Selina Finance has unveiled an updated version of its home equity line of credit (HELOC), introducing simpler affordability checks, more flexible drawdown options and improved remuneration for brokers in a move designed to broaden the use of HELOCs in the UK market.

The lender will now pay a flat 1.5% procuration fee upfront, with no minimum utilisation requirement. Clawback will only apply if the facility is fully closed within the first year, a shift intended to give advisers greater clarity and certainty.

Borrowers will be able to select flexible drawdown periods ranging from two to five years, with fixed credit limits in place during that time. Balances can be drawn, repaid and redrawn throughout the period.

“Crucially, affordability will be assessed only on the repayment period, which Selina said would simplify the application process.

As with its existing HELOC, there are no early repayment charges and interest is charged only on the balance drawn.

A webinar for intermediaries has been scheduled for 26 September, giving brokers the opportunity to review the product changes and put questions to Selina’s team directly.

Henry Vaughan, VP of growth at Selina Finance, said: “We’ve simplified and enhanced our HELOC product to make it easier for brokers to place and for customers to use.

“Whether it’s for home improvements, school fees, or property investment, this product gives borrowers the flexibility to access funds when they need them and repay without penalty.

“By combining the product refresh with in-person training and a webinar, we’re making sure brokers have the tools and knowledge to successfully use HELOCs in real cases.”

Selina Finance, a specialist second charge lender, positions its HELOC as a flexible credit facility enabling homeowners to raise capital for major purchases or investments, with repayment terms designed to reduce barriers to adoption.