Peer-to-Peer lender Kuflink launches property-backed ISA
Peer-to-peer lender Kuflink has launched a property-backed Innovative Finance ISA.
The one-year or three-year fixed term ISA can be opened with a minimum investment of £100 and a maximum of up to £20,000 per annum, under current 2017/18 allowances. Capital is repaid at the end of the term and interest of between 4% and 5% is paid annually.
Kuflink, which is sister firm to short-term lender Kuflink Bridging, has also launched an investment option for both corporate and individual investors and relaunched its existing offering as Select-Invest.
With Select-Invest, investors can choose from a selection of properties and benefit from the 20% stake taken by Kuflink Bridging in each property investment. Interest of between 5% and 7.2% is paid monthly and capital is repaid at the end of the term. The product has a minimum investment and minimum top-up of £100, with no maximum.
The new Auto-Invest product involves investment in a pool of properties to spread the risk. The product benefits from the 5% stake taken by Kuflink Bridging in each property investment. As with the Select-Invest product, the minimum investment is £100 and there is no maximum. The terms are either one year or three years, with interest of between 4 and 5% paid annually.
Speaking about the new P2P products, Tarlochan Garcha, CEO at 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. [These] products provide options for individual and corporate customers who want to see a return that is so much more competitive than leaving money on deposit.”
Kuflink Group founded its P2P platform in 2016 and received authorisation from the Financial Conduct Authority (FCA) in April this year.