Kuflink FAQ's

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HOW DO I REVERIFY MY IDENTITY?

If you do not verify your identity as part of registration, you can return and complete this at a later time by selecting ‘ID Check’ located in the top right corner of the platform.

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I DO NOT HAVE ACCESS TO A CAMERA OR A SCANNED COPY OF MY ID, IN THIS INSTANCE WHAT CAN I DO?

If you do not verify your identity as part of registration, you can return and complete this at a later time by selecting the ‘ID Check’ located in the top right corner of the platform.

WHAT IF I DO NOT HAVE THE RELEVANT ID OR MY PASSPORT HAS EXPIRED?

Most investors use their driving license or passport to verify their ID, although there are some alternatives we can accept.

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WHY DOES KUFLINK REQUIRE ANNUAL VERIFICATION WHEN OTHER PLATFORMS I INVEST WITH DO NOT?

It is up to each platform to decide how they interpret anti-money laundering regulations. In our view, given that an investors’ personal details and/or status may have changed significantly in the years since they first signed up with us, annual verification is an effective way to ensure we meet our security obligations.

The penalties for failing to implement sufficient AML procedures are severe and have the potential to affect the entire platform, so we’ve taken the decision to be safe rather than sorry.

WHY IS MY ACCOUNT SHOWING A PENDING STATUS?

Pending status indicates that you have submitted your details and our third-party AML provider is currently reviewing them.

 

CAN COMPANIES BORROW FROM KUFLINK BRIDGING?

We accept UK Limited companies, although a personal guarantee and debenture are required.

CAN I APPROACH YOU DIRECT FOR ANY BRIDGING LOAN ENQUIRIES?

You can approach us directly for all bridging loan inquiries, however, we will not be able to provide you with any financial advice. If you require advice before requesting a loan, you should speak to your independent financial advisor or visit www.unbiased.co.uk to find an advisor near you.

CAN INDIVIDUALS BORROW FROM KUFLINK BRIDGING?

Yes, including sole traders, partnerships, and LLPs.

DO I GET CHARGED LEGAL FEES?

The borrower is responsible for Kuflink’s legal fees in addition to their own solicitor’s fees. Prior to Kuflink instructing solicitors for any legal work, the borrower is required to lodge Kuflink’s legal fees inclusive of VAT with their own solicitor on an undertaking basis.

DO I NEED A VALUATION ON THE SECURITY PROPERTY?

We reserve the right to request a valuation and the borrower will be liable for these valuation costs. An existing valuation should be no more than three months old.

HOW CAN THE LOAN BE REPAID?

The borrower must provide a satisfactory exit route to Kuflink to confirm how the loan will be repaid, which, for example, may be through selling the property or refinancing.

WHAT CHARGES DO YOU ACCEPT?

We accept 1st and 2nd charges at our discretion.

WHAT IS A 1ST AND 2ND LEGAL CHARGE?

In a mortgage by legal charge, the borrower remains the legal owner of the property, but the creditor gains sufficient rights over it to enable them to enforce their security (e.g. to take possession of the property or sell it). The debtor in this instance can be first in line or second in line; for the second charge, the creditor will need consent from the first creditor to place a charge on the title.

WHAT IS A BRIDGING LOAN?

Bridging loans are a short-term funding option that can usually be arranged in a matter of days (as opposed to weeks or even months with a traditional mortgage).

Bridging loans are assessed by weighing up the value of the asset versus the loan requested against it. Factors such as the borrower’s ability to service the repayments on the loan, and the borrowers plans for existing the facility can influence the interest rate offered.

WHAT IS A DEBENTURE?

n the UK, a debenture is a name given to a security agreement that sets out the terms under which the borrower provides security to a lender. It is usually given in respect of a company rather than an individual.

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WHAT IS A PERSONAL GUARANTEE?

A personal guarantee is essentially a written agreement whereby the borrower makes themselves personally liable for a debt. If they personally guarantee the debts of their business, the lender can take ownership and dispose of the assets owned by the business as well as the borrower’s personal assets if they default on the loan.

WHAT IS AN EQUITABLE CHARGE?

An equitable charge refers to a security placed against a property – it is like a mortgage and may be enforced by a court order for sale. It does not grant ownership or possession to a creditor but does give the right to the judicial process for recovery of the loan amount in case of non-payment.

WHAT IS THE MAXIMUM LTV YOU WILL CONSIDER?

The maximum LTV we will consider is 75%.

WHAT IS THE MINIMUM AGE OF AN APPLICANT YOU WILL LEND TO?

Kuflink is able to lend to those over the age of 18 only.

WHAT IS THE MINIMUM AND MAXIMUM I CAN BORROW?

The minimum you can borrow is £50,000 and the maximum you can borrow is £750,000, although other requests will be considered on a case-by-case basis.

WHAT IS THE MINIMUM AND MAXIMUM LOAN TERM YOU WILL ACCEPT FOR A BRIDGING LOAN?

The minimum loan term we will accept is one month and the maximum loan term we will accept is 24 months.

WHAT LOAN PURPOSES WILL YOU CONSIDER?

All loans must be for business purposes, including property development, refurbishment, and renovation, acquisition of property, business purposes, acquisition of business assets and cash flow.

WHAT PROPERTY TENURE WILL YOU LEND AGAINST?

We will lend against Freehold and Long Lease properties.

WHAT PROPERTY TYPES DO YOU LEND AGAINST?

We lend against commercial, semi-commercial, residential property (2nd Charge for business purposes) Investment Property, Auction, Buy-to-Let, and Land with or without planning permission nationwide.

WHAT REPAYMENT PROFILES DO YOU ACCEPT?

Serviced and Retained.

WHAT TYPE OF CREDIT HISTORY WILL YOU ACCEPT?

Most types of credit history are considered.

 

 

CAN I TURN OFF THE FEATURE IF I CHANGE MY MIND?

No. Once you’ve elected to compound your interest, this must remain for the entire period of that investment.

DO I NEED TO TAKE ANY FURTHER ACTIONS, ONCE I’VE TURNED ON THE FEATURE?

No.  You’ll automatically receive the higher amount at the end of the investment period.

 
 

DO I SEE THE VALUE OF MY INVESTMENT COMPOUNDING EACH MONTH?

No, but you will receive the total compounded amount on loan maturity.

 
 

HOW DO I COMPOUND MY INTEREST?

As soon as you invest in a live Select-Invest deal, within “My Portfolio” you will see an option to compound your interest for each eligible loan part.

HOW MUCH DIFFERENCE WILL COMPOUNDING MY INTEREST MAKE?

On a £5000 loan part @ 7.2%pa over 12 months, compounded monthly, you will earn an extra £12.12. This is an effective annualized rate of 7.44%.

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IS COMPOUNDED INTEREST SECURED?

Interest is accrued daily, compounded monthly and paid on loan maturity.  The total interest is calculated on the day that we repay the loan.  Because interest is paid on redemption, compounded interest is not secured.

WHAT IF I SELL A PART OF MY COMPOUNDED LOAN IN THE MARKETPLACE?

You are only able to sell the original capital invested.  Upon completion of that sale, you will get the fully compounded interest up to and including the end of the previous day, placed into your wallet.

The purchaser of your loan then has the option to compound their interest should they wish.

WHAT IF THE LOAN DEFAULTS?

In the event of a repayment shortfall, the order of payment priority will be capital first.  Then, all interest due back to investors will be paid proportionally.

WHAT IF THE LOAN MATURES EARLY?

As with all other select-invest deals; if a loan repays early, you will earn interest up until the day the deal is repaid.

WHAT IS COMPOUND INTEREST?

Each month you earn interest on an amount invested.  The amount you have invested remains the same, and so the interest you earn also remains the same.  However, reinvesting that earned interest each month increases your investment amount for the remaining period, earning you more interest the following month.  This re-investing of your earned interest is called “compounding interest”.  Here at Kuflink, we have created an algorithm that mimics the effect of compounding interest, – so your capital remains the same, but each month we roll over your interest to add to the next month’s calculation.

WHICH PRODUCTS ON THE KUFLINK PLATFORM CAN I COMPOUND MY INTEREST ON?

You can choose to compound interest on certain select-invest deals. You will be able to see which loan parts this feature applies to by logging in to your Portfolio.

Interest is compounded automatically for Auto-Invest and IF-ISA terms on the anniversary of the first investment. You can opt-out of this by contacting one of the Investor Relations teams

WHY DO WE OFFER ON SOME LOANS AND NOT OTHERS?

Kuflink’s Credit Committee chooses the most appropriate deals for compounding before a deal goes onto the platform.  So, you may see some select-invest deals are available for compounding, and others are not.

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ARE ALL OF YOUR OFFERS STILL IN PLACE?

Yes, they are. We continue to offer our Refer-A-Friend benefits, and continue to promote specific short-term offers to all our investors.

ARE YOU STILL ALLOWING INVESTMENTS?

Yes, we are. As we continue to lend to customers, we continue receiving inward investment, across all our offerings; Select-Invest, Auto-Invest and IF-ISA, to both new and existing investors.

ARE YOU STILL OPEN TO NEW CUSTOMERS?

Yes, we are. We are still lending to new opportunities, maintaining our always high levels of due diligence. If you would like to discuss your borrowing requirements, please contact us here.

ARE YOUR LOANS STILL PERFORMING?

Many of our loans continue to perform as planned. In some cases, and following government guidance, we have worked with borrowers to help them in their unique situation. For detail, visit the loan updates page on the specific deal you’re invested in. As with all Kuflink loans, they continue to be backed by UK property.

HAVE YOU INTRODUCED ANY ADDITIONAL FEES, SUCH AS MANAGEMENT FEES?

No, we have not. We have not introduced any new fees.

HAVE YOU REDUCED YOUR RATES?

No, we have not. We continue to offer the same great rates for both new, and existing customers in all our products.

HOW HAS COVID 19 AFFECTED KUFLINK?

Our team has been able to work from home, at full capacity. All our services and operations continue to remain unaffected.

WHO CAN I CONTACT TO DISCUSS MY LOAN OR MY INVESTMENT?

Our team is available to talk to about any aspect of your account; please feel free to call us directly on 01474 33 44 88, email us hello@kuflink.com, or live chat at www.kuflink.com . Our office hours are Mon – Fri, 09:00 to 17:30.

WILL YOU BE MAKING CHANGES?

No one knows quite what the future holds for both the Peer to Peer, and housing, industry. Our loans continue to perform overall, and the housing industry continues to receive positive news. We monitor the situation daily, and should we be forced to make any changes our investors will be the first to know. This message is accurate as of 2nd July 2020.

 

 

CAN I HAVE AN ISA ON BEHALF OF SOMEONE ELSE?

No, an ISA can only be opened by an individual.

CAN I HAVE MORE THAN ONE ISA?

As long as your total tax-free savings in 2019/20 are no more than £20,000, you can split them across a combination of cash ISA, investment ISA, or innovative finance ISA savings. However, they would have to be different types of accounts, meaning, for example, you can’t invest in two cash ISAs in the same tax year. So you can definitely have more than one ISA per year – they just have to be different types of ISAs

CAN I TRANSFER IN FROM A BUILDING SOCIETY ISA?

Yes, you can transfer in from a building society Cash ISA. When using the online transfer form, you’ll need to provide your building society roll number.

CAN I WITHDRAW FUNDS FROM MY ISA BEFORE THE MATURITY DATE?

No, as all of our ISAs are for fixed terms. Your capital will be repaid at the end of your chosen term.

DO I HAVE ANY PERSONAL TAX-FREE SAVINGS ALLOWANCES OUTSIDE OF AN INNOVATIVE FINANCE ISA?

Yes, you are entitled to a Personal Savings Allowance. Basic rate taxpayers can earn up to £1,000 interest pa tax-free, or, if you’re a higher rate taxpayer you can earn tax-free interest of up to £500 per annum across your savings, investments and deposit accounts.

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DO I NEED TO REPORT MY INNOVATIVE FINANCE ISA INTEREST ON MY TAX RETURN?

No, your ISA Manager Kuflink will report this to HMRC on your behalf. There is no tax payable on your interest, subject to you having met HRMC’s ISA allowance criteria.

DO YOU CHARGE FEES FOR MANAGING MY ISA?

No, we do not charge any management fees.

For our full list of applicable fees, please visit the ISA page on our website.

DO YOU CHARGE FEES FOR TRANSFERRING AN ISA TO KUFLINK?

No, we don’t charge any fees for transferring-in an ISA from another provider. However, you may be subject to fees from your existing ISA provider.

DO YOU NEED ANY ADDITIONAL INFORMATION WHEN I OPEN MY ISA?

To verify your identity, you will need to provide your National Insurance number as well as a copy of your UK passport or driving license.

DO YOU PROVIDE AN ANNUAL INTEREST STATEMENT FOR MY ISA?

Yes, this will be uploaded into your wallet annually.

DO YOU TAKE TRANSFERS IN FROM OTHER ISA MANAGERS?

Yes, we do accept transfers in from other ISA managers.

HOW CAN I TRANSFER MONEY TO FUND MY NEW ISA WITH KUFLINK?

You can fund your Kuflink IF-ISA by bank transfer. When you open your account, you will receive Kuflink’s bank details and your unique reference number, which you should quote whenever you send funds to Kuflink.

HOW CAN I TRANSFER MY ISA AT MATURITY TO ANOTHER PROVIDER?

Please send us an email at hello@kuflink.co.uk or give us a call on 01474 33 44 88 and we will be happy to organize your ISA transfer.

HOW DO I OPEN AN INNOVATIVE FINANCE ISA WITH KUFLINK?

You need to register on our platform and open your account in the usual way and once your wallet has been funded you should select the ISA option and the term you wish to invest for.

Firstly, you will need to create a Kuflink account in order to access the platform. Once you’re registered, follow the instructions to top up and then simply select the ISA option and the term you wish to invest for.

HOW DO I TRANSFER-IN AN EXISTING ISA TO KUFLINK?

Please follow this link, which will take you to the relevant forms that you need to complete.

Alternatively, you can log in to the platform, click on ‘My Investments’ and select ‘Transfer ISA’ from the drop-down menu.

We will do the rest and liaise with your existing ISA provider to ensure the transfer happens smoothly!

HOW MUCH CAN I INVEST IN AN ISA?

The annual allowance for the 2019/20 tax year is £20,000. You need to ensure that the total amount of new money you subscribe to an ISA (whether it is cash, stocks and shares, innovative finance, or a combination of the three) does not exceed the annual limit.

The minimum age is 18 years old.

IS THERE A COST FOR TRANSFERRING MY ISA TO ANOTHER PROVIDER?

To transfer your Kuflink ISA to another provider there is a fee of £35 payable to Kuflink.

WHAT ARE THE TAX RULES ON ISAS?

All returns are tax-free and do not count towards your interest allowance of £1,000 for basic rate taxpayers and £500 for higher rate taxpayers for the 2019/20 tax year. If you are unsure about your tax position, you should speak to an Independent Financial Advisor or your Accountant.

WHAT IF I EXCEED THE ANNUAL ISA ALLOWANCE?

As it’s possible to have a number of different types of ISAs, there is a risk that you might exceed your ISA allowance during a single tax year.

At the end of the tax year, records for individuals will be checked and HMRC will know if you have exceeded your annual ISA allowance for any given tax year.

Where HMRC identifies a potential breach of allowance, we will work with them and notify you of any remedial action.

Should we need to repair your ISA, we will not charge a fee.

Please note: your current ISA provider may charge you to transfer out.

WHAT INFORMATION DO I NEED TO PROVIDE TO SIGN UP?

You will need to upload a copy of your valid photo ID which could be Passport, Driving Licence or your National ID Card.For additional security we also require you to take a photo of yourself.

WHAT IS THE KUFLINK INNOVATIVE FINANCE ISA?

The Innovative Finance ISA (IF-ISA) was launched on 6 April 2016 as a new addition to the ISA options available. The IF-ISA allows savers to all or part of their annual ISA investment allowance (currently £20,000 in the 2019/20 tax year) to receive tax-free interest on funds lent through FCA-regulated peer-to-peer lending platforms. Kuflink was approved by HMRC as an ISA manager in May 2017

Kuflink Ltd became fully authorised by the FCA in April 2017, giving us permission to launch an innovative finance ISA.

WHEN DOES MY INTEREST GET PAID?

Interest is paid annually on the anniversary of your initial investment and the funds are credited to your wallet.

 

 

 

HOW LONG DOES IT TAKE FOR MONIES FROM A TOP UP TO REACH MY WALLET?

Account top ups should typically take no longer than 2 hours to reach your Kuflink wallet when using a Faster Payment Service (FPS) through your bank. Please ensure you use your Unique Transactions Reference to avoid any delays receiving monies into your wallet.

KUFLINK’S WIND DOWN ARRANGEMENTS

Kuflink has continued with its strong commitment to investing in the future of the platform. Developing new products and features centred around user experience has been at the core of our research and development. We wholeheartedly intend to keep investing in our team and infrastructure with a confident view of furthering Kuflink’s purpose of ‘Connecting People to Financial Freedom’. Nevertheless, as required by Regulations and being a responsible peer-to-peer platform, Kuflink also monitors its risks and has developed contingency plans for a variety of scenarios.

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WHAT IS AN ID CHECK?

You need to verify your identity in order to top up and use your Kuflink account. This policy is in line with a UK banking regulation called ‘Know your Customer’ (KYC) and is the process of a business verifying the identity of its customers.

These checks are solely to verify your identity, are not a credit check and will not be visible on your credit record.

WHAT IS KUFLINK’S DEFAULT RATE?

Definition of Kuflink’s default rate:

A loan is in default when it is 1 calendar month past a missed payment, with this payment still outstanding. This may be a monthly servicing payment or the full repayment at the end of the term.

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WHEN WILL MY CASHBACK BE PAID?

If you signed up via a cashback promotion, you will receive your cashback reward up six months after you make your first live investment on the platform, subject to meeting any minimum investment requirements.

Should you invest in a reserve deal as your first investment, you will receive your cashback 6 months after the deal goes live. In the event that a reserve deal doesn’t go live, you will have an opportunity to reinvest your monies into another live deal.

Please refer to the promotion’s terms and conditions for full details.

WHY DO I NEED TO TAKE A PHOTO OF MYSELF?

This verification process must be carried out before we can open new accounts and it’s becoming increasingly common that companies offering financial services use this technology.It is simply an anti-corruption and fraud measure.It’s easy to complete the verification with your smartphone or webcam in seconds.

WHY DO YOU NEED MY BANK ACCOUNT NUMBER AND SORT CODE?

Your bank account number is required to verify your account it is used to carry out a soft search but is not a credit search. We do not store your bank account number and we do not charge your bank account.

Auto-Invest

HOW AND WHEN IS INTEREST PAID ON AUTO-INVEST?

We pay interest annually on the anniversary of your investment, directly into your wallet.

HOW DOES AUTO-INVEST WORK?

With Auto-Invest, your funds and your risk are automatically diversified across a portfolio of UK property loans.

Interest rates vary depending on the term you wish to invest for – you could earn 5.00% interest pa gross for a 1-year fixed-term investment, 6.10% interest pa gross for a 3-year fixed-term investment and 7.00% interest pa gross for a 5-year fixed-term investment. As with all investments, your capital is at risk.

 

 

WHAT DOCUMENTATION DO YOU REQUIRE TO OPEN A CORPORATE ACCOUNT?

Please scan and email the following documentation to hello@kuflink.co.uk

  • A recent extract of the Register of Incorporation
  • A copy of the Articles of Association of the legal entity
  • Proof of Identity. The following is required for each shareholder:For UK and EU citizens either a copy of the current ID card, Drivers Licence or PassportFor all other countries, a copy of the PassportProof of address. Please provide one copy of the following for each shareholder which should be no more than three months old showing your name and address.

WHAT TERMS CAN I INVEST FOR IN AUTO-INVEST?

You can invest for 1, 3 or 5 years fixed.

Corporate Investors

ARE THERE ANY DIFFERENT LENDING OPPORTUNITIES FOR CORPORATE INVESTORS?

No, the same opportunities are available on Select-Invest and Auto-Invest for both corporate and individual investors.

However, the Kuflink IF-ISA is currently not available to corporate investors.

CAN I HOLD A CORPORATE AND AN INDIVIDUAL ACCOUNT?

Yes, you can hold an account as an individual and in a company name.

WHAT DOCUMENTATION DO YOU REQUIRE TO OPEN A CORPORATE ACCOUNT?

Please scan and email the following documentation to hello@kuflink.co.uk

  • A recent extract of the Register of Incorporation
  • A copy of the Articles of Association of the legal entity
  • Proof of Identity. The following is required for each shareholder:For UK and EU citizens either a copy of the current ID card, Drivers Licence or PassportFor all other countries, a copy of the PassportProof of address. Please provide one copy of the following for each shareholder which should be no more than three months old showing your name and address.

WHAT TYPE OF CORPORATE INVESTORS CAN OPEN A CORPORATE ACCOUNT?

Limited companies with a UK registered address.

WHEN CAN I START INVESTING?

Once you have sent over the required documentation (please see the FAQ: What documentation do you require to open a corporate account?) and have been notified by Kuflink that this has been accepted, you will be able to top up your wallet.

Once this has been reviewed and accepted by Kuflink you can start investing in the deals on the platform.

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