Selina Finance Expands Lending Criteria to Support More Borrowers
As a mortgage broker, I’ve seen firsthand the challenges that borrowers face when trying to secure a loan. Whether it’s a complex income situation or a history of adverse credit, it can be tough to find a lender that’s willing to take a chance. That’s why I was excited to hear about the recent changes to Selina Finance’s lending criteria.
More Flexible Income Calculations
One of the most significant changes is the way that Selina Finance calculates income. The lender will now consider up to 100% of bonus, commission, or overtime income, provided that regular payments can be proven. This is a big deal for borrowers who have irregular income or who are self-employed. It’s also a nod to the reality of modern work, where more and more people are working on a freelance or contract basis.
In addition to this change, Selina Finance has also reduced the minimum time in a current role to just one month. This is a huge win for borrowers who have recently changed jobs or who are looking to refinance their existing mortgage.
Higher Loan-to-Income Ratios
Selina Finance has also increased the maximum loan-to-income (LTI) ratio to 6.5x income for its Status 0 plan. This means that borrowers can now secure larger loans, even if they have a lower income.
Support for Borrowers with Adverse Credit
Finally, Selina Finance has broadened its criteria to support borrowers with adverse credit. The lender will now consider applicants with up to two missed payments across multiple unsecured items of credit, and will ignore conduct on any unsecured item of credit if it’s being consolidated or brought up to date.
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This is a significant change, and one that could make a big difference for borrowers who have struggled with debt in the past. By taking a more nuanced view of credit history, Selina Finance is acknowledging that mistakes can happen to anyone, and that everyone deserves a second chance.
What Does This Mean for Borrowers?
So what do these changes mean for borrowers? In short, it means that more people will be eligible for a mortgage, even if they don’t fit the traditional mold. It means that borrowers with complex income situations or adverse credit will have more options, and that they’ll be able to secure larger loans.
It’s also a sign that the mortgage market is evolving, and that lenders are becoming more flexible and adaptable. As a broker, I’m excited to see how these changes will play out in the market, and how they’ll impact the borrowers I work with.
Conclusion
Overall, the changes to Selina Finance’s lending criteria are a welcome development for borrowers. By taking a more flexible view of income and credit history, the lender is acknowledging the complexity of modern life and the many different paths that borrowers can take. Whether you’re a first-time buyer or a seasoned homeowner, these changes could make a big difference in your mortgage journey.
I hope this article has provided valuable insights into the recent changes to Selina Finance’s lending criteria. As a mortgage broker, I’m always looking for ways to help my clients navigate the complex world of mortgages. If you have any questions or would like to discuss your own mortgage options, please don’t hesitate to get in touch.
