Selina Finance has implemented a series of updates to enhance its lending process, aiming to increase accessibility and flexibility for borrowers and brokers.
- The minimum loan size has been reduced to £10,000, benefiting those needing funds for home improvements or debt consolidation.
- Selina’s updated credit assessment now disregards certain past credit issues, making it easier for applicants to qualify.
- Changes in affordability criteria include a simplified declaration of outgoings and a raised debt-to-income threshold.
- These updates reflect Selina Finance’s commitment to a more inclusive and streamlined lending process.
Selina Finance, in a strategic move to improve its lending process, has revised its policy to increase both accessibility and flexibility for borrowers and brokers alike. The primary change involves reducing the minimum loan size to £10,000 across all products, thus accommodating borrowers seeking funds for home improvements, debt consolidation, or meeting short-term financial needs.
In terms of credit assessment, Selina has adopted a more lenient approach, disregarding previously resolved County Court Judgements (CCJs) and defaults under £500 from their evaluations. Additionally, they now consider applications with consolidated CCJ or default balances exceeding £5,000. This is part of a new set of criteria designed to simplify the process for clients with specific credit considerations, establishing Status 0 and Status 1 credit profiles, which allow varying recent entries.
Selina’s update extends to its affordability criteria, streamlining the process by requiring brokers and clients to only declare essential outgoings such as council tax, childcare, service charges, and ground rent. In a forward-thinking adjustment, the debt-to-income threshold has been increased to 55%, removing certain buffers previously included in affordability calculations.
Stacey Woods, head of intermediaries at Selina Finance, commented on these significant updates: “Our latest updates are designed to give brokers greater clarity and flexibility while streamlining access to our products for their clients. By refining both our credit and affordability criteria, we’re able to offer more tailored solutions for borrowers who may have previously faced obstacles.”
Woods emphasised Selina’s ambition to simplify and accelerate the lending process while maintaining inclusivity: “We understand that every customer’s situation is unique, and these updates reflect our commitment to making the lending process smoother, faster, and more inclusive. They are part of our broader strategy to support brokers and borrowers, building on the momentum of recent funding expansions and digital enhancements.”
These policy updates by Selina Finance mark a significant move toward more accessible and flexible lending solutions.
