Essentially Kuflink’s Loan Tiers are risk bands that are measured by Loan to Value. We will be offering multiple Tiers on certain Select Invest loans making it easy for you to choose 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
Tier No. LTV Order of Priority
Tier 1 22% 1st
Tier 2 46% 2nd
Tier 3 62% 3rd
Tier 4 75% 4th
Please remember that the LTV for tiered loans may vary from the above example so please ensure you check what LTV applies to the tier and loan that you are looking to invest in.
Each Tiered Loan will have a different Interest Rate depending on the LTV that applies to it. For example, by accepting Tier 4. as above, you are accepting a Higher LTV risk and you are accepting being paid last, as listed above in the order of priority, all in consideration for a higher interest rate.
With Tiered Loans, the lender not only gets to choose which loans they want to invest in but also the level of risk within that loan.
Each Loan Tier will then have a different return rate depending on the LTV bracket that applies to it – the higher the LTV risk you are willing to accept, 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.
Order of Priority
Order of Priority, when capital and 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 and interest repayment, then Tier 2, then Tier 3, and then Tier 4. When Lending in Tiered Loans, you and all lenders in all the Tiered Loans of the security charge are accepting the order of priority, linked to LTV's, when you invest.