Selina Finance boosts proc fee on second charge product   – Mortgage Strategy

Selina Finance has updated its home equity line of credit product and boosted the procuration fee on the second charge loan for brokers.  

The specialist lender will now pay a flat 1.5% proc fee on the product, which will be paid upfront with no minimum user requirement. 

Previously, the maximum procuration fee was 2% for master brokers and 1.5% for others, such as private clients and directly authorised brokers. 

But this was only paid on whatever was drawn, and the firm withheld some of this cash if customers repaid — for the first 12 months only.  

However, the firm will now pay the fee upfront on the second charge offer to give brokers certainty.

The lender says other improvements to its home equity line of credit product include: 

• Clearer clawback terms, limited to cases where the facility is fully closed within the first year 

• Flexible drawdown periods of two to five years, aligned to customer needs 

• Fixed credit limits during the flexible drawdown period, with balances that can be drawn, repaid, and redrawn 

• Affordability assessed only on the repayment period, simplifying case assessments 

Selina Finance vice president of growth Henry Vaughan says: “We’ve simplified and enhanced our home equity line of credit product to make it easier for brokers to place and for customers to use.  

“Whether it’s for home improvements, school fees, or property investment, this product gives borrowers the flexibility to access funds when they need them and repay without penalty.”