P2P lender Kuflink launches property-backed IFISA

By Ryan Weeks on Monday 3 July 2017

Alternative Lending

Peer-to-peer platform with skin-in-the-game offering enters the IFISA market.

Peer-to-peer platform with skin-in-the-game offering enters the IFISA market.  

Kuflink, a property-backed peer-to-peer lending firm, has launched its Innovative Finance ISA, advertising interest rates of up to 5 per cent per annum. The company was granted full authorisation by the FCA in April.

Kuflink is a part of the Kuflink Group alongside a business called Kuflink Bridging, which itself became regulated in October of last year. Kuflink Bridging originates and underwrites loans which are then made available to individual investors on Kuflink. Kuflink Bridging maintains a 5 per cent, first-loss piece of all loans on the P2P platform.

There is of course a difference between the rate that loans are originated at by Kuflink Bridging and the rate delivered to investors, but Kuflink CEO Tarlochan Garcha has previously told AltFi that this is enough only to cover the company’s overheads. The P2P business Kuflink makes its money through being paid a fee of 2.5 per cent of the value of every Kuflink Bridging loan it lists.

The platform’s IFISA offering is comprised of two accounts: a 1 year fixed term ISA paying a gross interest rate of 4 per cent per annum, and a 3 year fixed term account paying 5 per cent per annum. The minimum investment amount for both is £100.

The platform has also launched an auto-invest tool in tandem to the launch of its IFISA offering, allowing investors to diversify automatically with as little as £100.

“Unlike the majority of other ISA offerings in the market, I’m proud to announce that Kuflink is one of the very few platforms offering a Property-Backed ISA,” said Garcha. “Looking at the current state of the market, the timing of this launch couldn’t be better. As the profile of the Innovative Finance ISA rises, due to growth in the alternative finance sector, and the attractive interest rates, I expect to see strong demand for this type of ISA.”

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