Kuflink launches Innovative Finance Isa

Kuflink launches Innovative Finance Isa

Kuflink, the bridging loans business, has launched a new Innovative Finance Isa for investors who want to fund property-related loans.

The provider has also rebranded its existing offering and launched a further product for corporate and individual investors.

Kuflink consists of two businesses, a peer to peer platform and sister business Kuflink Bridging, which offers property loans.

The money will be lent out via Kuflink Bridging, with the P2P platform offering interest rates to lenders of between 4 per cent and 7 per cent.

The company’s Innovative Finance Isa can be started with a minimum investment of £100.

Up to £20,000 can be invested this tax year, and the Isa comes with a one or three year fixed term, with capital repaid at the end of the term and interest paid annually.

The interest rate is between 4 and 5 per cent.

The company also rebranded its existing product for individuals and companies with the new name Select-Invest.

This product has interest rates of between 5 per cent and 7.2 per cent, and allows investment in a selection of properties.

The Select-Invest product also has a minimum investment of £100 and minimum top up of £100, but there is no maximum. 

The group has launched an Auto-Invest product open to individuals and corporates, where risk is spread throughout a pool of properties automatically, and interest is between four and five per cent.

Both of these products benefit from stakes that are taken in the loans by Kuflink itself, which the company says works as a form of protection against potential loss.

In the case of the Select-Invest product it is a 20 per cent stake and in the case of the Auto-Invest product it is a 5 per cent stake.

Tarlochan Garcha, chief executive of Kuflink, said: "We are delighted to bring these three products to the market, particularly our new Innovative Finance Isa, which is one of a very small number of similar opportunities for investors to invest in P2P with all the tax free advantages of an Isa wrapper.”

David Lamb, partner at Lamb & Associates Financial Planners in Ponteland, said that he does not recommend peer-to-peer Isas to his clients.

He said: "Most people wouldn't want that level of risk and I like to keep things simple."