although it’s important to remember nothing is guaranteed).
Loan to Gross Development Value
LTGDV works in the same way as a standard LTV figure, except it is measured against the expected value of a development once it is complete. All estimated development values are provided by independent surveyors.
Anti-Money Laundering Check
As part of our FCA regulation, Kuflink must confirm the identity of each investor by requesting their driving license or passport details – our AML check is fully automated and can be completed online in just a couple of minutes. It’s not a credit check and won’t appear on your credit history.
First / Second Legal Charge
Having a legal charge over a property simply means that, in certain circumstances, you have a right to take possession of, or sell, the property. It might be helpful to think about this in terms of a mortgage – the borrower is the legal owner of the property, but the mortgage provider can take possession of the property if the borrower fails to keep up the agreed payments.
A first legal charge means that you are first in line to take possession of the property, and a second legal charge means you are second in line (i.e. some finance is already outstanding against the property).
Default
If a borrower falls behind on their payments, we call this ‘defaulting’. Most platforms give a grace period before they officially class a loan as being in default, to give the borrower some time to pay. A loan being in default obviously isn’t great news for investors, but platforms and borrowers can often work out a solution in good time – don’t assume all is lost!
We take a number of tried and tested steps to minimise the risk of a borrower defaulting on their loan. We assess each borrower and only ever lend to those who we believe will comfortably meet their repayments, which has helped us to achieve our impressive £0 losses to date!
Put your new knowledge to great use, sign up to Kuflink’s online platform today. View our live opportunities and invest now to start earning up to 7.2% interest pa*.
*Capital is at risk.
Kuflink strengthens underwriting team
Peer to Peer Property Lender Kuflink Adds Underwriter Following “Huge Spike”
Kuflink, a peer to peer property lender for short term finance, has expanded its lending team following increasing platform activity.
Digging deep
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Happy New Year! 5 ways to help you achieve your saving goals in 2019
It’s New Year’s Day, and many of us are already masterminding our plan to ensure 2019 is THE year!
The current marketplace makes it not only difficult to put money aside but also a challenge to earn much on any savings. If you plan to invest more in 2019 like 42% of people that responded to our recent survey, the best way to make that happen is to set an exact amount, stick to it and know your options!
Here are 5 handy tips from the Kuflink team to help 2019 be your most prosperous year yet:
Create a savings plan
The first thing you should do is make sure you know exactly what you’re working with. Calculate all income, including any partners that you might pool money with. Then, work out all your outgoings, separating the essential (mortgage, credit card payments, food etc.) from the luxury (yes, that rarely-used gym membership counts!). This will make it much easier for you to plan where you could save, and how much.
Know your options
You don’t need to be an investment expert to maximise your savings but you should be prepared to spend time researching options online. Factor in the type of access to funds you’ll need, the length of time you want to put money away for and understand risk vs reward when it comes to interest rates. Whether you invest through your bank’s everyday savings account, an Innovative Finance ISA, bonds & shares or any other means, check the terms before committing.
Set Realistic Goals
Have ambitious goals but avoid setting the bar too high, for both how much you can save and the amount of interest you’ll make. Over-committing may cause frustration and steer you off track with your savings plan and overall goals. It’s important you set a little spare money aside each month to enjoy yourself and account for any unexpected costs that might pop up. Consider diversifying your savings if you’re looking at higher interest rate options.
Be Determined
There are months where sticking to your budget will be hard, maybe even impossible, but that’s not an excuse to throw it all out the window. Remember why you’re doing this and make sure any ‘bad’ months are followed by a great one! It’s better to reach your goals a month or two later than not at all.
Be Happy!
It’s okay if your goals or circumstances change throughout the year and your budget needs reviewing. Remember, a budget is exactly that; it isn’t a life plan and it shouldn’t be making you miserable. There are lots of pocket-friendly things to do with friends and family that will keep a smile on your face whilst you focus on saving.
