Peer-to-Peer Jargon Buster
When it comes to peer-to-peer investing, some industry terms can sound a little confusing, although P2P is actually one of the most accessible types of investment – with Kuflink, you can get started from just £100! *
We’ve put together this handy jargon buster to help you ensure you’re up to speed and ready to invest when a P2P opportunity next catches your eye:
Peer-to-Peer: Often abbreviated as P2P, peer-to-peer lending is the process of one business or individual lending money to another, usually facilitated through an online platform. It’s an alternative way of matching borrowers with lenders that, in comparison with most high street banks, provides quicker access to finance for borrowers and higher interest rates for lenders.
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.
FCA: The Financial Conduct Authority is the regulator for more than 56,000 financial services businesses in the UK. 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: Loan-to-value (or LTV) expresses the total loan amount as a percentage of the loan security. For example, if you borrowed £50,000 and gave a £100,000 asset as security for the loan, the LTV would be 50%.
Loan to Gross Development Value: Gross development value refers to the expected value of a development once it is complete, if it were to be sold on the open market. The LTGDV expresses the value of the loan as a percentage of the gross development value.
Anti-Money-Laundering Check: An anti-money-laundering, or AML, check is how we verify the identity of our investors. As part of our FCA regulation, Kuflink must confirm the identity of each investor by requesting their driving license or passport details – this is not a credit check and will not leave a footprint on your credit file.
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 creditor retains sufficient rights over the property to enable them to enforce their legal charge, should the borrower not keep up repayments. The creditor in this instance can be first in line (first legal charge) or second in line (second legal charge).
Default Risk: We take a number of steps to minimise the risk of a borrower defaulting on their loan. We perform rigorous assessments on borrowers to ensure that we only lend to those who we believe will comfortably meet their repayments. As loans are secured against property, should a borrower default we will take appropriate steps to recover losses. This does not, however, mean your investment is totally safe – your capital is at risk.
Kuflink’s 20% Guarantee: Kuflink are proud to be the only platform in the UK to guarantee 20% of each loan, in the unlikely event of a loss occurring. This means that if the borrower defaults, we will minimise risk to investors by covering 20% of the deal amount on a first-loss basis.
Put your new knowledge to great use, sign up to Kuflink’s online platform today! View our live opportunities and invest in one or many of them to start earning up to 7.2% interest pa gross*.
*Capital is at risk. Rate correct as of April 2018. You should seek independent financial advice.
Open Banking 2018: Stay Ahead Of The Curve
The Open Banking initiative was launched by The Competition and Markets Authority (CMA) in January 2018 on behalf of the UK Government, to stimulate competition amongst financial providers. Research found that ‘larger banks do not have to compete hard enough for customers’ business, and smaller and newer banks find it difficult to grow and access the market’, therefore Open Banking was designed to make it easier for consumers to compare and switch providers.
Open Banking is a huge step forwards for UK FinTech companies, who are often able to deliver higher interest rates than banks but are still unfamiliar to many of us. As greater numbers of FinTech companies gain FCA authorisation, it will be much easier for customers to compare what’s on offer and ensure they get the best deal.
What is Open Banking?
In simple terms, Open Banking is a data-sharing initiative that gives FCA-regulated providers the right to share your financial data with other regulated firms, but only when you have given your permission for them to do so. At present, only the nine biggest high street banks are participating, but this number will grow exponentially as more firms strive to meet the authorisation criteria.
What does Open Banking mean for consumers?
In practice, Open Banking makes it easier for consumers to compare deals and switch accounts – think of apps that could scan your bank account for regular purchases and suggest retailers that offer the same product cheaper, paperless mortgage applications, and the potential to secure credit that is tailored to your financial circumstances.
How safe is Open Banking?
Open Banking applies only to FCA regulated firms, meaning that every firm that has access to your data is bound by strict rules and security procedures.
You’ll still need to give your permission for financial providers to share your information and retain the right to say no to firms you aren’t comfortable with.
Furthermore, you don’t have to give full permission for providers to access all of your data – for example, you may consent to give a budgeting app access to your current account, and they would not be able to view any other accounts you hold.
What does it mean for banks?
Many customers have already been tempted away from traditional bank savings accounts by products such as Innovative Finance ISAs, which typically offer much more competitive interest rates.
Although consumers have always had the option to diversify their money across any number of providers, for many of us, the idea of monitoring multiple accounts sounds like an unnecessary hassle. Open Banking will simplify the process of comparing and switching providers, forcing banks to be more transparent and deliver better deals for consumers or face losing business to up-and-coming FinTech companies.
If you’re keen to stay ahead of the curve, then great news – you don’t have to wait for Open Banking to come into effect to benefit from more competitive interest rates!
You could earn up to 7.2% interest pa gross* by signing up to Kuflink’s FCA-regulated FinTech platform today, where you can invest in peer-to-peer loans secured against UK property.
*Capital is at risk. Rate correct as of April 2018. You should seek independent financial advice.
Interview with Narinder Khattoare, CEO of Kuflink
Kuflink is a peer-to-peer property investment platform that brings borrowers and investors together.
Property vs Pensions: Which is Best?
Ever worry that your pension isn’t large enough to sustain the kind of retirement you’re looking forward to?
On average, British pensioners receive just 29% of their in-work earnings.
This small sum would leave many of us struggling to pay the bills, let alone being able to afford those long-awaited family holidays or treats. Latest figures from the Organisation for Economic Co-operation and Development show that 18.5% of those aged 76+ in Britain are living in poverty.
Those dependant on state funds are the worst affected and, with pensions failing to provide a sufficient income, many retirees rely on property as an alternative source of income.
Buy-to-let property is a big commitment, both in terms of the capital you need to get started and the long-term nature of the investment. Many of us look forward to relaxing during retirement, and there really is no guarantee of ‘a quiet life’ when you invest in rental properties. If you were planning to invest all your savings in property, it’s essential to consider how your finances would hold up should the property become vacant or need substantial repairs.
If house prices fall or stagnate, you could be left responsible for a property portfolio that contributes only a minimal amount towards your retirement income. Even if the housing market continues to boom, your personal circumstances may change and, as property is an illiquid asset, it can be tricky to turn your investments into cash at short notice.
So, if you’re in search of a way to supplement your pension and bring your retirement dreams a little closer to reality, you’ll be pleased to know that buy-to-let isn’t the only way to invest in bricks and mortar…
Kuflink’s innovative peer-to-peer platform offers investors many of the same advantages as buy-to-let, including monthly interest payments and property-backed opportunities, without the hassle of maintenance or deposit costs!
Register today to view Kuflink’s portfolio of exclusive short-term property loans offering up to 7.2% interest pa gross*, and invest from just £100.
*Capital is at risk. Rate correct as of April 2018. You should seek independent financial advice.
Kuflink Wins 3 Top Industry Awards!
To top off a fantastic start to the year for Kuflink, we’re proud to announce that we have won 3 industry awards this month! On Wednesday 21st March, we attended the Business Moneyfacts Awards at the Royal Lancaster Hotel in Hyde Park, where Strictly Come Dancing’s Claudia Winkleman presented Kuflink with our first award of 2018. The whole team was still in great spirits from this fantastic event when we headed to the Property Wire Awards at Eight Club in Moorgate on Friday, where property guru Martin Roberts handed Kuflink a further two awards!
Our team works extremely hard to secure the best deals for our borrowers and lenders, so we’re thrilled to have won:
Best Alternative Business Funding Provider – Business Moneyfacts Awards
Kuflink has the pleasure of providing finance to a huge range of exciting businesses, from restaurants to hotels. Our sales team consistently deliver excellent results by tailoring each loan to meet the individual needs of the borrower, which is how we challenged top competitors including Funding Circle and Ratesetter to win the Best Alternative Business Funding Provider!
Crowdfunding Platform of the Year – Property Wire Awards
More than £15 million has been invested through our platform since we launched in 2016, with £0 investor losses! Kuflink’s bespoke, easy-to-use online investment platform has always been a hit with our investor community and it’s fantastic to have been recognised as the best in the industry.
Best Specialist Finance Provider 2018 – Property Wire Awards
Borrowers can often be overwhelmed by the huge range of short-term finance options to choose from, which is why Kuflink Bridging keeps it simple; cost-effective, hassle-free bridging loans starting from just £50,000. Our speed and flexibility are what makes us Best Specialist Finance Provider for the second year in a row!
Find out what makes us the best in the business by signing up to Kuflink’s investment platform today – you’re just a few minutes away from joining thousands of savvy investors who earn up to 7.2% interest pa gross! *
*Capital is at risk. Rate correct as of March 2018. You should seek independent financial advice.
Could 2018 Spell The End For Your Local Bank?
In 2017 alone, more than 800 UK banks closed their doors to customers for the final time. Although these closures were often met with protests from those reliant on their local branch, the popularity of online banking has been a huge factor in the disappearance of banks from our high streets. 63% of us report that we use online banking regularly and, with few customers still using their local branch for everyday services such as transferring money or paying bills, we could soon see a fully digital banking system.
Only 62% feel that local branches are important
Research conducted by PWC shows that a clear majority of Brits still see the need for local services but, perhaps surprisingly, almost 4 in 10 do not feel that they are important. This report also found that a huge 46% of customers now interact with their bank solely through digital means!
RBS plan 259 branch closures by June 2018
After a reported 40% drop in the number of customers using their branches since 2014, RBS recently announced plans to close around a quarter of their network, which includes RBS, Natwest and Ulster Bank branches. This is typical of the challenge that most banks now face – to find a cost-effective way to balance the demand for physical branches with the fact that almost half of us elect to use digital channels wherever possible.
Why do people prefer online banking?
For many of us, local banks simply do not fit around a busy, modern lifestyle; they are closed by the time we return from work in the evening and closed for half of the weekend, leaving us little time to arrange a visit. In contrast, online banking is accessible 24/7 from anywhere we happen to find ourselves, so long as there is an internet connection.
As the UK’s FinTech landscape expands, it’s easier than ever to explore different approaches to your finances; all the information you need to get more from your money is right at your fingertips.
Join thousands of savvy investors who are realising the earning potential of their money and sign up to Kuflink’s easy-to-use online platform today! Kuflink is an innovative peer-to-peer platform where you can invest in UK property loans and earn up to 7.2% interest pa gross.*
*Capital is at risk. Rate correct as of March 2018. You should seek independent financial advice.
Live from LBC: Kuflink Joins Nick Ferrari
To celebrate a fantastic 10 months since we launched our Innovative Finance ISA, Kuflink CEO Narinder Khattoare met with LBC’s Nick Ferrari this week to discuss interest rates, diversification and getting more from your ISA in 2018.
“Over the last decade, savers are not getting much for their money from high street banks and are getting frustrated… it’s almost as if they are being penalised”
The new financial year begins in just two weeks and your tax-free savings allowance for 2018/19 is a substantial £20,000†, so if you’re not 100% happy with the returns you’re currently earning, then make sure you consider the alternatives.
“You need to be diversifying your investment”
You could earn up to 5.35% pa* with Kuflink’s IF-ISA and, should you decide to transfer your existing ISA, we won’t charge you a penny to switch! *
Get up to speed with ISAs before the transfer deadline – watch the full interview here:
Boost your tax-free returns and open your Kuflink Innovative Finance ISA today:
- Invest up to £20,000 per annum tax-free†
- Choose your fixed term; 1, 3 or 5 years
- Transfer funds from your current ISA provider
- No platform or investment fees
- See your interest accruing daily
- Transfer your Cash, Stocks and Shares or Innovative Finance ISA
*Capital is at risk. Rate based on a 5-year fixed-term investment. Your existing ISA provider may charge you a fee to transfer out. You should seek independent financial advice.
† £20,000 annual ISA allowance set by HMRC
Bitcoin for Beginners: Investing in Cryptocurrency
Tales of tech-savvy investors becoming overnight Bitcoin millionaires have captured everyone’s attention this past year, but cryptocurrencies aren’t without risk – you’ve likely heard just as many horror stories about huge drops in value and Bitcoin-related scams.
From the complicated coin mining process to Bitcoin’s anonymous creator, the entire crypto-economy is shrouded in secrecy, so Kuflink has put together this handy guide to help you navigate your way through 2018s biggest financial trend:
What is Cryptocurrency?
Cryptocurrencies are electronic currencies that are not directly related to any bank, government or country. There are no physical coins or notes; each ‘coin’ is actually just a heavily encrypted code. The most popular form of cryptocurrency is undoubtedly Bitcoin, but you may also recognise emerging currencies such as Ripple and Ethereum.
What are the Benefits of Using Cryptocurrency?
One of the key benefits of cryptocurrencies is the fact that, as they operate independently of traditional economies, they aren’t subject to inflation, exchange rates or market manipulation in the same way as centralised currencies. Many users also favour the anonymity that cryptocurrencies offer – transactions are much harder to trace than those made by cash or credit.
What is a Bitcoin worth?
The value of a Bitcoin is volatile and varies hugely from day to day; at the time of writing, a Bitcoin is worth approximately £6,250, although ‘the price frequently moves by more than 10% within hours’. As cryptocurrencies aren’t asset-backed or centralised, their value is subject to sudden large increases or decreases. Think of the price as an agreement on what people are willing to pay for a Bitcoin rather than a predictable figure based on, for example, the price of gold.
Tips for Investing in Cryptocurrency
There are three main ways to gain Bitcoins – you can buy them, get paid in them or mine for them. Mining is a complex process which uses powerful computers to solve mathematical problems, and can take months of hard work for even the most skilled miners.
It’s wise to spend some time thoroughly researching how the system works before you invest – individuals have made huge amounts of money from trading cryptocurrencies, but the market is volatile and technically in-depth, you’ll need to make sure you understand what you’re investing in.
You’ll also need to be careful which platforms you buy from or trade via, as there have been a number of online scams targeting Bitcoin, which are almost impossible to trace once they’ve been taken.
Cryptocurrency vs Peer-to-Peer Investing
If you prefer less volatile, asset-backed investments, Kuflink offers up to 7.2% interest pa gross* on a variety of exclusive property-backed opportunities and, with over £15 million invested via the online platform to date, our investors have never lost a penny!* Sign up today in just 4 easy steps.
*Capital is at risk. Rate correct as of March 2018. You should seek independent financial advice.
Buy-to-let investments down 80%
You often hear that ‘property is the safest investment’, and many consider rental opportunities as the gold-standard of investing – yet the latest figures show an 80% drop in UK buy-to-let mortgages. So, why are landlords turning their backs on what has traditionally been a cornerstone of property investment?
Many would-be landlords worry that they will be faced with difficult tenants, nightmare evictions and expensive maintenance bills, which are substantial risks in return for often modest profits. This, in addition to the numerous financial changes made to buy-to-let investment, have changed the entire UK rental landscape for 2018:
IMLA, the mortgage lender trade body, report that new money invested in buy-to-let properties has fallen by 80% since 2015
Property Hub have named their top investment hotspots for the year, and they’re all up North! As property prices in London continue to slow, cities such as Manchester, Liverpool and Leeds are enjoying record levels of investment and interest.
Tenants are no longer liable for any referencing or renewal fees, and the government is launching an Ombudsman service to mediate tenant-landlord disputes
How else can I invest in property?
If you’ve decided against a buy-to-let property but are still looking for investment opportunities secured against UK property, you’ll be pleased to know that there are other options. Sign up to Kuflink today for exclusive deals offering up to 7.2% interest pa gross* without all the hassle!
Invest from just £100
Earn up to 7.2% interest pa gross*
Interest paid monthly
Secured against bricks and mortar
Invest for typically 3 to 12 months
No account management fees
FCA Authorised
*Capital is at risk. Rate correct as of March 2018. Independent financial advice is recommended.
