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* Don't invest unless you're prepared to lose money. This is a high-risk investment. You may not be able to access your money easily and are unlikely to be protected if something goes wrong. Take 2 minutes to learn more

Loan Tiers

Kuflink’s Loan Tiers are risk bands that are measured by Loan to Value. We may offer multiple Tiers on certain Select Invest loans to assist you in choosing what is right for you.

Kuflink splits a Borrower’s loan requirement into multiple parts creating Loan to Values for each

Example

Whole Loan 75% LTV

TierLTVOrder of priority
Tier 122%1st
Tier 246%2nd
Tier 362%3rd
Tier 475%4th

Please remember that the LTV for tiered loans may vary from the above example, so please ensure you check the LTV that applies to the tier and loan that you are looking to invest in.

Each Tiered Loan will have a different interest rate based on the LTV that applies to it. For example, by choosing Tier 4, as above, you are choosing a Higher LTV risk and you understand that you will be paid last, as listed above in the order of priority, to reflect the higher interest rate.

Each Loan Tier will have a different interest rate depending on the LTV bracket that applies to it, so, the higher the LTV risk you choose, the higher rate of return you could earn.

Loan Tiers could help you balance your risk exposure by allowing you to further diversify your Kuflink investment portfolio according to your personal risk appetite and investment plan.

Therefore, with Tiered Loans the lender chooses which loans they want to invest in and also the level of risk within that loan.

Order of priority when capital and/or interest is repaid

Whilst the whole loan is secured by way of a 1st or 2nd legal charge over the security property, the Tiers are ordered by priority. So, in the above example, Lenders who have lent funds in Tier 1 will be paid first on any capital repayment then Tier 2, then Tier 3, and then Tier 4. Similarly, once interest is collected, Tier 1 will be paid first then Tier 2, Tier 3, and Tier 4.

When Lending in Tiered Loans, you and all lenders in all of the Tiered Loans are accepting the order of priority when you invest.  If Kuflink recover and sell a property, capital is always recovered first.