Selina Finance has introduced a five-year fixed-rate product with no early repayment charges on lending above 85% loan to value, alongside a series of criteria changes aimed at widening access for borrowers and giving brokers more flexibility on second-charge cases.
The specialist lender said the new product was designed to give borrowers greater rate certainty without removing the flexibility that is often needed when raising capital through a second-charge loan.
Alongside the launch, Selina has removed its debt-to-income calculation, in a move it said would simplify affordability assessments and help brokers place more cases.
The lender has also updated its Hometrack eligibility matrix following the recent introduction of automated valuations. It said the revised criteria should allow more cases to qualify for a no-valuation assessment, helping applications move through the process more quickly.
Further changes include an increase in the maximum borrower age to 80, with earned income now considered up to age 75. Previously, earned income was accepted up to age 70, while borrowers up to 75 were only considered where income came from pension or rental sources.
Selina has also reduced its minimum loan size to £5,000 across all products, from £10,000 previously, which it said would allow brokers to support a broader range of smaller borrowing needs.
Other policy changes include reducing the minimum self-employed age to 21, increasing the maximum loan amount to £300,000 for products between 75% and 85% LTV, and increasing the maximum loan amount to £500,000 for its standard home equity loan up to 75% LTV.
The lender has also reduced its stress test and said it will now consider exceptions on higher-LTV products.
Selina has widened the types of property it will accept by removing restrictions on Grade II-listed properties, new-build homes, timber-framed properties, flats above commercial premises, Scottish freehold flats and self-build homes.
Its income assessment criteria have also been revised in an effort to simplify evidence requirements across a range of employment types, including self-employed borrowers, partnership income, overtime, commission and zero-hour contracts.
Matthew Batte, head of intermediaries at Selina Finance, said: “Brokers are working in a market where speed, clarity and flexibility carry just as much weight as pricing. When cases become complicated or the process slows down, it creates unnecessary friction for both brokers and their clients.”
“That is why a big focus for us has been simplifying how cases move through the process. Removing our DTI calculation and introducing a five-year fixed product with no ERCs on higher loan-to-value (LTV) lending gives brokers more room to structure solutions that work for their clients, while still providing the certainty many borrowers are looking for.
“At the same time, expanding our Hometrack eligibility and increasing the availability of no-valuation products is another step towards making the journey faster and more predictable.
“Where cases meet the criteria, instant valuations remove delays and give brokers greater clarity much earlier in the application process.”
Calum Sayer, specialist mortgage adviser at Truffle Specialist Finance, added: “The update to Selina’s DTI calculation has already made a meaningful difference to the cases we can place. In one recent example, we have clients looking to raise £145,646 for debt consolidation, which would reduce their monthly outgoings by £3,445.67.
“Under the previous criteria, the case failed the affordability assessment, but following the update we are now able to proceed, which will make a significant difference to the clients’ financial position.
“More broadly, Selina’s latest criteria enhancements represent a real step forward for both brokers and borrowers. Stronger affordability, wider property and income acceptance, and greater flexibility – including the five-year fixed option with no ERCs and the increased maximum borrower age – mean we can support more customers and progress more cases.”
