Your home may be repossessed if you do not keep up repayments on your mortgage or any other loan secured on it.
Selina Finance homeowner loans review
Get access to the equity you have in your home as a line of credit with Selina's HELOC.
Overall representative example
If you borrow £43,000 over 16 years at a rate of 10.25% variable, you will pay 192 instalments of £505.18 per month and a total amount payable of £96,994.56. This includes the net loan, interest of £49,404.56, a broker fee of £3,995 and a lender fee of £595. The overall cost for comparison is 12.7% APRC variable.
If you borrow £43,000 over 16 years at a rate of 10.25% variable, you will pay 192 instalments of £505.18 per month and a total amount payable of £96,994.56. This includes the net loan, interest of £49,404.56, a broker fee of £3,995 and a lender fee of £595. The overall cost for comparison is 12.7% APRC variable.
Want to see which lenders can offer you a secured loan?
- Loans from £1,000 to £2,500,000
- See your quote before you apply
- Quote won’t affect your credit score
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
Pros
- Flexibility. If you need more funds than originally expected, you can simply borrow more from your line of credit.
- Early repayment options. You can repay your loan any time with no penalty fees.
- Interest only charged on the amount borrowed. No interest is charged on any funds left untouched.
- Larger borrowing sums. You can borrow more than you could with a personal loan or credit card.
Cons
- Secured loan. You’ll need to have equity in your house that you’re willing to use as security.
- Variable interest rate. This means your loan repayments could increase during the term.
- 2 monthly payments. You may have to pay for both your mortgage and your HELOC.
- Line of credit option may not suit everyone.
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.
Overview of Selina Finance homeowner loans
| Loan amounts | From £25,000 to £1,000,000 |
|---|---|
| Age | From 25 to 75 years |
| Term | From 5 to 25 years |
| Maximum LTV | Up to 85% |
| Representative APRC | Up to 18.5% |
| Lender fee | from £995 |
Frequently asked questions
We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.
More guides on Finder
-
Monzo introduces 3 new accounts: Extra, Perks and Max
Discover the features and fees you need to know about Monzo’s new paid-for current accounts: Extra, Perks and Max.
-
Gender bias in AI: Is there a problem with representation?
Investigating AI gender bias, we prompted ChatGPT to show images of people in high-powered roles and 99 out of 100 were white men.
-
Bitcoin halving 2024 takes place: What next?
Bitcoin halving 2024 happened on 19 April. We take a look at what’s next for Bitcoin’s price and the crypto market.
-
Women-led firms lag behind in startup funding despite equality drive
The gulf between the amounts received by men vs women from government-backed startup loans has widened, despite calls for more funding for women entrepreneurs.
-
Kroo vs Monzo: Which is the best?
We take a closer look at two of the digital banking brands leading the way in the UK. Compare Kroo and Monzo in our side by side guide.
-
How to buy Rubrik (RBRK) shares when it goes public
Everything we know about the Rubrik IPO, plus information on how to buy shares.
-
Problems in the growth pipeline? The female startup funding gap
Is the UK leaving £250 billion in growth on the table? Our free report shows how female entrepreneurs aren’t getting the same startup funding as men.
-
Robinhood statistics 2024: Users, revenue and growth
We look at the latest statistics on global trading app Robinhood, including the number of users, revenue and profitability.
-
Financial adviser vs coach: Who to talk to about your money
From financial advisers to accountants – if you need help with your personal finances, here’s who to talk to about what.
-
Best ways to invest £20k
Discover how you can build wealth by investing £20,000 and explore some of the top strategies for investing your money.