Kuflink eyes June launch of BTL loan product
Kuflink will launch its first-ever buy-to-let (BTL) lending product by the end of June 2022, as the peer-to-peer lending platform prepares to further expand its offering.
Narinder Khattoare, managing director of Kuflink, describes the BTL product as “a natural progression” for the company, which specializes in property-backed P2P lending.
“We have funded a substantial amount of development loans over the past two years,” he says.
“BTL is a natural progression as our borrowers have been asking for more about it over the past 12 months.”
Initially, the BTL product will only be offered to mature borrowers, before being extended to the whole market. Three- and five-year loan terms will be offered, with borrowing rates initially set at 4.99% and 6.99%, respectively. Investor returns are not yet confirmed.
“We’re not going to be the cheapest or the most expensive,” Khattoare says. “But we are an agile company and able to rapidly scale prices and our offer in the market, because we are not funded by institutions.”
Read more: The growth of IFISA is due to word of mouth
Kuflink borrowers have also expressed growing interest in mezzanine loans, and in response to this demand, the platform recently quietly rolled out a new mezzanine facility for existing customers.
Khattoare adds that Kuflink has always intended to expand its lending offering and add mezzanine and BTL products, but “the development of our investment platform has taken precedence over that to continue to deliver the great experience and the user interaction we have for our investors”.
This is just the start of scaling Kuflink. Khattoare hints at a number of new product launches on the horizon, including IFISA-friendly loans and loans in new areas.
Read more: Kuflink to launch buy-to-let commercial loans
“We need to be able to meet our service standards and only when we are satisfied with that will we consider other products,” he adds.
“We have a really good flow of transition and development requests coming in and a great team here helping to push them through. This allows the team to work on other projects that can further improve Kuflink’s offering to the market. »
To date, nearly £200m has been invested in Kuflink’s loan portfolio, funding thousands of property developments along the way. Not a single lender has lost a penny of their money to date.
Khattoare wants to build on this strong track record to grow Kuflink into one of the biggest P2P lenders in the UK in the next few years.
More product launches are planned for the coming months and Khattoare has already started hiring new people to run the new business.
“There are always challenges in launching new products,” he says.
“But we are convinced that everything will turn out well and that there is a place for our offer in the market.”
Read more: The biggest P2P companies are now based outside of London