The first in a new series we're bringing you; Coffee with Kuflink. An informal chat - what's new, what's current, and what's on our minds.
Narinder Khattoare said, “There is no doubt that lenders like Kuflink have come through the COVID crisis very well. So many lenders dependent on the whims of their funders had to pull out and have yet to return. As a P2P business offering investors strong but sensible returns backed by the value of commercial property*, we were largely insulated and able to lend throughout the lockdown period.
We have been able to help a number of adviser firms who had clients caught out when their favoured lenders pulled offers or closed the door to new business. It also brings into perspective the old chestnut surrounding headline rates. So many brokers have been conditioned to look for the cheapest product, which is fine in principle if we are looking at long term lending but makes little sense in bridging particularly with terms of less then one year. Advisers should be looking for funding on which their clients can rely, rather than chasing a rate, for which very few cases will actually qualify and if they do, the money ‘saved’ in interest is actually negligible in real terms. At Kuflink, we maintain that the quality of service and funding availability we provide more than offsets the paper thin difference in interest charged.
In terms of what we are looking for as a lender, the answer is to move towards a stronger appetite for development finance, which we feel will be an area which is going to see considerable growth as the property market comes back to life.
Part of the reason also lies with the changing habits of investors, many of whom are looking to invest over longer periods, which would fit nicely with longer term development projects.
Ultimately though our mantra is that if we like the asset, can see a proper exit strategy then we are happy to lend over any term our products will allow from a few months upwards.
*Capital is at risk and Kuflink is not protected by the FSCS. Past returns should not be used as a guide to future performance. Securing investments against UK property does not guarantee that your investments will be repaid and returns may be delayed.
Kuflink Ltd is authorised and regulated by the Financial Conduct Authority (FCA) (Registration Number 724890). Kuflink Ltd has its registered office at 21 West Street, Gravesend, Kent, DA11 0BF, under company number 08460508. Kuflink Ltd has been approved by the Board of HM Revenue and Customs to act as an ISA manager on May 2017 to offer Innovative Finance ISAs - ISA manager No - Z1943.
Kuflink Bridging Ltd is authorised and regulated by the Financial Conduct Authority (FCA) (Registration Number 723495). Kuflink Bridging Ltd has its registered office at 21 West Street, Gravesend, Kent, DA11 0BF under company number 07889226.
Kuflink One Ltd is authorised and regulated by the Financial Conduct Authority (FCA) (Registration Number 922026). Kuflink One Ltd is registered in England at 21 West Street Gravesend, Kent DA110BF under company number 12206864.
© 2021 Kuflink Group Plc. All rights reserved. Kuflink ® is a registered European Community trademark (No. 1553541 & 1553358) and a registered United States trademark (No. 79295020 & 79295083) of Kuflink Group Plc.
*Capital is at risk and Kuflink is not protected by the FSCS. Past returns should not be used as a guide to future performance. Securing investments against UK property does not guarantee that your investments will be repaid and returns may be delayed. Tax rules apply to IF ISAs and SIPPs and may be subject to change. Kuflink does not offer any financial or tax advice in relation to the investment opportunities that it promotes. Please read our risk statement for full details.