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What is a Selina Advance HELOC?

Selina Advance is the first Home Equity Line of Credit (HELOC) in the UK, introducing a flexible and affordable way to finance an upgrade to your home, car, holiday – or whatever you choose - sooner. 

A HELOC is a facility secured against the equity you have built up in your residential property (the “security property”). It is specifically designed to offer homeowners easy access to flexible and fair finance for larger purchases.

Selina Advance is a product of Selina Finance Limited which is a company regulated by the Financial Conduct Authority (FCA).

How can I use it?

With a Selina Advance HELOC, you can use your funds for many different purposes. 

You can choose to upgrade your home with a new kitchen or extension for your family to enjoy, put down a deposit on a second home or trade up your car to the next model. 

Many customers also choose to use their funds to pay for school fees or treat themselves to a special holiday.

You can also use the Selina Advance HELOC to consolidate existing loans. If you are thinking of consolidating debt, you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.

What rate and fees apply?

You can choose between a fixed and variable rate. Your personal advisor will assist you to ensure you get the right product for you. The Selina Advance HELOC minimum rate is 4.30%. However, to get an idea of how much borrowing will cost you, it is more sensible to look at the APRC.

The APRC is a percentage which represents the annual cost of borrowing against a security property and includes the interest rate and any other fees. It allows customers to compare different products available on the market. The overall cost for comparison of a Selina Advance HELOC is Representative APRC: 5.21%*.

This means at least 51% of our customers get a Selina Advance HELOC at this 5.21% APRC. Please note the APRC you receive will reflect your individual circumstances.

*Representative Example: A Selina Advance HELOC of £50,000 drawn out in full over 25 years at a fixed rate of 5.10% for 5 years and then our variable rate of 4.75% for the remaining term would result in 60 monthly payments of £301 and 240 monthly payments of £292. The total cost after 25 years is £88,140, which includes £37,239 interest and a £995 product fee added to the balance.

What advantages does it have over remortgaging?

There are several advantages over remortgaging. 

The first is that you never pay early repayment charges. Most banks charge for remortgaging and additional borrowing on your mortgage. The Selina Advance HELOC is simply a secured facility that sits alongside your mortgage without having any effect on its repayments. 

Another advantage of the Selina Advance HELOC is its flexibility. You can drawdown funds up to your credit limit in the first 5 years and you will only ever pay interest on the amount you've withdrawn. You can also overpay as and when you wish without ever incurring additional charges.

Used responsibly, a HELOC can provide you with valuable advantages. However, you should consider the possible impact on your ability to secure additional borrowing against your home. As this is a secured loan, if you fall into financial difficulties, your property could become repossessed and sold to repay the debts.