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).
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.
The Selina Advance HELOC offers funds from £25,000 up to £1 million, depending on the equity you have built up in your security property, over terms from 5 to 30 years.
After the 5 year flexible period, if you have any outstanding balance, it turns into a typical loan that you simply pay back until the end of the term. If you wish, you can pay back more at any point in time, without fees or penalties.
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drawdown funds up to your credit limit in the first 5 years and you will only ever pay interest on the amount you've withdrawn.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.
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 5.45%. 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: 4.92% (covered period: 01/07/2021-30/06/2022)*.
This means at least 51% of our customers get a Selina Advance HELOC at this 4.92% 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 5.45% for 5 years and then our variable rate of 5.20% for the remaining term would result in 60 monthly payments of £311.63 and 240 monthly payments of £305.26. The total cost after 25 years is £90,965.12, which includes £40,965.12 of interest and a £995 product fee added to the balance.
Yes. A one off £995 product fee applies to the Selina Advance HELOC.
You have the option to either pay it up front or add it to the balance of your facility and pay it back as part of your monthly repayments. This product fee is included in the APRC.
There are no hidden costs, recurring fees or early repayment charges (ERCs). In most cases, there are no property valuation costs unless we need you to commission a RICS valuation (in-person valuation) instead of an AVM (automated valuation model).
Yes. We want to offer you maximum flexibility, which is why we don’t charge you for making early repayments. Whether you want to repay in part or in full, during or after the 5 year flexible period, the choice is yours and there are never any extra costs.
Repayments are made monthly by direct debit and cover both capital and interest.
Yes. You can always pay more than your monthly repayment without incurring any penalties. Those adjustments will change your monthly repayment amount but not the duration of your term, unless you repay in full.
The Selina Advance HELOC is specifically designed for homeowners.
To be eligible to the Selina Advance HELOC, you will need to be on the title deeds of the security property title and:
£22,500 per year for individual applications
£30,000 per year for joint applications
To be eligible to the Selina Advance HELOC, your security property needs to:
Your security property can be your main or secondary residence.
We use an automated valuation model (AVM). By asking you a few questions, we will be able to provide an accurate valuation. This service is completely free of charge.
Occasionally, an AVM is not able to provide a valuation of your property in which case we may need you to commission a RICS valuation for which there will be a small cost.
We do not lend to customers who have a poor credit history, or had any of the following issues:
A hard credit check is only conducted once your full application is submitted.
1 - Get an instant quote in less than 2 minutes. We will perform a soft credit check (without any impact on your credit score).
2 - You will then have the opportunity to continue and submit your application on our online portal. There, we will ask for further details about you, your co-applicant (if applicable), the security property, your credit commitments and household expenditure. This will take about 30 minutes to complete.
3 - Your personal advisor will contact you to discuss your application and make a product recommendation, free of charge. They will also collect any required documentation from you and answer any remaining questions.
4 - Our underwriters will review your application and make a decision. All being well, we will then provide you with an offer and a legal charge. Once these are signed, we can release the funds.
During the application process, we will ask you to complete an identity verification check requiring an ID/Passport and a proof of address. You will also need to upload a proof of your income and bank statements.
To get more information about the Selina Advance HELOC, you can visit our page or email us at hello@selinafinance.co.uk.
If you've already submitted an inquiry or if your application is in progress, you can contact your advisor via email or call on 020 3608 5788.
If you would prefer to send something by post, please see our address below:
Selina Finance
14 Hanway Place
London W1T 1HD
Customer service is important to us. If you have a complaint about anything, we’d like to hear about it straight away, so we can try to put it right for you and improve our service.
Please visit our complaints page.
If you cannot make your regular payments, please contact us as early as possible. We will discuss your situation and agree the best way forward, given the challenges you are facing by exploring multiple options.
Our priority will always be to find the solution that is best suited to your circumstances.
