Frequently asked questions

General

Eligibility & Application Process

Secured Business Loan

Property Investment Credit Facility

Who are Selina Finance?
Founded in 2018 by Michael, Selina Finance is a London based digital lender. You can find out more about our mission and story on our About Us page.

 

How do I contact Selina Finance?
You can either call us on 020 8133 0157 or chat to us on our webchat in the bottom right of this screen.

 

Where does Selina Finance operate?
We operate and are able to offer financing options to customers and businesses across the United Kingdom

 

What is a Line of Credit?
A line of credit allows you to borrow money from us when you need it. It is a defined amount of money that we have agreed to lend to you for a certain period of time. You can draw on this line of credit, and pay it back, as an when you want.

 

What is the difference between a line of credit and a regular bank loan?
With a line of credit, you only have to pay interest on the amount that is currently outstanding. If you choose to draw nothing, then you will pay nothing. With a regular loan, a bank will deposit the entire amount into your bank account regardless of if you are going to use it straight away or not. You will then have to repay that entire amount over a set period of time. Basically a line of credit it far more flexible.

 

How much does Selina Finance charge?
We don’t charge any early repayment charges, no legal fees and no valuation fees. We also don’t charge an arrangement fee unless you are applying for our Property Investment Credit Facility. We only ever make a profit on the affordable interest rate that we have given you.

 

How does Selina Finance manage and handle my personal information and data?
Please visit our Privacy Policy for all information on how we manage and handle your personal information and data. You can also visit our Cookies Policy for further information.

How long does the application process take?
There are 3 steps to our application process:
1. Fill out our Get a Rate form. This takes less than 5 minutes. We will then review your application and if you are eligible, send you an indicative offer within 24 hours.

2. Submit supporting documents to confirm everything you have told us in step 1. If you have all the documents to hand, this can take as little as 10 minutes. Once we have received all of the required information we’ll go through our final checks and give you a loan offer.

3. The final step for you is to approve this loan offer. If you approve our offer, we can have the funds in your account within 5 business days.

 

What if I don’t know any property details?
Don’t worry. When filling out our Get a Rate form, you can provide us with an estimate of what you think your property is worth. We’ll then process your application based on this estimate and our own in-house knowledge. For step 2 however, we will need full details and proof of ownership of your property, so make sure you have a thorough look through your filing system.

 

I don’t have the required supporting documents, what should I do?
Again, don’t worry. When filling out our Get a Rate form, give us estimates of your financial income and any other information you are unsure of. We will however need all supporting documents listed in the application form in step 2 before we can issue you with an official loan offer.

 

I have a bad credit score; am I still eligible to apply?
Yes. We evaluate every case on an individual basis. While we always encourage our applicants to look at ways in which they can improve their credit score before applying, we will still consider you if you have a bad credit score.

 

I have a Country Court Judgement (CCJ); am I still eligible to apply?
Yes. We will accept applicants if they have a CCJ that is either less than £500 or is more than 6 years old.

What type of properties are eligible?
We are able to secure our line of credit against residential properties, Buy to Lets, Semi-Commercial and HMO properties.

We classify a semi-commercial as a property that is used at least 60% for residential.

We do not secure our line of credit against fully commercial properties.

 

How do you know how much my property is worth?
We asses the value of your property with the help of an Automatic Valuation Model that we have developed in-house. Our model considers various metrics such as public data records, historical price trends and the recent transaction of similar properties in your area.

We also have a full time valuation officer in-house who manages how we value properties throughout the UK. If we absolutely have to, then we will pay for the cost of an onsite valuation of your property.

 

Can I apply for multiple Lines of Credit?
Yes of course you can. However you need to make sure that none of your properties exceed 75% LTV (70% LTV for our Property Investment Credit Facility).

We also do not secure more than £400,000 (our maximum amount) against a single property.

 

What can I do with a Selina Finance Business Line of Credit?
Our Business Line of Credit must be exclusively used for business purposes. This can include (but is not limited to) business expansion, refinancing your business and covering working capital.

 

How can I calculate the maximum Line of Credit I might be eligible for?
We provide a Line of Credit at a maximum of 75% LTV (loan to value). That means the amount we lend to you as a Line of Credit plus any mortgage you might have on your property must not exceed 75% of the current market value of your property.

You can calculate this by using our online LTV calculator or by doing the following sums on paper:

Estimate what the current market value is of your home. Then calculate what 75% of this market value is. You will then need to subtract your total outstanding mortgage from this 75% figure. Whatever is left, we can potentially lend to you as a Line of Credit

 

Can I get a Line of Credit even if I don’t have an outstanding mortgage?
Unfortunately not. We can only offer a Business Line of Credit if you have an outstanding mortgage on your home. If you have a business partner, or an individual or is willing to submit a joint application with you, then we can also consider their property if they have a mortgage one it.

 

What is the maximum amount that Selina Finance offers as a Line of Credit?
We offer a minimum amount of £25,000 and a maximum amount of £400,000 for our Business Line of Credit.

 

How long can I have a Line of Credit for?
We can supply you with a Line of Credit for a minimum of 6 months and a maximum of 5 years.

 

What type of interest rate does Selina Finance offer?
Our Line of Credit comes with a variable interest rate. We offer rates starting from 4.95% APR annually, with our average interest rate being 6.95% APR annually.

 

What fees does Selina Finance charge for its Business Line of Credit?
We don’t charge any fees. Period. That means no early repayment charges, no setup fees, no legal fees and no valuation fees. All you will ever pay is the interest on the amount standing from your Line of Credit.

 

Can I make a repayment early without any penalty charges?
Yes. Our Line of Credit is incredibly flexible, meaning you can draw down, repay, and re-draw without paying any penalty charges.

 

How are the amounts paid out to me?
Once you have completed all the steps in our application process, and have accepted our offer, you have three options:

1. If you need the full funds in your bank account right away, then we will transfer the funds to you immediately.

2. If you only need a portion of the funds now, then just let us know how much you need and we’ll transfer that amount to you immediately. We’ll hold onto the rest until you need it.

3. If you don’t actually need any of the funds straight away, then we’ll hold onto the money until you inform us otherwise.

 

When do I need to make payments to Selina Finance?
Your first payment will be due exactly one month after we have paid out funds to your bank account.

If you have requested for the full Line of Credit to be transferred to your account, then you’ll need to make both an interest and capital repayment to us. If you have only taken out a portion of the funds available to you, then you will just need to make an interest payment to us.

 

What if I miss a payment?
If there are any problems with your payments then please let us know as soon as possible. The earlier we hear from you, the more flexible we can be. If you miss a payment without contacting us, then we’ll contact you directly to resolve any issues.

 

What type of homeowners are eligible?
We lend to individuals who solely own their property or who jointly own their property with another individual. The property you are looking to secure your Line of Credit against must have an outstanding mortgage on it to be eligible

What type of properties are eligible?
We are only able to secure our Credit Facility against a residential Buy-to-Let property. This Buy-to-Let property can be one that is already in the property investors portfolio, or is one that the property investor is looking to purchase.

We can secure our Credit Facility against one Buy-to-Let property or multiple Buy-to-Let properties.

 

Do I need a real estate business to be eligible for Selina Finance’s Property Investment Credit Facility?
No you don’t. However, your income from your real-estate activity must represent a significant part of your total income. We classify this as an individual having a minimum property portfolio of at least 3 Buy-to-Let properties.

 

How do you know how much my property is worth?

We asses the value of your property with the help of an Automatic Valuation Model that we have developed in-house. Our model considers various metrics such as public data records, historical price trends and the recent transaction of similar properties in your area.

We also have a full time valuation officer in-house who manages how we value properties throughout the UK. If we absolutely have to, then we will pay for the cost of an onsite valuation of your property.

 

Can I apply for multiple Credit Facilities?

Yes of course you can. Due to the complexity and uniqueness of each individual case we would advise you get in contact with our team on 020 3984 8578 to discuss your circumstances.

 

What can I do with a Property Investment Credit Facility?
Our Property Investment Credit Facility is meant solely for the purposes of property investment or development.

This can include (but is not limited to) plugging short-term debt, funding an extension, undergoing repairs and refurbishments, financing a deposit, purchasing a new property or purchasing an auction property.

 

How can I calculate the maximum Credit Facility I might be eligible for? 

The line of credit within your Credit Facility is provided at a maximum of 70% LTV (loan to value). That means the amount we lend to you as a Credit Facility plus any mortgage you might already have on your property must not exceed 70% of the current market value of your property.

You can calculate this by using our online LTV calculator or by doing the following sums on paper:

Estimate what the current market value is of your home. Then calculate what 70% of this market value is. You will then need to subtract your total outstanding mortgage from this 70% figure. Whatever is left, we can potentially lend to you as a Line of Credit.

If you are looking to secure your Credit Facility against multiple properties within your portfolio, then each one of those properties must not exceed 70% LTV.

 

Is Selina Finance’s Property Investment Credit Facility tax deductible?
We would advise you contact and consult with a tax advisor for all questions regarding tax deductibility.

 

Can I get a Credit Facility even If I don’t have an outstanding mortgage on my Buy-to-Let property?
Yes. You don’t need a have an outstanding mortgage to be eligible for our Property Investment Credit Facility. We can secure our Credit Facility on a first or second charge basis on a property (or multiple properties) that is already in your portfolio, or one that you are looking to purchase.

 

What is the maximum amount that Selina Finance offers for it’s Credit Facility?

We offer a maximum of £3,000,000 for our Property Investment Credit Facility.

 

How long can I have a Credit Facility for??
We can supply you with a Credit Facility for a minimum of 6 months, and a maximum of 3 years. At the end of this time period we can perform a re-assessment of your circumstances to extend your Credit Facility.

 

What type of interest rate does Selina Finance offer?
Our Credit Facility comes with a variable interest rate. We offer rates starting from o.66% APR per month (7.95% annually).

 

What fees does Selina Finance charge for its Property Investment Credit Facility?
We charge a one off 1% arrangement fee when setting up your Credit Facility. After this, you will pay no more fees. No early repayment charges, no legal fees, and no valuation fees.

 

Can I make an early repayment without any penalty charges?
Yes. Our Credit Facility is incredibly flexible, meaning you can draw an amount whenever you like, repay this back early, and re-draw again without any penalty charges.

 

How are the amounts paid out to me?

Once you have completed all the steps in our application process, and have accepted our offer, you have three options:

1. If you need the full funds in your bank account right away, then we will transfer the funds to you immediately.

2. If you only need a portion of the funds now, then just let us know how much you need and we’ll transfer that amount to you immediately. We’ll hold onto the rest until you need it.

3. If you don’t actually need any of the funds straight away, then we’ll hold onto the money until you inform us otherwise.

 

When is my payment due?

Your first payment will be due exactly one month after we have paid out funds to your bank account. You only ever pay interest on the amount outstanding from your Credit Facility, so if you have nothing outstanding, then you won’t pay anything.

 

What if I miss a payment?
If there are any problems with your payments then please let us know as soon as possible. The earlier we hear from you, the more flexible we can be. If you miss a payment without contacting us, then we’ll contact you directly to resolve any issues.