Second lender Selina Finance has launched a five-year solution with no early repayment fees.
The lender, which offers home equity lines of credit (HELOCs) and secured loans for homeowners, said the new solution will provide borrowers with interest rate certainty while maintaining the flexibility often needed when raising capital through a second load loan.
Selina has also removed the debt-to-income (DTI) calculation, which is expected to simplify affordability assessments and help agents place more business successfully.
The lender has also increased the maximum age of the borrower to 80 years, with earned income now considered up to 75 years.
Previously, the maximum age for earned income was 70, while borrowers up to age 75 were only considered if the income came from pension or rental sources.
Selina has also reduced the minimum loan amount across all products to £5,000, down from the previous minimum of £10,000, a change designed to enable brokers to support a wider range of smaller borrowing needs.
Several additional policy improvements have also been introduced, including:
- Minimum age for self-employment reduced to 21 years
- The maximum loan amount has been increased to £300,000 for products with an LTV between 75% and 85%
- The maximum loan amount has been increased to £500,000 for the standard mortgage loan up to 75% LTV
- Stress test reduced to support better affordability outcomes
- Exceptions are now being considered for higher LTV products
Selina has also expanded the types of properties she considers, removing restrictions on:
- Grade II listed properties
- New construction homes
- Wooden houses
- Apartments above business premises
- Scottish apartments on private land
- Self-build properties
The income assessment criteria have also been updated to simplify evidence requirements for a range of types of work, including self-employed borrowers, partnership income, overtime, commissions and zero-hours contracts.
Matthew Batte, head of intermediaries at Selina Finance, said: “Brokers operate in a market where speed, clarity and flexibility matter as much as pricing. When things get complicated or the process slows down, it creates unnecessary friction for both brokers and their clients.”
“That’s why we’ve put a lot of focus on simplifying the way things move through the process. Removing our DTI calculation and introducing a five-year fixed product without ERCs on higher loan-to-value ratio loans gives brokers more room to structure solutions that work for their clients, while still providing the certainty that many borrowers are looking for.”