Kuflink Review – My Peer To Peer Lender Experiences

kuflink review

Kuflink Review

** Kuflink review updated September 11th, 2019**

Welcome to my Kuflink review. I have been researching Kuflink for a while and decided to dip my investment toes into the Kuflink water when their generous new customer bonus offer was introduced. I have since found the company and lending options to be enticing.

Kuflink’s private bridging arm has been operating for many years but their peer to peer arm was quietly launched in May 2016 and has been gaining favour with peer to peer lenders since. Kuflink’s loan book is still relatively small but growing with over £24m invested as of September 2018. Even USA residents can apply for an account as long as you have a UK bank account.

In August 2018, I took a trip to Kuflink’s offices for an office tour and a sit down with Narinda (CEO), Hari (CTO) and Amy (Legal Executive).

Watch my video tour of the Kulfink offices including an interview with CEO Narindar Khattoare

My August 2019 Investment: Unchanged
My estimate annual rate of return: 6.9% (After fees but before taxes)
Est. Annual Returns:Up to 7.2%
Recent Return Rate Trend:← →
My Risk Rating *:
Do I Currently Invest:
Early Exit:
Provision Fund:
ISA Available:
Loan Types:Property
Loan Security:Property
Lender Fees:None
Min Investment:Varies (enough to earn 1p interest)
Avg. Lender Portfolio Size:N/A
Time to Become Invested:Varies on demand & supply
Time Needed Managing:
Med manual, none auto
Lending Agreements With:Borrowers
FCA Regulation:Full
Cashback Offer:
Up to £250
Sign Up:Sign Up

* This opinion risk factors in loan types, interest returns, company history, default numbers and my own investing experience. Risk rating explained here.

** Kuflink offers between a 5-20% first loss guarantee on loans should they default. This is explained in the review.

How Do I Sign Up /  Any Bonuses?

Click here to sign up for my exclusive Kuflink cashback offer(New customers receive £100 cashback when you invest £500+ or £250 cashback when you invest £5,000+. Must invest into loans or autoinvest account within 24 hours of first investment. Read the terms and conditions here. When you open an account through my website, it helps me to continue to operate and offer new reviews).

My Kuflink Review: What You Need To Know

Thumbs Up
  • Loans secured by property / low default rates
  • Kuflink invests up to 20% (loans before April 2018) or 5% (loans after April 2018) of its own funds into each loan
  • Takes 20% (manual lend) and 5% (auto-invest) first loss on each loan
  • Secondary market for loan buying and selling
  • Very transparent. Each loan is well documented and explained / property valuation reports are easily accessible
  • Pre-launch (aka reserve) loans pay cashback
  • Many repaid loans in 2018
  • Manual and auto-invest options. Auto-invest offers a lower average LTV
  • You can cancel your loan bids prior to loan going live
  • 14 day cooling off period for new customers
  • Low £ minimums for reinvestment of interest payments
  • Family owned business with extensive lending experience
  • Has a charitable foundation to help local community
Thumbs Down
  • Launched in 2016 / shorter trading history
  • 90-day liquidation property valuations could be optimistic
  • Auto-invest payments are made annually
  • 0.25% per loan seller fee on secondary market
  • Can’t choose how much of a secondary market loan to buy
  • ISA only available using auto-invest product
  • The word “guarantee” should be removed from the 20% first loss claims
  • Auto-invest rates on shorter terms are lower than some self-select loans
  • Need to manual invest to achieve best return rates
  • No statistics page on website

Read more below in my exclusive Kuflink review.

Alternative Companies

Lendy, Funding Secure, Moneything

Kuflink Review: My experiences so far…

I made my first investment through Kuflink in April 2018. I watched their loan offerings and repayment history for over a year prior to investing. It’s still early days for me but the loans seem reasonable. Default recovery is now vitally important as loan books mature so I will wait and see how experienced Kuflink is in this area. When I invest through a newer peer to peer company with a smaller loan book, I proceed with caution, especially when returns are on the mid to lower end.

In August 2018, I hopped on the train to Gravesend to visit Kuflink’s offices and meet the staff. I was particularly impressed with the staff’s dedication and passion, the strong foundation of company culture and the founders’ charitable hearts. I could tell Kuflink’s team truly care about their borrowers and investors’.

What Is A Kuflink?

Kuflink is a peer to peer lending company that offers lenders opportunities to invest into short-term, 3 to 12 month bridging loans. All loans are secured by property should the borrower default. Kuflink offers both manual (non ISA account) and auto-investing (ISA and regular accounts) accounts with varying return rates. Kuflink invests their own funds alongside lenders’ so their interests should be aligned with lenders.

How Can I Contact Kuflink?

Email: hello@kuflink.com
UK Tel: 01474 334499

When Did Kuflink Launch?

May 2016

Are They Regulated?

Yes, by the Financial Conduct Authority #724890 under full permissions granted April 27th, 2017. Investments made through Kuflink are not covered under the FSCS (Financial Services Compensation Scheme). FCA regulation is nothing like the FSCS, which covers consumers when they deposit money in banks. The FCA reports to the UK government and has the ability to pursue criminal action against companies which violate its standards and codes of conduct.

Who Can Open An Account?

Any person 18 years or older who has a UK bank account and can pass the verification checks. If you live in a foreign country and you have a UK bank account, you can apply.

Does Kuflink Allow Corporate Accounts?

Yes, you can open an account under a corporation. You just need to provide the necessary documentation. You can read more here.

What’s The Signup Process Like?

Kuflink runs the usual anti-money laundering checks. You can open an account in five minutes by providing a name and email address and then uploading a copy of your passport or drivers license. I found the verification and account opening process to be quick and simple. Overseas investors are welcome but they must have a UK bank account.

I tried applying as a USA foreigner and was approved in three minutes. I filled out the information online, uploaded my passport photo and verified my identity using an SMS link and a selfie photo. Kudos to Kuflink for making the process so easy.

What’s The Minimum Deposit / Investment?

Minimum deposit: £100
Minimum Auto Investment: £100
Minimum Manual Loan investment: This varies depending on the time of the month as min investment must be enough to earn 1p of interest. The later in the month you invest, the higher the minimum investment will be.

How Are Deposits Made?

Via bank transfer or maximum £9,999 via a debit card

Does Kuflink Offer An Innovative Finance ISA (IFISA)?

Kuflink offers an IFISA wrapper that can be used only for the auto-invest product.

What Types Of Lending Products And Accounts Does Kuflink Offer?

Select-Invest: This manual lending product allows lenders to choose which loans they would like to invest in. You cannot use the ISA to manual invest. Here’s what the self-invest dashboard looks like:

Kuflink reviewAuto-Invest: Terms of 12, 36 and 60 months are offered. Your investment is automatically diversified across a portfolio of loans. Each term pays a different return rate. Investing is as easy as depositing money, picking your term and choosing your investment amount. Here’s what the auto-invest dashboard looks like:

Kuflink review

How Much Gross Annual Interest Are Lenders’ Paid?

Manual invest: Up to 7.2%
Auto invest fixed terms: 5% for 12 mo., 6.1% for 36 mo., 7% for 60 mo.

These rates have risen but do not take into account defaults or cash drag (aka the time between you pledging money and the time the loan is funded and goes live).

Is Interest Paid Immediately Or When the Loan Starts?

When you manual invest, loans are offered prior to launch. When you pledge money, daily interest accrues and is then paid as cashback the day the loan goes live.

When Is Interest Paid?

Manual invest interest is paid on the first business day of the month.
Auto-invest interest is paid annually on the anniversary of your investment.

Is There A Secondary Market

Yes. Kuflink launched this on February 1st, 2019. It allows lenders’ to buy and sell loans with no premiums or discounts. If you sell a loan you will be charged a 0.25% fee.

Am I Lending To Kuflink Or The Borrower?

Kuflink is a true peer to peer lending company so you’re loaning money directly to borrowers rather than to Kuflink the company.

What Are The Fees?


How Much Time Will I Need To Spend Managing My Investments?

If you chose to manual lend and are considering investing any substantial amount of money, you should be prepared to perform your own due diligence to verify property valuations. The amount of time needed to research loans will come down to personal preference.

If you auto-invest, you will spend no time managing your investment other than when it comes to term.

How Long Are The Investment Terms?

Manual invest: 3 to 12 month loan terms
Auto-invest: 12, 36 or 60 month terms

What Security Does Kuflink Lend Against?

Kuflink secures each loan by placing first or second charges on the property that is being borrowed against. If the borrower defaults, a first charge on a property can be used to attempt to recover capital and interest. Second charges are far more troublesome in default recovery, especially when property loan to values are higher. Kuflink keeps property loan-to-values below 75% but they can be much lower depending on the loan.

What Are The Loan Default / Loss Rates?

Kuflink states their default rate between April 2017 and September 2018 is 0%. Kuflink’s website does not offer a general statistics page but you can find some statistics here in the FAQ section.

What Are The Main Risks?

Company Failure: This is a risk with every peer to peer lending company, especially ones with smaller loan books. If their business model fails, investors could lose all of their investment though it’s more likely they would lose some of their investment.

Economic downturn: Kuflink has yet to experience a severe downturn in the economy. If a downturn were to occur, Kuflink might experience higher borrower default rates.

Valuation issues: Some peer to peer companies have struggled to obtain accurate RICS property valuations. If the valuations are incorrect and the property defaults, there may be a shortfall in recovery amounts.

Borrower defaults: If borrowers stop making loan payments, a default process is put into motion. Property default recovery can be lengthy, sometimes running into years.

Is There A Provision Fund?

Technically Kuflink doesn’t have a provision fund but it does offer a “guarantee” to take the first 20% loss of every loan it offers. This money is provided by Kuflink Group PLC which has over £4m in equity. This first loss offer is a unique level of protection offered to cover peer to peer lenders but is only as good as Kuflink’s ability to cover the losses. Personally, I think the word “guarantee” needs to be removed. You can read more on my thoughts about this later in the review.

What Happens If Kuflink Goes Out Of Business?

Kuflink would try to sell all or part of its loan books to a suitable FCA regulated purchaser who can continue to operate the loan book. If this isn’t possible, then Kuflink has ring-fenced £150,000 for insolvency procedures as per their insolvency companies quoted fees. After the Collateral debacle, I think £150,000 is low for insolvency proceedings so let’s hope Kuflink stays solvent. There are no details on Kuflink’s website detailing who the third party insolvency administrator is.


Kuflink Invest Up To 20% Of Its Own Capital In Each Loan

Kuflink invested 20% of its own capital into loans issued prior to April 2018 and 5% of its capital into loans issued after April 2018. It’s certainly nice when a company has skin in the game.

Loans Secured By Property

All of Kuflink’s loans are secured by property so if the borrower defaults, the capital and interest can try to be recovered by selling the property.

20% (Manual Lending) and 5% (Auto-Invest) First Loss

If a loan runs into trouble, Kuflink “guarantees” to take the first 20% loss for all manual lending loans and 5% first loss on all auto-invest account loans. This lowers lender risk as long as Kuflink is financially able to stand by this guarantee should the worst happen. While I do like the fact Kuflink has skin in the game on each loan, the 20% first loss can never be 100% guaranteed. In fact, guarantee is a word the FCA doesn’t like being used. (You can read more in my thumbs down section).

Pre-Launch Reserve Loans Pay Cashback

If you pledge money to a loan in its reserve or pre-launch stage, you will be paid daily interest in the form of cashback the day the loan goes live.

Secondary Market

Kuflink’s resale market allows lenders’ to buy and sell loans. There are no premiums or discounts.

I recently tested the market with a small resale amount. I was able to sell my loan part within two hours.

The secondary market isn’t the easiest feature to find, so here’s how:

Kuflink review

The one feature I would like to see adjusted is the ability for the loan buyer to choose the amount of the loan part they would like to buy. For example, on the above graphic, you can see if you wanted to buy the Warwick Crescent loan you would be forced to by a £5,000 chunk rather than choosing how much of the loan you wanted to buy.

Well Documented Loan Information And Valuation Reports

I’m impressed with how much accessible information Kuflink provides on each offered loan. This includes valuations, a loan rating from A to C, loan-to-value percentage, borrower credit health, Kuflink’s loan stake size, and easy to find RICS valuations:

Kuflink review

Not every peer to peer lending company provides RICS valuation reports on there website so this is a nice feature for those wanting to do their own due diligence.

Many Loans Repaid

it’s always good to see a peer to peer lending company with a stable history of multiple loan repayments. Every 2017 loan but one was paid back on or before the term end date. The single extended loan was repaid one month later. In 2018, many loans were repaid. Not many peer to peer companies can claim such a strong loan repayment start.

Auto-Invest Account Offers Lower Average Loan To Value (LTV)

Because Kuflink’s auto-invest lending products pay lower returns, it makes sense the loan-to-values of the properties in the portfolio would be lower. A lower ltv means less risk to lenders.

Cancel Your Loan Allocation Prior To Launch

This handy feature allows you to change your mind if you pledge money to a loan you decide you don’t want to proceed forward on. Simply contact Kuflink and they will remove your pledge prior to the loan being fully funded.

14 Day Cooling Off Period For New Customers

If you transfer money as a new customer, pledge money to loans and decide Kuflink’s not for you, Kuflink will allow you to cancel your loans and withdraw your money within 14 days.

Both Manual And Auto-Invest Products Available

Depending on how much time you want to spend managing your investments, you can choose from manual and auto-invest. Kuflink offers higher paying returns on its manual lending account while the auto-invest offers three terms of hand-off investing with varying return rates. I personally use manual invest only but auto invest rates have received a bump which makes them more attractive.

Low £ Minimums For Reinvestment Of Interest Payments

If you just want to dabble with a small starting investment amount on Kuflink, you’ll be glad to know loans have low investment minimums. The minimum investment must be enough to earn 1p of interest each month. The closer to month end, the more you must invest to earn minimum interest, hence the higher the minimum investment becomes. Each loans information page clearly displays the minimum needed:

Kuflink review

You can start investing in the auto product with £100.


Launched in 2016 / Shorter Peer To Peer Trading History

I consider investing trough newer peer to peer companies riskier because they don’t have a long-term established trading or default recovery history. Kuflink’s sister company has a long lending history.

20% First Loss Guarantee

While this is a great promise, it’s merely a promise that can never be guaranteed. Kuflink offers this 20% first loss guarantee on loans issued prior to April 2018 where they invested up to 20% of company funds into each loan. Kuflink currently invests 5% into their own loans. I’m not a fan of the word “guarantee” as the only things 100% guaranteed in life are death and taxes.

To make such a claim, Kuflink would need to have a large amount of funds ring-fenced in a separate bank account that couldn’t be reduced. There would no way for investors’ to verify this money actually existed. If Kuflink’s loan book were £100m, there would need to be £20m in liquid cash.

I do like the fact Kuflink has skin in the game on each loan which means they will take the first loss on any loan they have money invested in. Hopefully, the guaranteed wording will be changed.

90 Day Liquidation Valuations Could Be Overly Optimistic

90-day valuations estimate how much a property would sell for if liquidated within 90 days. Some of Kuflink’s third party 90-day property liquidation valuation estimates are 10% less than the open market value. RICS property valuations can be subjective and there have been some inaccurate valuation RICS issues within peer to peer lending.

In my defaulted loan experiences through other peer to peer lending companies, defaulted 90 day sale values tend to be much lower than open market estimates. We won’t know if Kuflink’s RICS valuation estimates are accurate until several defaults occur and are recovered.

Auto-Invest Payments Are Made Annually

When you invest in Kuflink’s auto-invest products, you will only receive one payment on your annual investment anniversary. This won’t be ideal for those looking for regular income payments.

Selling Fee on Secondary Market

I’m very happy to see the launch of Kuflink’s secondary market. If I could change one thing it would be to remove the 0.25% sales fee that is charged to the loan seller. I think secondary market fees can discourage people from selling loans, therefore slowing down secondary markets.

ISA Only Available For Auto-Invest Products

If you want to use manual investing using an ISA, you are out of luck. Kuflink only offers its auto-investing products under its ISA.

Auto-Invest SHoter Term Return Rates Are Lower Than Some Self-Select Loans

Considering Kuflink has a shorter trading history and no present default recovery history, I think Kuflink’s auto-invest short term return rates are low, especially on the one-year term. I do like the fact Kuflink increased these rates to make the risk more in line with the reward, but if you tie up your money for years, there are currently no exit options.

No Statistics Page On Website

While each individual loans shows statistics, and there are some statistics in the FAQ pages, Kuflink’s website doesn’t offer a general statistics page detailing default rates or loan history.

My Strategy

I watched Kuflink’s loan offerings for a while before I started investing. I choose loans manually that have first charges and offer reasonable loan to values. I don’t invest in second charge offerings because the interest returns are too low to warrant the risk. I have been investing and diversifying slowly. I am curious to see how successful Kuflink’s default recovery is.

If there was a way to exit, I would certainly consider the auto-invest option.

Kuflink Review Conclusion

After my visit to Kuflink’s offices and being able to chat with the founders and staff, Kuflink’s appears to be a solid peer to peer lending choice if you are looking for investment options secured by property at reasonable loan-to-values. Kuflink’s return rates are competitive, their default levels are very low and 22 loans were repaid loans in 2017. The newly introduced secondary market offers lenders’ a way to buy and sell loans.

The fact that Kuflink stakes their own money into each loan shows they have confidence in their loans and their first loss guarantee provides extra security for lenders even though I don’t like the word “guarantee”. I think the auto-invest option is attractive now but there’s no way to exit should you need your money early plus payments are only made once per year.

Click here to sign up for my exclusive Kuflink cashback offer(New customers receive £100 cashback when you invest £500+ or £250 cashback when you invest £5,000+. Must invest into loans or autoinvest account within 24 hours of first investment. Read the terms and conditions here. When you open an account through my website, it helps me to continue to operate and offer new reviews.)

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Disclaimers: I’m not paid to write this Kuflink review, nor am I employed by any of the companies I write about. In most cases, I have invested or continue to invest my own money through these companies. The sign-up links on this website are referral links. When you sign up for an account through my website, I receive a referral fee directly from the companies, at no cost to you. Your support enables me to continue to operate the Financial Thing website. You can read more about my referral links here.

** This Kuflink review is for information purposes only and should not be regarded as investment advice. Opinions expressed in this Kuflink review are only opinions based on my own personal experiences. As with any financial investment, peer to peer lending involves risks and it’s possible to lose money so never invest more than you can afford to lose. If you are unsure about investing, it is advisable to consult a financial professional **