Kuflink Review – What you need to know BEFORE you invest!
LINKS MARKED * ARE AFFILIATE LINKS.
In this Kuflink review we take a closer look at this peer to peer lending platform, to give you the important information you need to know BEFORE you invest!
I’ll look at the different types of account Kuflink offer and the requirements for investing in each – these being the Select-Invest, Auto-Invest and IFISA accounts. You’ll also find out how much interest you can expect to earn (including a limited time promo rate) and whether your money will be safe with Kuflink.
Let’s start by giving you a little more info as to who Kuflink* are and how they got started.
Who Are Kuflink?
Kuflink Started life back in 2011 as a bridging loan provider to property investors.
In 2016, the company launched its peer to peer lending platform to help fund its lending activity. The platform quickly started receiving high profile awards from industry players like Moneyfacts and PropertyWire. In 2017 the company launched its Auto-Invest and Innovative Finance ISA products.
Kuflink are fully authorised by the Financial Conduct Authority and therefore comply with their strict regulations.
What Accounts Do Kuflink Offer?
Kuflink currently offer 3 different types of account for you to invest in. These are the Select-Invest, Auto-Invest and IFISA accounts.
All of the Kuflink accounts involve investing in UK property-backed loans.
The main difference between each of these accounts is the way in which you invest and the tax you pay on your investments. Let’s briefly look at each of the accounts they offer to explain this further.
The Kuflink Select-Invest account
The Kuflink Select-Invest account* allows you to start investing from as little as £100.
This is Kuflink’s most flexible account with monthly interest payments and short-term loan options on offer.
The key feature of the Select-Invest account is that with this account, you personally select which loan deals you would like to invest in.
Each potential loan will carry a different interest rate payable. They will also carry a risk rating from A-C, with A rated loans considered to carry the least risk.
Investors typically invest in loans of around 3-12 months in this account, but you can obviously find new loans to invest in as and when you want to.
There are no account management fees and you can currently earn up to 7.2% gross per annum.
The Kuflink Auto-Invest Account
The Kuflink Auto-Invest Account* allows you to take advantage of the interest rates on offer from Kuflink without having to pick your own loans to invest in.
Auto-Invest offers fixed rates of interest of between 5% and 7% per annum. The amount of interest you will receive will depend on whether you invest your money for a 1, 3 or 5 year period.
You can invest from just £100 and it only takes a few minutes to open an account online.
With the Auto-Invest account, Kuflink will diversify your investment across a range of UK property loans on your behalf.
As the Auto-Invest account is a fixed-term investment, you will not be able to access your initial capital until your account matures.
Interest is paid annually on the anniversary of your account opening. Interest is paid directly into your Kuflink account wallet.
The Kuflink Innovative Finance ISA
Last but certainly not least we have the Kuflink Innovative Finance ISA*.
This account offers all of the benefits of the Auto-Invest account but any interest you receive will be free from UK tax.
There are no platform or investment fees associated with the account and you can invest from just £100.
You can invest up to your £20,000 ISA limit each year tax-free. You can also transfer an existing ISA to Kuflink.
The Kuflink Innovative Finance ISA offers fixed rates of interest of between 5% and 7% per annum. The amount of interest you will receive will depend on whether you invest your money for a 1, 3 or 5 year period.
With their Innovative Finance ISA, Kuflink will diversify your investment across a range of UK property loans on your behalf.
As the Kuflink IFISA is a fixed-term investment, you will not be able to access your initial capital until your account matures.
Interest is paid annually on the anniversary of your account opening, directly into your Kuflink account wallet.
Who Can Invest With Kuflink?
Now that you know more about each type of account Kuflink offer, you may be wondering if you are eligible to open one?
The first thing you need to know is that you need to be 18 or over to open a Kuflink account. You must also hold and maintain a UK bank account.
To be eligible for the Kuflink IFISA you must also be a permanent UK resident.
You can invest with Kuflink* as an individual or as a company.
If you already hold a Cash ISA, Stocks and Shares ISA or another type of ISA then don’t worry, you can still invest in a Kuflink Innovative Finance ISA too. Just be sure not to invest more than your ISA allowance across all your ISA accounts.
It’s worth mentioning that you can only invest into one Innovative Finance ISA in each tax year.
Is Your Money Safe With Kuflink?
Hopefully this Kuflink review will have given you a better idea as to who kuflink are and how they work. But will your money be safe with Kuflink?
The first thing to mention here is that Kuflink accounts are investment accounts. This means that your capital is at risk with Kuflink. However, Kuflink have put certain measures in place to try and mitigate that risk.
Firstly, Kuflink proudly state on their website that no investor has ever lost money using their platform. While this cannot be guaranteed for the future, it is reassuring nonetheless.
Secondly, Kuflink also invest 5% into all loans on the platform. This means that if a loss were to occur, Kuflink would take the hit on the first 5%.
For Select-Invest investors there is further protection in that Kuflink is the only peer-to-peer platform in the UK to guarantee 20% of every loan.
Finally, as Kuflink take a charge in each of the properties they lend on, if there were to be a problem with a loan, they can take possession of and sell the property in question.
We should mention that – as IFISAs are investment ISAs – they are not eligible for FSCS protection.
If you have any further questions in this area then be sure to visit the FAQ page on the Kuflink website.
IF-ISA Promo Rate Boost Details
Kuflink also have a limited time offer where you can earn a boosted rate of interest related to the length of time you invest. Find out more by clicking on the image below…
Kuflink Alternatives
If for some reason you feel that Kuflink are not the right choice for you, then you may be interested in looking at alternatives.
Companies like easyMoney, for example, specialise in lending to carefully selected property professionals. easyMoney currently offer returns on investment of up to 8% depending on which account you invest into and how much you invest. Like kuflink, they also offer an IFISA.
Find out more in our easyMoney review.
Summary
We hope that this Kuflink review has given you a better understanding of who Kuflink are and how they work.
So far, Kuflink can proudly say that none of their investors have lost money using their platform. This is no guarantee of future performance, but it is certainly encouraging.
If you prefer to take a hands-on approach to your investments then their Select-Invest account will allow you to do just that. If you’re looking for a more hands-off experience, then perhaps their Auto-Invest or IFISA account will be more suited to you.
Whichever you choose, it is quick and easy to invest your money with Kuflink and you can open your Kuflink account online* in just a few minutes.
*Capital at risk
*Kuflink Ltd not covered by FSCS
*Tax treatment is dependent on your individual circumstances + *Subject to HMRC requirements
*Past results do not guarantee future results
As mentioned at the beginning of this Kuflink review I may receive a small commission if you decide to invest. If you would rather we didn’t then you can sign up with Kuflink via this link instead.