What is a HELOC?

HELOC - Home Equity Line of Credit

A Home Equity Line Of Credit (HELOC) is the popular form of finance for homeowners in the US, Canada and Australia. Selina is the first in the UK to offer a HELOC.

With a HELOC you can access the equity built in your home and unlock low rates only homeowners can get.

As a homeowner you are rewarded with lower rates compared to most other forms of unsecured personal credit (bank loans or credit cards) and greater flexibility than a remortgage.

Variable rates starting from 7.95% p.a.*
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Get the full HELOC guide to learn how to access the equity built inside your home.

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*Representative example: A HELOC of £100,000 drawn out in full over 25 years at a variable rate of 7.95% would result in 300 monthly payments of £757.83. The total cost after 25 years is £227,349 which includes £127,349 of interest and a £1,395 product fee added to the balance. APRC: 8.07%

House graphic showing portions of mortgage, equity and HELOC

How the Selina HELOC works

We want to offer maximum flexibility which is why with the Selina HELOC, you can draw, repay and redraw funds for 5 years. We don't charge you for making early repayments. Whether you want to repay in part of in full, during or after the flexible period, the choice is yours and it does not incur any extra costs. Those adjustments will change your monthly repayments amount but not the duration of your term, unless you repay in full and close your account.

 a HELOC works
HELOC balance
Can flex up and down as needed over the first 5 years
Interest savings
Interest is only paid on funds drawn down, not the full credit limit
Credit limit
Gradually reduces over the term (amortisation)

You do not pay interest on the funds that remain untouched (displayed in beige on the graph above). Unlike a term loan, you save the interest payments on the difference between credit limit and the balance.

Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

Four simple reasons a HELOC could be a great option

Unlock low rates for homeowners

Withdraw funds when needed over 5 years

Make large purchases affordable

Only pay interest on funds withdrawn

Flexible spending
Amount
Term
Interest paid
ERCs
HELOC
Withdraw as and when needed for up to 5 years
£25,000 - £1million
5 - 30 years
Only on withdrawn funds
None
Homeowner Loan
Get all your funds at once
£25,000 - £1million
5 - 30 years
On full amount
Depending*
Get all your funds at once
£1,000 - £25,000
1 - 5 years**
On full amount
Possible
Typical personal loan

Used responsibly, a Selina HELOC and a Selina Homeowner Loan can provide you with valuable advantages. However, as they are mortgages, you should consider the possible impact on your ability to secure additional borrowing against your home.

*ERCs can apply depending on the Homeowner Loan product that you get.

**Whilst from our research personal loans are generally offered over 1-5 years, some lenders do offer longer terms.

Unlock HELOC

Further reading to get you up to speed
What is a HELOC?
HELOC alternatives
How to release equity in your home

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1

Check your elegibilty in less than 2 minutes

Answer a few simple questions to quickly see if you're elegible for one of our loans.

2

Apply in less than 10 minutes

Apply online, one of our experts will help you during the process.

3

Get funded

If you're eligible we will help you get the funds easily and promptly.

Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

More than a loan

Home improvements, vehicles and so much more - the freedom to choose is yours.
Home improvements
Vehicle purchase
Buy to let

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Your questions, answered

Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.