Selina Finance homeowner loans review

What is Selina Finance?

Selina Finance is a UK lender offering flexible secured lending products to consumers and businesses. Established in 2019, Selina offers a new way for UK homeowners to access some of the equity they have in their homes. Known as a home equity line of credit, or HELOC, the plan enables you to borrow against the equity in your home and receive the funds as a line of credit.

What types of loans does Selina Finance offer?

Selina Finance offers line of credit loans to businesses, property investors and homeowners. Through the Selina Advance HELOC, customers can access the equity they own in their home as a flexible line of credit for 5 years.

Customers can borrow against this line of credit as and when they need to during the 5-year term. However, instead of paying interest on the entire loan amount, borrowers only pay interest on the money they use. After the 5-year ‘flexible’ period, the HELOC will turn into a standard loan which means borrowers can no longer access their funds and must repay the loan, plus interest, before the end of the term. This repayment period can be as long as 30 years.

Repayments are flexible which means you can pay more on a monthly basis if you wish to. You can also pay off the loan early without incurring any penalty fees.

Key features of a Selina Advance HELOC

• Borrow from £25,000 to £1,000,000. You can borrow up to 85% of the equity you have in your home.
• Line of credit. Selina’s loans are offered as a line of credit for the first 5 years, meaning you only pay interest on the amount of equity you actually use.
• Early repayments. You can repay your loan at any time with no penalty or early repayment fees.
• Secured loan. Your loan is secured against the equity you own in your house, which means your house could be repossessed if you fail to make repayments.
• Product fee. When you apply for a HELOC, you will need to pay a product fee of £995. You can pay this upfront or add it to your monthly instalments (interest will be added).
• Repayment term of up to 30 years. You can select how long you wish to repay your loan in full.

Pros and cons of Selina Finance loans

Am I eligible for a Selina Finance homeowner loan?

In order to be eligible for a Selina Advance HELOC, you’ll need to meet the following criteria:

• Be a UK resident with at least 3 years’ address history
• Have a personal income of at least £22,500 per year for individual applications or £30,000 per year for joint applications
• Have a good credit score

On top of this, your security property (whether it’s your main or secondary residence) needs to:

• Have a minimum value of £100,000
• Be owned by you for a minimum of 6 months
• Be within a 85% maximum combined loan-to-value – if you have an outstanding mortgage, it, in combination with your loan amount, cannot exceed more than 85% of your property’s value.
• Have a minimum internal floor space of 35 square metres
• Not have more than 25% used for other purposes than residential

How can I apply?

You can apply for a Selina loan via its website. You’ll first need to apply for a personalised quote, which will only take 2 minutes and won’t affect your credit score. As part of your application, you’ll need to provide personal information and details of your property.

Customer reviews

Selina Advance currently has an “excellent” rating on review site Trustpilot, with a score of 4.8 out of 5 from 75 reviews. Customers comment on the professional customer service, clear process and flexible and innovative product.

Our verdict

If you’re looking to borrow funds to pay for home improvements or school fees, for instance, a Selina Advance HELOC could certainly be worth considering thanks to the flexibility it offers. However, remember that you will need to have sufficient equity in your home and, because it is a secured loan, it’s vital that you can afford your monthly repayments. If you are unable to, your home will be at risk.

Frequently asked questions

• Can I get a Selina loan if I have bad credit?

  Unfortunately, Selina Finance homeowner loans are only offered to those with good credit history, and you’re unlikely to be approved for a loan if you have a poor credit score.

• How much can I borrow?

  You can borrow up to a maximum of 75% or 85% of your home equity, depending on your loan option, with a maximum loan amount of £1,000,000.

• Is Selina Finance safe?

  Yes, Selina Finance is a registered UK company and authorised and regulated by the Financial Conduct Authority.

• What can I use a HELOC for?

  You can use a HELOC to help fund home renovations, a holiday, school fees, a new car, or almost anything you want (exceptions apply, such as gambling).