The move is the first in a series of policy and product changes planned for the year
Digital lender Selina Finance has announced improvements to its lending criteria, allowing it to accept applications from a broader range of customers, particularly those with adverse credit.
To better support applicants with adverse credit, the lender has adjusted its policy so that applicants can now qualify for Status 0 if they have up to two missed payments across multiple unsecured items of credit.
Also, there is no longer a requirement for unsecured items of credit to be up to date if consolidated for Status 0 products. For the Status 1 plan, the lender will now ignore conduct on any unsecured item of credit, provided it is either being consolidated or brought up to date at the time of application.
As part of the first in a series of policy and product enhancements planned for the year, Selina Finance will also now consider up to 100% of bonus, commission, or overtime income in affordability assessments, provided regular payments are proven.
For employed applicants, the minimum time required in their current role has been reduced to one month, ensuring those who have recently changed jobs can access Selina Finance’s products.
The maximum loan-to-income (LTI) ratio has been increased to 6.5 times income for Selina’s Status 0 plan, while it remains at six times income for Status 1. The lender has also removed the minimum income requirement.
Earlier this year, the company announced two new funding lines to support its growth. It has also invested in streamlining the experience for brokers and borrowers, including the introduction of e-signatures on offer documents, increased automation in underwriting processes, and an expanded underwriting team.
“These policy enhancements mark a significant change for Selina in terms of our risk appetite and really widen the scope of what we will accept,” said Stacey Woods (pictured), head of intermediaries at Selina Finance. “Our brokers will certainly find that previous declines would fly through now. The changes allow more customers to access our products and experience our hassle-free digital journey. This is the first of many product enhancements that we have planned for the year, so watch this space.”
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