Selina Finance launches new homeowner loan and minor adverse products

Selina Finance has enhanced its product offering, introducing its new Homeowner Loan and a Status 1 adverse plan alongside its existing flexible Home Equity Line of Credit (‘HELOC’) loan.

The Selina Homeowner Loan is a traditional secured loan and follows Selina’s straightforward lending criteria and its online, paperless application process. Loans are available on variable, 2-year or 5-year fixed rates, up to a maximum LTV of 85%. Variable rates start at Bank Base Rate + 5.00%, and fixed rates are available from 10.00%.

The Status 1 plan is available exclusively on the Selina Homeowner Loan, subject to a maximum loan of £250k and LTV of 75%. Status 1 allows one element of ‘adverse’ conduct across a range of categories, in particular, one missed payment on secured debt, two missed payments in 12 months on unsecured arrears, and one unsatisfied CCJ greater than £500 in the last 24 months. Variable rates start at Bank Base Rate + 6.50%, and fixed rates are available from 11.50%.

Selina Finance also offers its flexible HELOC loan on a variable rate, allowing flexible drawdowns and repayments within the first five years.

Selina is supporting this new roll-out with an enhanced service proposition after significantly restructuring its operational teams and increasing the headcount in its underwriting function. Numerous process improvements have been implemented, including an optimised workflow management system and pre-checks on new application packs. The lender is also investing heavily in automation across several critical areas.

Darvish Heshejin, VP of Growth at Selina Finance, says: “Selina has come a long way since we launched our regulated second charge lending proposition in 2021. Our partners have been instrumental in helping us understand what factors drive growth and success – service levels, policy, etc. The Homeowner Loan and Status 1 products offer our partners more optionality: where flexibility is needed, we have the HELOC option; where it’s not, the Homeowner Loan is ideal. Status 1 allows us to service borrowers who have experienced a recent minor blip in their credit conduct.

“We’ve also invested heavily in our operations – processes enhancement, workflow management, and increased headcount in underwriting. There’s a significant amount of tech and automation initiatives on our roadmap, which will further improve the broker and customer experience and cement our ability to provide consistently high levels of service and speed.”