Selina Finance has made changes to its criteria for credit impaired borrowers while paring back its method of assessing affordability and lowering its minimum loan.
All previously resolved county court judgments (CCJ) and defaults, including those under £500, will no longer be considered in its assessments.
The second charge specialist lender now accepts applications with total CCJs or default balances exceeding £5,000 if consolidated.
New criteria has been set for two distinct credit statuses:
- Status 0: No new entries permitted within the past 24 months.
- Status 1: Up to one new entry permitted within the past 24 months.
Affordability criteria has also been streamlined and some buffers have been removed from its affordability calculations.
Only essential outgoings such as council tax, childcare, service charges, and ground rent must be declared in affordability assessments while the debt-to-income (DTI) threshold has been raised to 55%.
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The lender has also reduced its minimum loan size to £10,000 to attract borrowers looking to fund home improvements, consolidate debt or cover short-term financial needs.
Stacey Woods (pictured), head of intermediaries at Selina Finance, said: “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. This is a key step forward to making lending more accessible and hassle-free for all parties involved.”
In recent months, Selina Finance signed a five-year contract for Phoebus’ mortgage servicing platform. As part of the long-term agreement for the mortgage servicing platform, Phoebus will now be responsible for the servicing of the mortgage loans administered by Selina Finance.
