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 expand its offering even further.
Narinder Khattoare, chief executive of Kuflink, describes the BTL product as “a natural progression” for the firm, which specialises in property-backed P2P lending.
“We have funded a substantial amount of development loans over the last two years,” he says.
“BTL is a natural progression as our borrowers have asked more about this over the past 12 months.”
Initially, the BTL product will only be offered to mature borrowers, before being rolled out to the wider market. Three-year and five-year loan terms will be offered, with borrower rates initially set at 4.99 per cent and 6.99 per cent, respectively. Investor returns have yet to be confirmed.
“We’re not going to be the cheapest or the most expensive,” says Khattoare. “But we’re a business that is agile and able to move the rates and our offering in the market place swiftly as we are not institutionally funded.”
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Kuflink’s borrowers have also expressed a growing interest in mezzanine loans, and in response to this demand, the platform quietly rolled out a new mezzanine facility recently to existing clients.
Khattoare adds that it was always Kuflink’s intention to expand its loan offering and add mezzanine and BTL products, but “the development of our investment platform has taken precedent over this to continue offering the great experience and user interaction we have for our investors.”
This is just the beginning of Kuflink’s scale-up. Khattoare hints at a number of new product launches on the horizon, including IFISA-friendly loans and lending in new areas.
“We need to be able to deliver on our service standards and only when we are happy with that, will we consider other products,” he adds.
“We have a very good inflow of bridging and development enquiries that come through and a great team here that help get these over the line. That allows the team some capacity to work on other projects that can further enhance the Kuflink offering in the marketplace.”
To date, almost £200m has been invested in Kuflink’s loanbook, 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 make Kuflink one of the largest P2P lenders in the UK within the next few years.
More product launches are planned for the months ahead, and Khattoare has already begun to hire new people to handle the new business.
“There are always challenges in launching new products,” he says.
“But we’re confident it will go well and that there is a place for our offering in the market.”