Today I have the first in a series of three collaborative posts on the subject of equity release. This one examines the growing popularity of equity release and why it looks set to boom in the year ahead.
The equity release industry saw a massive expansion in 2021, with a record-breaking sum of over £4.8 billion being unlocked by retirees across the UK. This unprecedented growth has been welcomed amid a global pandemic, as the Equity Release Council helps regulate a retirement product that has given many retirees the means to a desperately needed income in these tough economic times.
Mark Patterson, the equity release expert from EveryInvestor, joins the ranks of fellow industry authorities in predicting that 2022 is set to be another record-breaking year. Let’s take a look at what’s expected and determine if unlocking equity is a good idea over the next few months.
Table of Contents
What Is Equity Release?
Equity release is a widely popular financial product for UK-based homeowners older than 55. In a nutshell, it gives you the opportunity to use your property’s equity but still live at home. With a third of UK retirees having less than £10,000 in retirement savings, equity release offers a lifeline to many. What’s more, the money can be used for any purpose.
According to figures from the Equity Release Council (ERC), equity release clients borrowed a total of £4.8 billion last year, a 24% rise on 2020’s figure.
Why is the Equity Release Industry Growing Amid a Tough Economy?
While many industries have crumbled in the wake of Covid 19, the equity release sector has grown tremendously. This is for several reasons, including:
Equity release provides financial security in a tough economic time.
The Equity Release Council has made the industry safe and is shifting a historically bad reputation.
Interest rates hit an all-time low in March 2021, and homeowners have received the best deals yet, with fixed-for-life interest rates.
Finally, growth inspires growth. As the industry expands, lenders offer more flexible products with bonus features, such as a free valuation or no completion fee.
What’s Predicted for 2022?
The future of equity release looks bright in 2022, and 80% of experts predict growth, with some believing this will be vastly beyond regular inflation. There are some key industry features that are likely to impact the industry (1).
First, the Equity Release Council announced on 31 January 2022 that all equity release lenders must offer the opportunity for voluntary loan and interest repayments. This announcement is welcome for potential borrowers, as voluntary repayments can vastly reduce the cost of your loan, yet there’s no obligation or risk of foreclosure.
On a slightly less positive note, equity release interest rates will rise in 2022 and should continue to do so until 2024. However, this could actually mean further industry growth. Rates are set to rise only slightly, and homeowners applying now will likely begin their equity release plans before we see any further increases.
Should I Unlock Equity from My Home at This Time?
With the market as it stands, it is a good idea to unlock equity if you’ve been planning to do so. However, it’s more complicated than just looking at the state of the industry.
Whether or not you should unlock equity from your home will depend on your personal circumstances and stage of life. What’s great is that equity release is safe; it’s overseen by the Equity Release Council and regulated by the Financial Conduct Authority (FCA).
However, to determine if it’s a good idea to unlock equity from your home, you should speak to a financial adviser. After all, seeking advice is compulsory when opting for an equity release product. The team at EveryInvestor will always encourage a whole-market financial adviser as they have an overview of the whole equity release market.
In Conclusion
Between flexible plans, the opportunity for voluntary repayments, and interest rates still low, now is a great time to release your property value through equity release. With another record-breaking year ahead of us, the industry is booming, and many more retirees are set to sign up to an equity release plan. Could you be next?
This is a collaborative post.
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Today I have a sponsored guest post for you from my friends at Best Free Stuff. There are some great tips and ideas for getting things free, plus at the end is a link to a free competition where you can win a Lindt Chocolate Bunny just in time for Easter!
There are lots of great ways to get free stuff. For many, this is like a treasure hunt. Once people get their deal, they tend to share the good news with others. So a free deal can go viral quickly. Here are some suggestions for how you can get loads of quality, free products.
Free samples are really popular. Manufacturers like to give them out because it is a very effective way to promote a product. When a product is launched, people may not buy it right away because they don’t know if they will like it. However, if they have a chance to try it for free, then they can buy it if they like it. You may have seen vendors giving out samples at a carnival or community festival. Companies know that no-one can resist a free product. So it’s a win-win for both companies and consumers with free samples.
You can also get freestuff when you search online. There are many websites that have a special focus on gathering information on all kinds of free offers. You can get skincare samples, snacks, cleaning products, movie rentals, and just about anything consumers would want. You just have to click on a link that is connected with the product and fill out some information. Do realize that the provider of the free item will probably add your contact information to their mailing list. So, if you request a lot of free things, you should get ready to receive a lot of email advertisements. You will get the option to unsubscribe, however. So there is little risk in signing up.
Sometimes you can get free trials on full-sized products, such as a software download or a subscription. Do beware of any free trials that require you to enter your credit card information, though. Sometimes it may not be that easy to cancel after the trial.
Don’t forget about classified ads too. Ordinary people are giving away good-quality things every day for various reasons. Perhaps their children have outgrown their toys. Maybe they are moving to a new home and don’t want to take their old furniture with them. A business that is closing offices may be liquidating office furniture and equipment. Craigslist is a popular online classified platform that lists thousands of free items every day, in all major cities around the world. You never know what will be listed each day. If you are looking for something in particular, just type in a search term under the ‘free’ category and see what comes up.
These are just some common ways you can get great free stuff. Free things get snapped up quickly, so if you want the best stuff, you need to be diligent and monitor places that list these giveaways. Sign up for email alerts and keep checking back. If you are in the right place at the right time, you can score a great deal.
If you like to enter competitions, then we found this great competition where you can win 1 of 300 Lindt Bunnies (see cover picture). Click this link to enter today!
This is a sponsored post.
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I’ll begin as usual with my Nutmeg Stocks and Shares ISA, as I know many of you like to hear what is happening with this.
As the screenshot below shows, my main portfolio is currently valued at £20,859. Last month it stood at £20,870, so that is a modest fall of £11.
Apart from my main portfolio, I also have a second, smaller pot using Nutmeg’s Smart Alpha option. This is now worth £3,166 compared with £2,682 last month. However, that includes an extra £500 I deposited in February. If you deduct this from the current value that gives a figure of £2,666, a net fall of £16.
Here is a screen capture showing performance over the last month.
Obviously a big factor affecting equity prices this month has been the situation in Ukraine. The orange dot on both charts above shows the date when Russia invaded.
The war in Ukraine is above all a human tragedy, but inevitably it has serious implications for investors as well. So far, as you can see from the charts, the invasion hasn’t had a major impact on my Nutmeg investments (there was actually a bigger fall the previous month, due partly to tensions in Ukraine but also to economic factors like rising inflation). But obviously, if things go badly in the coming weeks, there could be bigger losses to come.
Even so, I intend to stay calm and avoid any panic reaction. I certainly don’t intend to crystallize my losses since the start of 2022 by selling up. I have already topped up my investment once while asset values are depressed and intend to do so again before this year’s ISA allowance ends in April.
As I have said before on PAS, all equity investments should be regarded as medium to long term. And it is worth noting that since I started investing with Nutmeg in 2016 I have still enjoyed a total return on my main portfolio of 45.72% (or 64.72% time-weighted). I should also mention that I selected quite a high risk level for both my Nutmeg accounts (9/10 for the main one and 5/5 for Smart Alpha). This has served me well generally, but I’m sure investors who selected lower risk levels will have seen smaller falls over the last couple of months.
If you also have a Nutmeg portfolio and plan to withdraw from it in the next few months, there is certainly a good case for switching to a lower risk level right now.
You can read my full Nutmeg review here (including a special offer at the end for PAS readers). If you are still looking for a home for your 2021/22 ISA allowance, based on my experience over the last six years, they are certainly worth considering.
As regular readers will know, this year I am using Assetz Exchange for my IFISA. This is a P2P property investment platform that focuses on lower-risk properties (e.g. sheltered housing on long leases). I put an initial £100 into this in mid-February 2021 and another £400 in April. Everything went well, so in June 2021 I added another £500, bringing my total investment on the platform up to £1,000.
Since I opened my account, my Assetz Exchange portfolio has generated £44.26 in revenue from rental and £74.68 in capital growth, a total of £118.94. That’s a decent rate of return on my £1,000 investment and does illustrate the value of P2P property investment for diversifying your portfolio when equity markets are volatile.
I won’t bother publishing a statement on this occasion as it’s not hugely different from last time. The bottom line is that I (still) have investments in 21 different projects with them and all are performing as expected, generating income and – in every case now – showing a profit on capital. So I am very happy with how this investment has been doing.
To control risk with all my property crowdfunding investments nowadays, I invest relatively modest amounts in individual projects. This is a particular attraction of AE as far as i am concerned. You can actually invest from as little as 80p per property if you really want to proceed cautiously.
Another property platform I have investments with is Kuflink. They have been doing well recently, with new projects launching almost every day. I currently have over £2,100 invested with them, quite a large proportion of which comes from reinvested profits. To date I have never lost any money with Kuflink, though some loan terms have been extended once or twice. On the plus side, when this happens additional interest is paid for the period in question. At present all my Kuflink loans are performing to schedule.
Another of my Kuflink investments reached maturity in the last few weeks and I reinvested the capital released. You can see a screen capture of the new project below, a loan to convert some waste ground in the Stevenage district into a car park. It was a different sort of project from those I have previously invested in, but the case set out on the website seemed convincing.
My loans with Kuflink pay annual interest rates of 6 to 7.5 percent. As mentioned above, these days I invest no more than around £150 per loan (and often less). That is not because of any issues with Kuflink but more to do with losses of larger amounts on other P2P property platforms in the past. My days of putting four-figure sums into any single property investment are behind me now!
Nowadays I mainly opt to reinvest the monthly repayments I receive from Kuflink, which has the effect of boosting the percentage rate of return on the projects in question
You can read my full Kuflink review here. They offer a variety of investment options, including a tax-free IFISA paying up to 7% interest per year with built-in automatic diversification. Alternatively you can now build your own IFISA, with most loans on the platform (including the one shown above) being IFISA-eligible.
I’d also particularly draw your attention to Kuflink’s revised and more generous cashback offer for new investors [affiliate link]. They are now paying cashback on new investments from as little as £500 (it used to be £1,000). And if you are looking to invest larger amounts, you can earn up to a maximum of £4,000 in cashback. That is one of the best cashback offers I have seen anywhere (though admittedly you will need to invest £100,000 or more to receive that!).
I also recently published a blog post about another P2P property investment platform called BLEND. Like Kuflink, they offer the opportunity to invest in secured loans to experienced property developers. They offer (on average) somewhat higher rates of return than Kuflink, though arguably with a little more risk. As well as my blog post about BLEND, you can also check out what they have to offer on their website [affiliate link].
Moving on, I have another article on the always-excellent Mouthy Money website. This is quite a personal one in which I set out my views about the FIRE (Financial Independence, Retire Early) movement. For various reasons set out in the article I am not a fan of this. You can read my article here 🙂
That’s more than enough for now, so I’ll sign off till next time. I hope you are keeping safe and well, and (if you live in England especially) are enjoying the more relaxed Covid restrictions that now apply. Here’s looking forward to a more normal spring and summer than the last two years. If you’re planning any UK short breaks, don’t forget I have a list of places I have visited and recommend here 🙂
Disclaimer: I am not a qualified financial adviser and nothing in this blog post should be construed as personal financial advice. Everyone should do their own ‘due diligence’ before investing and seek professional advice if in any doubt how best to proceed. All investing carries a risk of loss.
Note also that this post includes affiliate links (disclosed). If you click through and perform a qualifying transaction, I may receive a commission for introducing you. This will not affect the product or service you receive or the terms you are offered.
If you enjoyed this post, please link to it on your own blog or social media:
As I’m sure you know, energy bills in the UK (and worldwide) are rising rapidly at the moment. Add this to tax hikes and surging inflation, and many of us will undoubtedly be feeling the pinch in the months (and years) ahead.
The government has announced various measures to try to mitigate the impact of energy price rises. These include £150 council tax rebates for those in Bands A to D and a (somewhat controversial) £200 rebate on energy bills, repayable at £40 a year over five years. These measures may help a bit, but they are unlikely to cover all the increased costs on their own.
So today I am looking at how you may be able to cut your bills by reducing the amount of gas and electricity you use. I am indebted to my friends at renewable energy specialists Ecoflow for their infographic (below) and research, which I shall be quoting from in this article.
Table of Contents
Infographic
The Ecoflow infographic below shows a range of data about household energy consumption, including how much electricity we typically use in a year and which appliances use the most.
The graphic shows that an average UK household consumes 14,900 kWh of energy (gas and electricity) per year. That represents a daily energy consumption of 40.5 – 48 kWh per household.
The graphic also shows the amount of power used by different appliances in the home. Not surprisingly, the ones using most energy are cookers (19% of our total energy consumption) and so-called wet appliances (21%). Wet appliances include any that use water – washing machines, dishwashers, electric showers, and so on.
Covid has of course led to a huge increase in working from home – a trend which looks set to continue even as we move out of the pandemic. This has inevitably resulted in an increase in household energy consumption. Ecoflow say that the UK’s electricity consumption saw a 10% increase in 2021, reversing the trend in 2020 during which consumption fell by 14% year on year. The sharp increase in 2021 came largely from a return to relative normality following the restrictions and lockdowns of 2020.
When Is Most Energy Used?
EcoFlow have produced a breakdown of how our daily habits affect our energy consumption, which appliances are the most energy-hungry, and how we can change our habits to reduce our energy consumption. I have set out the main findings below, along with some ‘top tips’ for reducing energy consumption in the part of the day concerned.
Morning
A survey into Britain’s most popular breakfast choices found that 4/5 of Brits’ favourite breakfast foods are cooked. Despite changing lifestyles and eating habits, a cooked breakfast is clearly still a very popular choice. But how much electricity does it consume? Cooking appliances such as hobs (0.71 kWh per use), ovens (1.56 kWh per use) and microwaves (0.945 kWh per use) account for 19% of average electricity use.
Top Tip – As microwaves are more energy efficient than ovens, try batch cooking at the beginning of the week and reheating leftovers, rather than using the oven for every meal.
Afternoon
Working from home obviously increases electricity consumption, as devices such as laptops (0.4 kWh for 8-hour days), monitors and webcams become essential aspects of our home office. But WFH also allows us to carry out daily chores such as vacuuming and using the dishwasher (3.13 kWh per cycle) throughout the day. As mentioned above, wet appliances account for around 21% of our total electricity use.
Top Tip – Simple things to look out for to reduce electricity consumption include switching your washing machine to ‘eco’ mode and ensuring you only run it when it’s full. This will not only save energy, it will save water as well (and money if you are on a water meter).
Evening
Ecoflow’s research found that electricity consumption increased by 21% during the winter of 2020 compared to the summer. As the days become shorter during the winter months, our electricity consumption goes up and use of lighting increases significantly. Lighting accounts for 14% of the overall electricity usage in a home – per bulb this is 0.84 kWh.
Top Tip – Turning off lights and/or switching to energy-saving LED bulbs is an essential part of moving towards a more energy-efficient way of living.
More Tips for Saving Energy
Here are a few more tips for reducing your energy consumption and cutting bills, starting with one from the infographic.
Unplug devices from the wall and turn off standby. Leaving devices such as TVs on standby uses extra electricity. Though only a relatively small amount, if devices are left on 24/7 the cost adds up.
With rising energy prices, switching to renewables such as solar panels becomes ever more attractive. Although the government has reduced financial incentives such as feed-in tariffs, the savings alone from generating your own energy are increasingly compelling.
Insulating your home to keep warmth in during the winter months can reduce your heating bills. Even simple, inexpensive things like putting draft-excluders at the bottom of doors can make a significant difference over the course of a year.
If you have an old, inefficient gas boiler, consider replacing it with a more modern one. The Energy Saving Trust estimates that an average household could save £195 by switching from an old, G-rated boiler to a new, A-rated condensing boiler with a programmer, room thermostat and thermostatic radiator valves. If you live in a detached house, you could save up to £300 a year. Obviously installing a new boiler isn’t cheap, but if you can find the money it should be a very good investment.
If you have an old, inefficient boiler and receive pension credit or tax credits, you may be eligible for a FREE boiler replacement under the government’s ECO scheme. For more information about this, check out the in-depth article above from my colleagues at Over 60s Discounts.
Keep tumble dryer usage to a minimum as they use large amounts of electricity. According to the Energy Saving Trust, an average tumble dryer uses roughly 4.5 kWh of electricity per cycle. Dry clothes outside if possible or over an airer.
Wash clothes at 30 degrees (or cooler) wherever possible. Modern washing machines will still do a good job at these lower temperatures, and again the energy savings add up.
Closing Thoughts
Obviously I hope rising energy costs will not cause you serious hardship. No-one should ever be forced to choose between ‘heating and eating’. But I hope the information and tips in this article will at least help you reduce your energy consumption in the months ahead and hence lower your bills.
Remember also that if you’re on a low income, there are government schemes such as the Warm Home Discount to help you.
In addition, you may be able to save money by switching energy supplier. Right now there aren’t many good deals around, but if you switch to EDF via my (affiliate) link you can get £50 credited towards your energy account, which should certainly help a little 🙂
Thank you again to my friends at Ecoflow for their infographic and research data. As their R&D Director, Thomas Chan, says: ‘We have to remain mindful of our energy usage and the direct effects it has on the environment and climate change. By becoming energy independent and using renewable sources of energy such as solar, people can avoid high electricity bills during the winter months.’
As always, if you have any comments or questions about this post, please do leave them below.
If you enjoyed this post, please link to it on your own blog or social media:
Today I’m looking at Hargreaves Lansdown, an investment platform I have used on various occasions myself over the last few years.
HL describes itself as ‘the UK’s number 1 investment platform for private investors’ and it’s hard to argue with that. It is officially the largest stockbroker in the UK and listed on the FTSE 100.
At the start of 2022 the company had a staggering £135.5 billion of assets under administration (AUA) – considerably more than their two biggest rivals in the UK, AJ Bell YouInvest and Interactive Investor.
Table of Contents
What Does HL Offer?
As you might expect for such a large company, Hargreaves Lansdown offers a wide range of accounts. These include:
Within their investment accounts, clients can select from a huge range of funds and individual company shares. HL have over 500 funds listed, including OEICs and unit trusts. You can also invest in thousands of individual company shares on the UK, US, European and Canadian markets.
What Are The Charges?
HL charges an annual platform fee of 0.45% for shares, ETFs and investment trusts.
For funds, the fee begins at 0.45% for the first £250,000, 0.25% for the next £750,000, and 0.1% for the next £1,000,000. There are no additional charges for any fund holdings over £2,000,000.
There are caps on maximum charges for different account types, e.g. a maximum £45 annual management charge on shares in a Stocks and Shares ISA. For more information about fees and charges, see the HL website.
Share dealing charges start at £11.95 per deal but reduce to as little as £5.95 based on the number of deals you made in the month before. This is set out in the table below.
Note that there is an added foreign exchange charge for overseas share deals, depending on deal size
Information and Advice
As well as dealing and portfolio management, Hargreaves Lansdown also offer investment information and advice.
For starters they have The Wealth Shortlist, a list of recommended funds researched and chosen by HL for their long-term potential. This can help investors narrow down their choice of funds from the vast number available on the platform.
HL also offer a service called Portfolio+. This is aimed at people who want to invest but prefer to leave the choice and management of investments to HL’s experts. You simply choose one of six ready-made portfolios that invest in a broad mix of assets across a range of countries and regions, giving lots of diversification (something regular readers will know I’m a big fan of).
Portfolio+ offers simplicity, performance potential and a low minimum investment of £1,000. Portfolios can be sold at any time free of charge (though of course they should only be bought as long-term investments). Once invested, portfolios are automatically rebalanced twice a year. No additional charges are levied for managing your portfolio. Not surprisingly, Portfolio+ is a popular choice among HL investors.
Personalized advice from professional financial advisers is also available via the HL platform. There is (of course) a charge for this, but the initial consultation is free. Again, see the HL website for more information.
For those brand new to investing, a very useful resource is HL’s Investing – As Easy As 1, 2, 3 page. This takes you through the basics of why, when and how to invest.
What Are the Pros and Cons of Hargreaves Lansdown?
Pros
Large, well-established platform with huge (over 1.5 million) client base
Wide range of accounts to meet all needs
Well-designed, user-friendly website
Mobile app also available
No dealing fees when buying or selling funds
Highly rated UK-based customer service team
Information, advice and ready-made portfolios available
Cons
Share dealing fees of up to £11.95 per deal are above average
Management charges for larger (over £50,000) portfolios are less competitive
What Do Users Think?
On the popular independent TrustPilot website, HL has an average rating of 4.2 (‘Great’) at the time of writing, with 55% of users awarding them a maximum five stars rating. That is on a par with the other leading UK investment platforms.
Positive comments emphasize the high-quality customer service, the well-designed website, and the range of investment products available. There are fewer negative comments, but some of these concern HL’s above-average charges for some services. There are also a few complaints regarding technical issues with the website.
Hargreaves Lansdown has also received various industry awards, including ‘Best Share Dealing Platform 2021’ (UK Investor Magazine) and ‘Best Digital ISA’ (Boring Money 2021 Best Buys).
Closing Thoughts
If you are planning to start investing (or switch from your current platform) Hargreaves Lansdown undoubtedly has a lot going for it. It’s a popular, well-established platform with a wide range of accounts and services on offer. Their charges are generally competitive, and (as I can testify myself) the UK-based customer service is first rate.
Their Portfolio+ service is an attractive option for novice investors – but equally, if you are happy to pick your own shares and funds, HL has all the info and tools you need.
If you are planning to regularly buy and sell individual shares, Hargreaves Lansdown is on the pricey side. In that case a low-cost share-dealing service such as eToro might be better for you. They offer commission-free trading on shares and charge no monthly account fee. That makes them ideal for short-term traders and investors looking to build a portfolio of shares cheaply. Of course, this is a much riskier approach to investing, and not recommended for those new to the field.
As ever, if you have any comments or questions about this blog post, please do leave them below.
Disclaimer: I am not a qualified financial adviser and nothing in this blog post should be construed as personal financial advice. Everyone should do their own ‘due diligence’ before investing and seek professional advice if in any doubt how best to proceed. All investing carries a risk of loss.
Note also that this post includes affiliate links. If you click through and perform a qualifying transaction, I may receive a commission for introducing you. This will not affect the product or service you receive or the terms you are offered.
If you enjoyed this post, please link to it on your own blog or social media:
I’ll begin as usual with my Nutmeg Stocks and Shares ISA, as I know many of you like to hear what is happening with this.
As the screenshot below shows, my main portfolio is currently valued at £20,870. Last month it stood at £22,275, so that is a fall of £1,405.
Apart from my main portfolio, I also have a second, smaller pot using Nutmeg’s Smart Alpha option. This is now worth £2,682 compared with £2,837 last month, a net fall of £155. Here is a screen capture showing performance over the last year.
There is no denying 2022 has got off to a disappointing start as far as these investments are concerned. Overall, they take the value of my portfolio back to where it was at the end of June 2021.
It is though worth noting that since I started investing with Nutmeg in 2016 I have still enjoyed a total return on my main portfolio of 45.8% (or 64.81% time-weighted). I should also mention that I have selected quite a high risk level for both my Nutmeg accounts (9/10 for the main one and 5/5 for Smart Alpha). This has served me well generally, but I’m sure investors who selected lower risk levels will have seen smaller falls this month.
Of course, it’s not just Nutmeg investors who have had a bad month. Equities generally have taken a tumble in the last few weeks. Commentators have varying opinions about this, but two reasons are typically mentioned: (1) the rising tensions (and threat of war) in Ukraine; and (2) rising inflation rates allied with the removal of monetary stimulus measures as we come out of the pandemic. Obviously nobody knows for sure which way things will go, but this recent post from the Nutmeg blog sets out some grounds for cautious optimism over the year ahead.
Personally I intend to take advantage of the current dip by topping up my Nutmeg investment while asset values are depressed. I plan to add to my Smart Alpha holding, as overall this has been doing slightly better than my main portfolio. I’m also conscious that the end of the 2021/22 tax year will soon be upon us. That means the end of the current year’s ISA allowance, so it really is a case of use it or lose it!
The above is just my view, of course, and should not be construed as personal financial advice for anyone else to follow.
You can read my full Nutmeg review here (including a special offer at the end for PAS readers). If you are still looking for a home for your 2021/22 ISA allowance, based on my experience over the last six years, they are certainly worth considering.
As regular readers will know, this year I am using Assetz Exchange for my IFISA. This is a P2P property investment platform that focuses on lower-risk properties (e.g. sheltered housing on long leases). I put an initial £100 into this in mid-February 2021 and another £400 in April. Everything went well, so in June 2021 I added another £500, bringing my total investment on the platform up to £1,000.
Since I opened my account, my Assetz Exchange portfolio has generated £37.18 in revenue from rental and £91.19 in capital growth, for a total return of £128.37. That’s an increase of £35.99 on last month alone, and does I guess illustrate the potential value of P2P property investment for diversifying your portfolio when equity markets are volatile.
I won’t bother publishing a statement on this occasion as it’s not massively different from last time. The bottom line is that I (still) have investments in 21 different projects with them and all are performing as expected, generating income and – in every case now – showing a profit on capital. So I am very happy with how this investment has been doing.
To control risk with all my property crowdfunding investments nowadays, I invest relatively modest amounts in individual projects. This is a particular attraction of AE as far as i am concerned. You can actually invest from as little as 80p per property if you really want to proceed cautiously.
Another property platform I have investments with is Kuflink. They have been doing well recently, with new projects launching almost every day. I currently have just over £2,000 invested with them, quite a large proportion of which comes from reinvested profits. To date I have never lost any money with Kuflink, though some loan terms have been extended once or twice. On the plus side, when this happens additional interest is paid for the period in question.
Several of my Kuflink investments reached maturity in the last few weeks and I reinvested the capital released. Here is one of the new projects I invested in, a loan to convert a disused medical centre in Five Ways, Birmingham into residential accommodation. It looked a solid investment, and I also liked the fact that it was redeveloping a derelict building in Birmingham, a city where I lived for around twenty years.
My loans with Kuflink pay annual interest rates of 6 to 7.5 percent. As mentioned above, these days I invest no more than around £150 per loan (and often less). That is not because of any issues with Kuflink but more to do with losses of larger amounts on other P2P property platforms in the past. My days of putting four-figure sums into any single property investment are behind me now!
Nowadays I mainly opt to reinvest the monthly repayments I receive from Kuflink, which has the effect of boosting the percentage rate of return on the projects in question
You can read my full Kuflink review here. They offer a variety of investment options, including a tax-free IFISA paying up to 7% interest per year with built-in automatic diversification. Alternatively you can now build your own IFISA, with most loans on the platform (including the one shown above) being IFISA-eligible.
I’d also particularly draw your attention to Kuflink’s revised and more generous cashback offer for new investors [affiliate link]. They are now paying cashback on new investments from as little as £500 (it used to be £1,000). And if you are looking to invest larger amounts, you can earn up to a maximum of £4,000 in cashback. That is one of the best cashback offers I have seen anywhere (though admittedly you will need to invest £100,000 or more to receive that!).
I also recently published a blog post about another P2P property investment platform called BLEND. Like Kuflink, they offer the opportunity to invest in secured loans to experienced property developers. They offer (on average) somewhat higher rates of return than Kuflink, though arguably with a little more risk. As well as my blog post about BLEND, you can also check out what they have to offer on their website [affiliate link].
Next up, I wanted to give another plug for an excellent low-key sideline-earning opportunity I have mentioned previously on Pounds and Sense. This opportunity is based on matched betting, a sideline I have pursued for several years myself. Several PAS readers (including my sister Annie!) have signed up for this and are now enjoying a tax-free, hassle-free sideline income from it 🙂
I have been asked not to divulge too many details about this publicly, for good reasons I will explain privately to anyone who may be interested (and no, it’s not illegal!). It doesn’t require any financial outlay and is risk-free and entirely hands-off (once you have set up your account). No knowledge of betting is required and you don’t have to place any bets yourself (this is all done by the company’s clever software). You just have to set up a separate bank account for bets to go through, but running the account is entirely financed by the company.
The company has changed its terms somewhat for new members. You now get a larger £100 initial reward payment once your account is up and running, and then £25 every month you remain a member. I think this is a good move personally, as setting up the account does involve a little work on your part (though it’s certainly not like going down the mines). So the £100 in effect compensates you for your time, and once it’s done you continue to get £25 a month for no effort at all.
The company is constantly developing its offering, partly in response to feedback from PAS readers. They recently launched a new mobile-friendly website to make it even easier for new members to sign up (once you’re up and running you shouldn’t need to use the website at all). They also recently incorporated an Open Banking app so that members don’t have to provide their online banking info to the company, as some people were concerned about this.
Please note that this opportunity is only open to honest, trustworthy people who haven’t done matched betting before and have no more than two accounts already with online bookmakers. For more information (and to receive a no-obligation invitation) drop me a line including your email address via my Contact Me page. And yes, I will receive a reward for introducing you, but this will not affect the service or the rewards you receive.
In the interests of full transparency, I should say that if you do matched betting yourself, you may be able to make more money than that being offered by the company. However, you will have to research the techniques in detail, place all bets yourself, and probably subscribe to a matched betting advisory service such as Profit Accumulator [affiliate link]. This opportunity is really for those who want an easy way to make some extra money without the hassle (or expense) of learning/applying matched-betting methods themselves.
Moving on, I have another article on the always-excellent Mouthy Money website. Coincidentally, this is about my experiences with P2P property investment over the last few years, both good and not-so-good. Do check it out! 🙂
I was also quoted by Jackie Annett of the Express newspaper in this article about working after retirement. It’s a short but interesting read, especially if you’re coming up to retirement (or already there) yourself.
That’s more than enough for now, so I’ll sign off till next time. I hope you are keeping safe and well, and (if you live in England especially) are enjoying the more relaxed Covid restrictions that now apply. Here’s hoping that normal life across the whole of the UK will be able to resume very soon!
Disclaimer: I am not a qualified financial adviser and nothing in this blog post should be construed as personal financial advice. Everyone should do their own ‘due diligence’ before investing and seek professional advice if in any doubt how best to proceed. All investing carries a risk of loss.
Note also that this post includes affiliate links (disclosed). If you click through and perform a qualifying transaction, I may receive a commission for introducing you. This will not affect the product or service you receive or the terms you are offered.
If you enjoyed this post, please link to it on your own blog or social media:
Today I have a guest post for you from my friends at Broadway Autocentres. As specialists in this field, they know exactly what it takes to get the most out of your car tyres.
Over to the experts, then…
When it comes to driving your own car, all the costs seem to mount up. If you’re not saving for the next service, you’re putting money aside for the MOT. And just when that is out of the way, you realise that you don’t know how old your tyres are or when they will need to be replaced.
There is no way to have your car use less fuel or oil, and skipping services is a bad idea – but if you can reduce the wear and tear on the vehicle whenever possible, so much the better for your purse or wallet.
Tyres are one of the biggest expenses you will face, so let us look at five ways to get the most out of your tyres before you bow to fate and replace them!
Table of Contents
Buy Them in Twos
Buying a set of four tyres can seem impossible with a tight budget, so why not replace your tyres in twos instead? Depending on whether your car is front or back wheel drive, either the front set or back set will take the most punishment. It is the most worn tyres that should be replaced, with the more lightly worn set moving to take their place and the new tyres going where they will receive less wear. This system may seem inconsistent, but it will ensure that you stay safe while on the road without needing to spend a lot of money all at once.
Drive Sensibly
Drive according to the Highway Code at all times and resist the temptation to put your car through its paces. Maintain a safe speed, avoid rough or unsurfaced roads, and increase and decrease speed slowly whenever possible. All of these will help to keep your tyres in good condition for longer, so you can keep saving for their eventual replacements.
Buy the Best
While it may seem counter-intuitive, buying the best quality tyre you can afford is often more economical when taken over time. Budget tyres are sometimes made with flaws that can weaken the tyres more quickly, or with inferior rubber that begins to crumble and break apart. Better quality tyres will last better – sometimes twice as long as budget tyres, thereby comparatively halving their cost to you. You can book your tyres in Buckinghamshire at Broadway Autocentres (01494 680914).
Regular Checks
Get into the habit of checking your tyres often, looking for early signs of damage or weakness. In many cases, prompt corrective action or a swift repair can keep the tyre in place for some time, giving you the chance to continue getting out and about without suddenly needing to spend money on a new set or pair of tyres.
Proper Inflation
Modern tyres – no matter whether budget or premium – are designed to be used within a narrow recommended range of pressure, and will often perform poorly outside of this range. Keep your tyres inflated to within the range recommended by the manufacturer (this can be found online, sometimes on the tyre itself, or inside the car owner’s handbook) to ensure that not only do your tyres last as long as possible, but you are safer on the roads during this time. Correctly inflated tyres also aid fuel economy, saving you money that way as well.
Thanks again to my friends at Broadway Autocentres for their expert advice. As always, if you have any comments of questions about this post, please do leave them below.
This is a sponsored post.
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Today I am looking at P2P property investment platform Kuflink.
I have been investing with Kuflink for five years now, so this is a fully updated repost of my original review.
Table of Contents
What is Kuflink?
Kuflink is an online platform offering opportunities to invest in loans secured against property. These loans are typically made to developers who require short- to medium-term bridging finance, e.g. to complete a major property renovation project, before refinancing with a commercial mortgage.
Kuflink offer three types of investment, as follows:
Auto Invest and IFISAs both automatically invest your money across a number of loans and pay a fixed interest rate, typically between 7 and 9%. You can choose a 1-year, 2-year or 3-year term, and interest is paid annually (it is automatically reinvested at the end of each year with the two-year and three-year products). The Auto-Invest product is basically the same as the IFISA, but without the tax-free wrapper.
At one time only the Auto-Invest option was available for IFISAs, but nowadays you can choose your own investments if you prefer. The great majority of Self-Select loans on the Kuflink platform are IFISA-eligible. If you check out the Self-Select listings on the Kuflink website (see image below), this will tell you whether any particular loan is IFISA-eligible or not.
Individual Select-Invest loans pay interest rates varying between about 6 and 7.2%, depending largely on the LTV of the loan (loan to value, a measure of how secure the loan would be in the event of a default). The higher the LTV, the riskier the loan, and – other things being equal – the higher the interest rate paid in consequence. You can see a screen capture below of three Select-Invest loans available on the platform at the time of writing.
As a reasonably experienced P2P investor, I put my money into Select-Invest loans. These typically have a duration of six months to a year and (as mentioned above) pay interest from around 6 to 7.20 percent. That obviously isn’t as much as some P2P property platforms (e.g. BLEND), but I think it represents a fair balance between risk and reward. Kuflink also invest in every loan themselves up to 5% of the value of each loan – so, as the expression goes, they have skin in the game.
My Kuflink Review
I found signing up with Kuflink a quick and easy process. They do the obligatory money-laundering checks, but in my case anyway this was all done electronically behind the scenes. I uploaded a copy of my passport and was approved almost immediately. I started by depositing £500, but you can start with as little as £100 if you like.
Initially I put my money into a 12-month loan paying 7% annual interest. One good feature I didn’t grasp initially is that with Select-Invest loans interest is paid monthly. So once a month I receive interest payments on all the loans I am currently invested in. This is paid into a wallet, from which you can either withdraw to your bank account or reinvest.
Kuflink recently introduced an option to have monthly loan repayments automatically reinvested rather than paid into your account as cash. This effectively boosts your interest rate by the power of compounding, as you then receive interest on the reinvested payments as well. Currently this option is available for most, but not all, loans on the platform. You can see which of your loans compounding is available for via your Kuflink dashboard.
I have continued to invest in Kuflink, and have also reinvested in new loans when the original ones were paid off. Another good feature is that money invested in a loan but not yet released to the borrower attracts interest which is paid as cashback once the loan has gone live.
There have been no defaults so far on any of my loans, and Kuflink say on their website that to date nobody has lost a penny on their platform. I have experienced short delays with loans being repaid, but in such cases you continue to earn interest, of course.
Secondary Market
A new feature on Kuflink I like is the Marketplace (secondary market). Here you can buy loan parts from other investors who want to sell up early. You can also put up for sale any (or all) of your own loan parts.
The number of loan parts listed in the Marketplace went up in the early months of the pandemic, as many investors understandably wanted (or needed) to access their cash. This created short-term buying opportunities which I was happy to take advantage of. Loan parts offered via the Marketplace typically have only a few months to run, so you can expect to get your capital back quickly (and can then reinvest it if you wish). Only loans in good standing with monthly repayments up to date may be listed on the Marketplace, so that offers some reassurance against default – though of course it is by no means a guarantee.
In recent months the number of loan parts listed on the Marketplace has reduced considerably. And those that are tend to be snapped up quickly. As a would-be investor this is slightly disappointing, but it does indicate that people are keen to take advantage of the opportunities on offer. It also means that if you want (or need) to exit a loan early, accessing your money should be a quick and easy process.
Pros and Cons
Based on my experiences, here is my list of pros and cons for the Kuflink investment platform.
Pros
1. Easy sign-up process.
2. Low minimum investment.
3. All loans secured against property.
4. Choice of investments and approaches.
5. Manual and auto-invest options.
6. Kuflink invest in all loans themselves, so they have a strong incentive to ensure they are safe and secure.
7. They also cover the first 5% of losses on any loan before investors are affected (although this has never happened yet).
8. Money invested but not yet released to the borrower attracts interest which is paid as cashback once the loan has gone live.
9. In-depth information is provided on the website about all loans, so you can see exactly how your money will be used (and by whom).
10. There have been (according to Kuflink) no investor losses to date.
11. Customer service (in my experience anyway) is fast, friendly and helpful.
12. There is a 14-day cooling off period for new investors.
13. Marketplace (secondary market) for buying and selling loan parts.
14. No charges to investors lending on the primary market and only a 0.25% fee if you resell a loan part on the secondary market.
15. On most loans you can opt to reinvest monthly repayments to boost your net interest rate.
16. Tax-free IFISA option available.
Cons
1. Rates paid aren’t the highest in P2P lending.
2. Delays with some loans being repaid (although investors do earn extra interest if this happens).
3. No mobile app [UPDATE FEB 2023 – An app is now available.]
Conclusion
Overall, my experiences with Kuflink so far have been entirely positive and my investments have been generating the promised returns. I started cautiously with them, but have gradually built up the amount I have invested on the platform. Although – like all property P2P platforms – they were adversely affected by the pandemic, they appear to have come through it strongly, with new loans now being added almost daily.
As mentioned above, although Kuflink don’t pay the highest rates in P2P lending, I think the returns on offer are realistic and sustainable. The steady expansion of the platform seems to testify to this, as does the fact that they have received several industry awards. These include Best Alternative Business Funding Provider in the Business Moneyfacts Awards in both 2018 and 2019 and Best Service From an Alternative Funding Provider in 2020.
Kuflink are also highly rated on the independent TrustPilot website, with an average 4.6 out of 5 (‘Excellent’). At the time of writing 82% of reviewers award them the maximum five-star rating, which is among the highest figures I have seen for a financial services platform.
As with all P2P lending, your money does not enjoy the same level of protection as bank and building society accounts, which are covered (up to £85,000) by the Financial Services Compensation Scheme. Nonetheless, the rates of return on offer are significantly better than those from most financial institutions. And the fact that all loans are secured against bricks and mortar – and Kuflink themselves have cash invested in them – clearly offers some reassurance.
From my experience, Self-Select loans tend to fill up quickly. On the positive side, this shows investors have confidence in Kuflink and want to invest through the platform. On the minus side, it means there are typically no more than two or three new loans open for investment at any time.
Clearly, no-one should put all their spare cash into Kuflink (or any other P2P investment platform). Nonetheless, it is certainly worth considering as part of a diversified portfolio. Not only are the rates of return much higher than those offered by banks and building societies, they are relatively unaffected by ups and downs in the stock market. P2P loans aren’t a way of hedging your equity-based investments directly, but they do help spread the risk.
If you have any comments or questions about this review or Kuflink in general, as always, please do leave them below.
Disclosure: As stated above, I am an investor with Kuflink myself, and if you invest £500 or more via my link above I will receive a bonus for introducing you. Money is at risk. You should always do your own ‘due diligence’ before investing, and seek advice from a qualified financial adviser if in any doubt how best to proceed.
If you enjoyed this post, please link to it on your own blog or social media:
Today I’m spotlighting a new UK high-speed broadband service called Cuckoo.
They are aiming to shake up the world of broadband internet with great-value prices, first-rate customer service, and a social conscience too 🙂
Cuckoo currently have three different customer offers based on speed. Briefly they are as follows:
Eggceptional (1 Gb) – £54.99 a month
Really Fast (115 Mb) – £39.99 a month
Fast (80 Mb) – £29.99 a month
You can see more detailed information from the Cuckoo website in the screen capture below.
Signing up is straightforward via the website and takes just a couple of minutes. Your router will then arrive in the post with full instructions for setting it up. If an engineer is needed (usually it isn’t) Cuckoo will arrange a convenient time for them to come. This is summed up in the graphic from the company website below.
As mentioned, Cuckoo is also a company with a social conscience. They take 1% of each bill and use it to help bring the Internet to places where it’s needed most. That includes conflict zones, natural disaster sites and developing communities. Customers get to choose which project they wish to to support under the Cuckoo Compass scheme.
Finally, Cuckoo aims to deliver top-notch customer service from their team of UK-based customer-support ‘Eggsperts’. Cuckoo have an impressive Trustpilot average rating of 4.6 (‘Excellent’), with 76% of people at the time of writing giving them a full five stars.
For much more information, please check out the Cuckoo website. And of course, if you have any comments or questions about this post, please feel free to leave them below as usual.
Disclosure: This sponsored post includes affiliate links. If you click through and end up making a purchase, I may receive a commission for introducing you. This will not affect the price you pay or the product or service you receive.
If you enjoyed this post, please link to it on your own blog or social media:
Today I am spotlighting BLEND, a peer-to-peer property platform that lends to established businesses (mostly experienced property developers). BLEND’s loan-based crowdfunding platform was founded by a team of former investment bankers with substantial experience in real estate and finance.
Table of Contents
What Does BLEND Offer?
BLEND offers individuals the chance to invest in loans secured against property. They specialize in loans in geographical areas that banks and other lending platforms typically pay less attention to, e.g. Northern Ireland, though they fund projects across the whole of the UK. Loans are typically for small developments or building renovation/conversion projects. Some examples are shown in the screen capture below.
As mentioned above, all loans are secured against property. The LTV (loan-to-value ratio) is usually quite low, giving greater security for investors. Interest rates on offer range from 7 to 12 percent.
BLEND has some similarities with Kuflink, which I reviewed in this blog post a while ago (and invest in myself). Both offer the opportunity to invest in secured loans. Kuflink typically offers lower interest rates, however, between 5 and 7 percent. The risk level with Kuflink loans is (arguably) lower, but it should be said that BLEND so far has an unblemished record, with no loans in arrears or default.
The minimum investment on BLEND is £1,000, which means it is really aimed at high net worth and professional investors. It’s also worth noting that only a small number of new loans tends to be available at any given time and they typically sell out very quickly.
Using the AutoLend feature is recommended to ensure that you don’t miss out when a new loan comes on to the market.
Secondary Market
One drawback with any type of property investment is that it’s not as liquid as (say) equity-based investments. BLEND does offer a way around this with its secondary market, however.
Lenders who wish to liquidate early can sell their loan parts on the secondary market. Note that finding a buyer on the secondary market may take time and there is always a risk of no-one wanting to buy your loan part. You can start selling a loan in multiples of £1,000 on the secondary market as soon as funds have been released to the borrower.
Unlike the primary market, as a lender you will be charged a secondary market fee of 0.60% (or £6 for every £1,000 of capital) on capital outstanding. BLEND only charge this upon the successful resale of the loan portion you have listed in the secondary market. The secondary market is free for buyers.
Pros and Cons
A full list of Pros and Cons for BLEND is shown below.
Pros
1. Easy sign-up process
2. Well designed, user-friendly website
3. All loans secured against property
4. Low LTV ratios for added security
5. Manual and auto-invest options
6. In-depth info provided on the website about loans, so you can see exactly how your money will be used (and by whom)
7. No investor losses to date
8. Marketplace (secondary market) for buying and selling loan parts
9. No charges to investors lending on the primary market and only a 0.6% fee if you resell a loan part on the secondary market
10. Rates of return of up to 12% are at the upper end for P2P lending
11. Can invest via a SIPP or SSAS (private pension scheme)
Cons
1. Minimum investment of £1,000
2. Limited supply of new loans to invest in
3. No tax-free IFISA option
Final Thoughts
With a minimum investment of £1,000 (per project), BLEND obviously won’t be suitable for everyone. But if you have that sort of money available, the promised returns of up to 12 percent are undoubtedly enticing.
I like the fact that BLEND are very selective in the projects they back, even if that does mean the flow of new opportunities is limited. It’s also good that they perform in-depth ‘due diligence’ on every loan and publish full details about this on the website, including independent valuations. This means investors know exactly what the potential risks and rewards of a project are.
The absence of any charges to investors (apart from on the secondary market) is another big plus. And the presence of a secondary market offers the opportunity to exit loans early if your circumstances change (though, as noted above, you aren’t guaranteed to find a buyer).
BLEND is probably at the riskier end of the P2P property spectrum, but in my opinion the returns on offer fairly reflect this. Risks are also mitigated by generally low LTV ratios and the detailed research mentioned above. The fact that no loan has so far gone into default or even into arrears is impressive, though there is of course no guarantee this couldn’t happen in future. It does offer some reassurance though.
Finally, BLEND has an average Trustpilot rating of 4.6 (‘Excellent’), with 95% of people awarding them a maximum five stars rating. This is among the highest ratings I have seen for an investment platform on Trustpilot.
As always, if you have any questions or comments about this post or P2P property investment more generally, please do leave them below.
Disclaimer: I am not a qualified financial adviser and nothing in the article above should be construed as personal financial advice. You should always do your own ‘due diligence’ before investing and seek professional advice if in any doubt how best to proceed. All investing carries a risk of loss.
Please note also that this post includes affiliate links. If you click through and perform a qualifying transaction, I may receive a commission for introducing you. This will not affect in any way the terms you are offered or the product/service you receive.
If you enjoyed this post, please link to it on your own blog or social media:
As mentioned, 
